Koimoi.com Editor Komal Nahta explains the economics of Shah Rukh Khan’s Don 2, which hit theatres on December 23, 2011, in India. A Koimoi exclusive.


Don 2 Movie Poster

In The Hands Of The Producers:

All rights sold to Reliance Entertainment Rs. 80 crore
Add: Subsidy expected from German government Rs. 15 crore
Total revenues Rs. 95 crore
Less: Cost of production (excluding Shah Rukh Khan’s remuneration) Rs. 65 crore
Profit to Producers Rs. 30 crore

This means the three producers (Farhan Akhtar, Ritesh Sidhwani and Shah Rukh Khan) have already made a profit of Rs. 30 crore.

In The Hands Of The Worldwide Distributors Reliance Entertainment:

Cost of acquisition of worldwide distribution rights Rs. 80 crore
Add: Cost of 3D conversion, promotion, prints and release Rs. 25 crore
Add: Cost of money (interest; since a huge amount of acquisition cost was paid in advance) Rs. 5 crore
Total cost Rs. 110 crore


Satellite rights Rs. 36 crore
Music right Rs. 9 crore
Overseas theatrical business (expected) Rs. 25 crore
(minimum; of this revenues of about Rs. 15 crore have already come in from pre-sale of rights of some parts of Overseas circuit)
India theatrical business (expected) Rs. 52 crore (minimum)
Total revenues Rs. 122 crore

Therefore, the profit in the hands of Reliance Entertainment will be a minimum of Rs. 12 crore (Rs. 122 crore minus Rs. 110 crore). If the film scores better in Overseas and India, the profit could go upto Rs. 20 crore. The return on investment would, therefore, be a minimum of 11 per cent and it could go upto 19.8 per cent. In filmi parlance, this would be termed a Commission Earner in the hands of Reliance Entertainment. For the sake of clarity, any film which earns more than 20 per cent on the investment is termed an Overflow film.

Note: The above figures are very close to actuals where deals have been finalised and very fair estimates (on the lower side) where revenues are still to be generated.

Update: All revenues mentioned in the above  report are net of taxes.

Komal Nahta, the Editor of Koimoi.com, is Bollywood’s most trusted trade analyst & film reviewer. You can follow him on Twitter and check out his Video Blog.

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      • Release se pehle ke nahin hai, expected revenue ko account mein liya gaya hai. Padhe likhe ho ya srk ki movies ke chakkar mein school bunk karte rahe ho?

        • saalmn is very good actor ..life me jo bi krte h dil se krte h apka khna hi kya plz ak bar bikaner aa jao na saalmn .ap sabki bat mante ho or har muskil me sath dete ho apne friends ka to kya itni si req. nhi manoge

    • Only way vidya balan will become more bankable than Shahrukh is by changing her profession to hardcore pornstar & come out with 3D porn movies on big screens.

      Parineeta FLOP, Ishquiyaa barely a HIT. people went to see TDP cuz of Silk Smita sleazy skin show to remember ’80s era.

      or else. Vidya is not even more bankable than Madhuri of ’90s or Sridevi of ’80s as an actress.

    • idiot, this takes indian theatrical business to be 52 crores. It is already 50. 2 crores by the end of three days..so whatever it earns now will add to the 20 crore profit..we’re talking about at least a 60-70 crore profit here…


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