BOI declares Sarbjit a flop, KoiMoi a PLUS. Who's right? - Page 2

http://www.indicine.com/movies/bollywood/indian-box-office-model-explained-in-detail/

So if a film is successful only when a distributor makes no loss, distributors lost 60 crore in Dilwale yet it was declared a "semi hit", and not an average, flop or disaster. Why?

Originally posted by: ponymo

^I never claimed it was a clean hit. I am only saying it recovered its budget.

"A film has to make profits for the distributors for all territories in India for the trade to call it a success." : Like I said, many distributors lost money in Dilwale too (just using this example b'cos you used the same), but it was still treated as a success/semi-hit. Where's the logic in that?

Shah Rukh Khan refunds 50% losses to distributors of Dilwale

By Bollywood Hungama News Network, Feb 9, 2016 - 11:21 hrs IST

In December last year we saw the release of the Rohit Shetty directed film Dilwale featuring Shah Rukh Khan, Kajol, Varun Dhawan and Kriti Sanon. The film which was produced by Red Chillies and Rohit Shetty Productions, despite featuring a star studded cast and insane promotions did not perform as expected at the box office. However, now months after its release we hear that Shah Rukh Khan, whose production Red Chillies took over the distribution of the film in India has decided to refund the individual distributors to a certain extent for the losses incurred.

In fact back in 2001 and 2005, Shah Rukh Khan had refunded the individual distributors of his films Asoka (Eros) and Paheli (UTV), after both films underperformed at the box office. As a direct result of the actor's 2001 film Asoka underperforming at the box office, Shah Rukh's subsequent release Chalte Chalte was sold for a much lower price. On similar lines after the failure of Paheli, distributors of Shah Rukh's next venture Om Shaanti Om were given first right of refusal to acquire the film.

Recently admitting Dilwale's underperformance at a press conference Shah Rukh had said, "I don't think the film has done as well as it should have. I am personally disappointed with that", well now the actor has decided on reimbursing 50% of the losses incurred by the distributors. However, the interesting part here is that as of last count Dilwale had done approx. Rs. 150 cr net business in India and Rs. 174 cr gross in the overseas markets, while the satellite rights were sold for Rs. 70 cr to Sony MSM. Music rights of the film were sold to Sony for Rs. 18 cr. With the sale of these rights Shah Rukh quite literally made a killing on the project earning close to Rs. 150+ crores as profit!

SRK had set a domestic distribution target with a minimum guarantee (MG) of Rs. 130 cr; but sinceDilwale collected around Rs. 150 cr at the India box office, the distributors share would have amounted to approx. Rs. 70 to 75 cr which meant a loss of around 55 to 60 cr cumulatively for the individual distributors pan India. According to our reports, Shah Rukh has refunded close to Rs. 25 cr to cover up 50% loss to distributors asking them to bear the rest. If that wasn't all, sources close to the actor and his production mention that Shah Rukh has in fact, prima facie also consented to these distributors getting first right of refusal for his next release Raees.

With this news we guess SRK is indeed a 'Bade Dilwala' and a large hearted Raees.

http://www.bollywoodhungama.com/news/17343897/Shah-Rukh-Khan-refunds-50%25-losses-to-distributors-of-Dilwale

^Then why did BOI declarled Dilwale a semi-hit even though it's not a success?

Originally posted by: ponymo

So if a film is successful only when a distributor makes no loss, distributors lost 60 crore in Dilwale yet it was declared a "semi hit", and not an average, flop or disaster. Why?

Originally posted by: MoStLyHaRmLeSs.

That is just BOI and it's verdicts... They have a habbit of labelling any film that earns above 100 cr atleast a semi-hit...

Bang Bang, Dilwale, Jai Ho were not ideally what you would classify as a hit

I guess the big number maybe

Personally I think flop, hit and blockbuster suffice for tagging films... 😆

Btw using the same logic, if Ki&Ka's budget is 35 cr, wouldn't it have to collect 70cr to earn a hit tag, which it didn't, then how come it is called a hit by a few? Koimoi called it a plus too.

India doesn't have credible trade updates on collections n verdicts like HW's Variety, Box Office Mojo and Rentrack.

Originally posted by: ponymo

Btw using the same logic, if Ki&Ka's budget is 35 cr, wouldn't it have to collect 70cr to earn a hit tag, which it didn't, then how come it is called a hit by a few? Koimoi called it a plus too.

Sarbajit is a flop because it caused huge losses for the distributors. As distributors bought it for 20 cr and thier share in business collection was just 14.5 cr. And if we include world wide, 24 crore was bought amount and made 17 crores.

Ki and Ka's distribution rights was not bought by Eros, they were co-producers and movie needed to earn more than its budget which it did with flying colours as its target was 45 crore for hit tag.