October 12, 2013

Why Krrish 3 is Commercially Viable. Updated Details on Economics of the Film.

Krrish 3 budget is well sort of and Rakesh Roshan being in the helm of things has ensured that well. Film's like Sci-Fi with good dose of VFX goes through over the top budget. But in Krrish 3 it is well maintained. As per reports film cost is around 90 crore (including the VFX) and add another 20-25 crore for publicity and marketing of the film. That means Krrish 3 landing cost will be around 110-115 crore. Although it is not confirmed by the makers yet. Yes, it is a huge budget for any Bollywood film, but is still well controlled considering the VFX.
So, will there be any difficulty for makers to recover the investment. Not really, as most of the theatrical rights are already Sold to independent distributors across India for significant price. Overseas Rights also are excellent for the film. Plus, makers will get good substantial revenue from Satellite Rights, Music and Home Video and rest. So, there should not be any debacle of sort for makers if something unexpected happens with the film or it collects lesser than the expected business.

As for distributors cut-off mark for them would be 125-130 crore nett. If film touches that mark they will be in safe zone. If film collects say more than 135-140 crore nett nearly all distributors will start to mint profit from the film. These should not be a uphill task for the film as film is getting Holiday Solo Release and Grand Opening should ensure to pass through that zone. In Trade everyone is expecting the film to zoom past 150 crore nett mark (bare minimum), which is also a good news.

As for Krrish 3 screen release, exhibitors are trying hard to release Krrish 3 in 4000 screens in India, biggest ever or near about that. With such enormous release size even a gigantic figure like 200-250 crore nett mark is not out of reach for the film. So, those who have doubt that Krrish 3 is not commercially viable can shrug off any doubt from their mind.

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