istributionRace 3 has folded at around Rs. 170 crore nett at the domestic box-office, and while that figure would have been considered terrific for most stars, its certainly not something the trade would have expected from a Salman Khan starrer, and that, too, one released during his favorite Eid period. Now though the collection is far from poor, it cant be termed a success either or even a semi-success for that matter. It certainly isnt a failure like Salmans last Eid release Tubelight, but neither does it come close to matching the blockbuster business of his last film Tiger Zinda Hai, or many of his previous box-office bonanzas.
The fact of the matter is that anything below 250 crore will now be considered disappointing for a Salman or Aamir film, given how high theyve set the benchmark for themselves. The trade expects a minimum return for their films. But, even if were to ignore the trade expectations, the film still isnt even a clean hit based solely on the return-of-investment (ROI) for its distributors, the only parameter important for measuring a films success or failure.
The smart play by Salman and Ramesh Taurani (head honcho of Tips), who had jointly produced the film, was the distribute it themselves in major circuits like Mumbai, Delhi, U.P and East Punjab, which saved the film from being a much bigger loss-making venture than it has ended up as. Though Race 3 has underperformed in these territories, too, the huge money earned by Salman and Taurani from other rights, as well as the money made by them from selling the film to distributors in other local territories and overseas markets, means that whatever they split with the exhibitors (theater owners) was already in their surplus-profit range, against a production cost of Rs. 130 crore (including print and advertising).
Had the film been sold at a lump-sum amount to a big distributor or another studio, they would have suffered enormous loss, since the minimum theatrical cost for a Salman Khan starrer on Eid can be nothing less than 100-120 crore. As is, the film has already incurred a loss of Rs. 20 crore at the distribution level, but it isnt that glaring because of the fact that the losses are divided among the few local distributors it has been sold to in small territories. The saving grace for the Remo DSouza directorial is its overseas returns, where it has entered the profit zone in almost all markets.
The table below will paint a clear picture of how Salman and Taurani have minted a combined profit to the tune of Rs. 125 crore (the satellite and digital rights were among of the highest ever paid in India) while the other small-time distributors have suffered a combined loss of Rs. 20 crore.
|Budget (including P&A)||130 crore|
|Satellite and Digital Rights||90 crore|
|Rebate from UAE (for shooting in the country)||40 crore|
|Distribution Rights (part-domestic)||65 crore|
|Ancillary Rights||20 crore|
|Domestic Box-Office||170 crore|
|Total Theatrical ROI||85 crore|
|Producers’ Theatrical ROI||40 crore|
|Producers’ Total ROI||255 crore|
|Producers’ Profit (total ROI-budget)||125 crore|
|Distributors’ Theatrical ROI||45 crore|
|Distributors’ Loss (distributors’ theatrical ROI-distribution rights||20 crore|
Based on the above breakup, its safe to say that Race 3 is an average grosser in the domestic market where the collections decide the eventual verdict, regardless of overseas returns but isnt a flop like some are making it out to be. Nevertheless, its becoming an unhealthy trend in the Hindi film industry, where producers are laughing all the way to the bank, but distributors, on the other hand, are left holding their heads in their hands.
Images Source: SKF
Disclaimer: Our box-office figures have been compiled from reliable sources and our own extensive research, and are indicative of the film’s performance in the trade. However, Movified doesn’t claim any legitimacy over the accuracy of the data, and cannot be held responsible for any discrepancy in the same.