February 10, 2014

Jai Ho Hit or Flop: Economics Post Release Analysis.

Generally when big star film releases it is more or less guaranteed success, and specially profits for all associated with the film, be it makers or producers. But there are cases when film under performs and question arises whether it is really a Flop or a Hit at box office. Same situation has arrived for Jai Ho. Being it a Salman Khan starrer film, it was guaranteed Hit pre-release, but now has failed in its pre-release expectations at box office. What's more Salman Khan has given 5 back to back Blockbusters before it and that is even more surprising seeing the result of Jai Ho.

Anyways coming direct to point whether Jai Ho is a HIT of FLOP. As there is lot of confusion floating in market, let's do its Post Release Analysis of box office preformance.

Economics of Jai Ho:

Budget: 70 crore. (Film Cost: 55 crore. P&A: 15 crore).
Theatrical Rights (India + Overseas): 111 crore.
Satellite Rights: Approx 55 crore as per package deal of Salman Khan to Star Network.
Music, Home Video and Others: 7-8 crore.
Distributor Share: India 62-63 crore (Lifetime Expected). Overseas 17-18 crore (Lifetime Expected). Total Worldwide 80 crore.
What's Makers Earned: Makers have made around profit of (Theatrical Right + Satellite Rights + Other Rights - Budget) 103-104 crore approx.
What's Distributors Earned: Actually Distributor (including sub-distributors) combined all India has made a loss of around (Worldwide Distributor Share - Theatrical Rights) 31 crore.

Verdict: Makers of Jai Ho that is Salman Khan, Sohail Khan and Team Jai Ho has made one of the biggest table profit of over 100 crore which is humongous as most of the rights sold pre-release. But distributors Eros and various sub-distributors have made a combined loss of around 30 crore.
Hit or Flop: Film is actually neither a mega Hit or a big disaster. Its final verdict is awaited but it is almost certain that film will settle in Above Average or Semi-Hit region.

Note: Jai Ho is still running in theaters and we have taken assumptions of lifetime business on early trends. Hence, if actual varies then final outcome will also vary. But the difference will not be much.

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