Here in this post we will give you the approximation of business Happy New Year needs to do so that both makers and distributors be in profit or rather in short say Clean Hit. We will try to keep this post as simple as possible so that people with zero knowledge about film business can also understand it. Reason, various reports are floating in media that film budget is huge and that needs astronomical amount to recover. Here we go!
HNY Total Budget (Landing Cost) - Film Cost INR 120 crore + INR 25-30 crore as Publicity and Marketing. Thus, total is about INR 145-150 crore.
Distribution Rights Amount - YRF has brought the theatrical distribution rights (Worldwide) of the film for around INR 125 crore as minimum guarantee. That means YRF needs to pay Red-Chillies around 125 crore whether film performs good or bad at box office as pre-decided deal. If there is theatrical profit then it will be shared between YRF and Red-Chillies.
How much makers need to be in Profit - Red Chillies are already in profit because of huge distribution deal with YRF and also its Satellite rights deal. Red Chillies are guarranteed 125 crore from YRF as theatrical distribution. Plus, film is set to earn another 55 crore (estimated) from Satellite rights which is sold to Zee. Plus film have sold music rights to T-Series for 6 crore. Others is another 2-3 crore to home video and rest. That means makers are already having a profit of around 40+ crore.
How much distributors need to be in Profit - YRF needs distributor share (DS) of 125 crore worldwide just to break even. Say, YRF collects around DS 30-35 crore (70-80 crore gross) from overseas. Then film needs to earn around DS of 90-95 crore (180-190 crore nett) from India. After that profit will start. That means while YRF making the deal with Red Chillies have assumed that film will do over 200 crore nett business in India.
Happy New Year have taken rollicking start at box office at least in first weekend. Which has ensured film will collect over 150 crore nett in 1st week itself in India. From trends, film is on its way to collect at least 190-200 crore nett in India and may be even more after that. That means distributors (in this case YRF) are at least will break even from the film in all probability. If some sub-distributors have brought rights from YRF in high price, then that is different case and they might find it difficult to recover. Otherwise distributors look safe. And coming to makers they are at least guaranteed profit of 40 crore from the film and may be even more. However if some untoward happens to film in coming days and say it collect less then 180-185 crore nett in India and less than 70 crore gross in Overseas, then there is reason to worry for YRF.
Hope that solve all queries regarding the economics (earnings) of Happy New Year film.