Vivegam’s Distributors Set To Incur Major Financial Losses

NEWS

Ajith Kumar’s Vivegam, may have started with a bang at the box-office, but post the extended 4-day weekend, the film has seen a steep decline in its collections. Picture this: After collecting a mind-boggling Rs. 106 crore over its four days, the film just managed another Rs. 34 crore over the next four, to complete week one with a sum of Rs. 140 crore gross. While that figure may seem excellent, the fact of the matter is that Vivegam has fallen flat after its extended weekend and alarm bells have begun ringing among its distributors because of the steep price at which the producers, Sathya Jyothi Films, have sold the theatrical rights.

To put things into perspective, the domestic theatrical rights of the film have been sold at a huge cost of Rs. 120 crore, which means the film will break even only at a domestic cume of Rs. 240 crore (after deducting the GST tax from the gross collection). Then, there’s the case of individual state distributors having purchased the film at different costs.

The Tamil Nadu rights alone have been sold to the tune of Rs. 53 crore, so the film needs a minimum of Rs. 106 crore nett now to break even in the state. With the current trend, that target is now out of reach. The film has collected about Rs. 60 crore in the state and should finish at about Rs. 80 crore, which will be reduced even further after deduction of the GST tax, leaving a distributor share of about Rs. 33-34 crore and losses to the tune of almost Rs. 20 crore. The scenario is equally worrying in other states as both Kerala and Andhra-Telangana circuits, too, are set to incur substantial losses for their distributors.

The film has minted a fair share overseas, but that’s little blessing for a big project, headlined by a major star. Ultimately, domestic collection will always hold more credence, and it’s here that the Siva-Ajith combination, which has delivered two back-to-back blockbusters, has faltered this time. It must be noted though that both their earlier ventures, Veeram and Vedalam, were made and sold at much-lesser price tags, begging the question of how much is too much to be expected for a star to recover on his star-power. However, Vivegam also suffered from the added burden of negative reviews and mixed word-of-mouth, unlike the two aforementioned films. Those factors have also played a big role in what’s sure to be a disappointing return at the box-office.

Word is that Ajith, on his part, has agreed to do a mid-level budget film with Siva to compensate the distributors for their losses. The film, which will again be bankrolled by Sathya Jyothi, is expected to go on floors soon and be released sometime mid next year, with lesser stakes riding on it and amid significantly lesser hype and fanfare than Vivegam, so as to reduce its overall landing costs and make it a viable recovery option for all those who lost money on Vivegam.

Overall, 2017 hasn’t been kind to some of Indian cinema’s biggest superstars, with Ajith the latest to join the list after Bollywood superstars like Shah Rukh Khan and Salman Khan also saw major debacles this year. Vivegam is all but certain to be Thala’s first outright flop since 2012’s Billa 2.

Image Source: Sathya Jyothi Films

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












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