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Originally posted by: return_to_hades
But you are only focusing on profits, not on ROI.
Producer X and Y both have 50 crore each.
Producer X makes One Big budget extravaganza and puts it all in. Gets 100 Crore returns. 50-50+100=100
Producer Y makes is cautious and makes small budget movies only. Gets 20 crore returns. 50-2+20 = 68. But Wait this is only if they makes one movie. What if he put it all in. Then we get 50-(2x25)+(20x25)=500
But you will be like not all movies can be hits. 80% movies are flops. The big budget dud rakes in 25 crore at BO. The small budget dud rakes in zero.
50-50+(100x.2)-(25x.8) = 0 crores
50-(2*25)+(20x25x.2)-(2x.8) = 90.4
In the long range forecast also Y is a better strategist than X. In the long run he will be richer.
https://x.com/taran_adarsh/status/2003693928990773605?s=46
https://boxofficeindia.com/report-details.php?articleid=9674
https://x.com/taran_adarsh/status/2017838364633010192?s=20...
https://www.boxofficeindia.com/report-details.php?articleid=9529
https://youtu.be/K0eDlFX9GMc?si=CPRv2KTOKJornR1Z
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