DON an unequivocal Hit

DON an unequivocal Hit

Hit OR FLOP?

There is no industry benchmark for a 'hit'. Often it's the producer's word
Shashi Baliga


DON an unequivocal Hit-Hindustan Times

ALL OF Bollywood revolves around one three letter word: hit. Because box-office success offers a financial and emotional high, plus bargaining power.

Which is why, barely a week after a film's release, advertisements will crop up in the papers and trade journals, declaring that the film is a 'certified' hit. But wait, who has certified that it is a hit ? Often, it is a unilateral declaration of the producer.

Arrayed on the other side are the trade analysts and the media making their own pronouncements. While cinemagoers, the final arbiters of box-office success, remain completely unaware of the complexities behind that three-letter word.

The first misconception is that a hit is decided solely on its popularity and on the basis of the number of tickets sold. That's just half the story, for the term 'hit' is a trade assessment calculated on the basis of boxoffice collections in relation to the film's budget. Thus, a film made on a Rs 3 crore budget and which grosses Rs 5 crore would be a hit. But a film which grosses 5 times that amount, ie Rs 25 crore, would be considered a flop if its budget were Rs 30 crore.

For instance, Madhur Bhandarkar's Page 3 (2005), budgeted at around Rs 3 crore, collected about Rs 8 crore at the domestic box-office (and a National Award) and was declared a big hit. But Farhan Akhtar's Lakshya (2004), budgeted at Rs 25 crore, was declared a flop because it collected Rs 22 crore at the box-office.

Sometimes, the reverse can also happen, as with Ashutosh Gowariker's Lagaan (2001). Though the film was not a huge money-spinner, the manner in which it captured the nation's imagination (and an Oscar nomination), made the film what director Ram Gopal Varma calls "an emotional hit". Anil Sharma's Gadar, released in the same year, became one of the biggest blockbusters ever. But in popular perception, the film's success has been eclipsed by Lagaan.


There are instances where matters are unequivocal. Movies like Lage Raho Munnabhai, Krrish or Don, for instance, are unqualified hits.While the fate of resounding flops like Subhash Ghai's Kisna (2005) is not questioned. There are quite a few where the deciding line is blurred. Umrao Jaan, released last Friday, has already been declared a flop by the trade though producer JP Dutta and distributors, Adlabs, might disagree.

The confusion arises because the sale and distribution mechanisms in the Hindi film industry are complicated. As trade analyst Indu Mirani explains: the producer, having sold his film might make his money. But the distributors or exhibitors may take a beating. "A true commercial hit is one in which everyone concerned – producers, distributors and exhibitors – make money," she says.

And it's not always the biggies who rake in the moolah. Producer Rangi ta Nandy of last month's Pyar ka Side Effects says, "The film cost us around Rs 10 crore and has collected over Rs 15 crore net of taxes. The good thing is that we've made money, but our distributors have made more." That's because the film, not expected to do much at the box-office, was sold for a comparatively low price, netting greater profits for the distributors.

Another gray area is the distinction between gross revenues and net profit, fundamental to all businesses. Most advertisements will talk about box-office collections, which are gross revenues. While the figures might be impressive, it is net profit after settling all expenses that matters. Unfortunately, financial tinkering abounds in the industry, making this calculation difficult. Despite the growing attempts at corporatisation, the final calculation of a film's profit or loss is dicey and not-too-transparent an affair, even for insiders.

As for the aam janata, perhaps somebody needs to institute a popularity meter to complement—or contradict—the trade readings. So that they can get the real picture.

COSTS A FILM'S budget can be divided into four parts – artists' and technicians' remuneration, shooting and production costs, expenditure on publicity and cost of prints. Most films set aside around 20 per cent of a film's budget for publicity. Of late, producers have also started reserving some funds for post-release publicity. Most medium-budget films release with around 300 prints. At Rs 70,000 per print, this works out to Rs 21 lakh. Print and publicity costs are picked up either by the producer or the distributor, and sometimes it is shared by them.

REVENUES IN ADDITION to distribution rights or box-office collections (in India and overseas) a film earns revenue from music, satellite and home video rights. There was a time when music constituted a huge chunk of the revenue, but today it is the satellite and home video rights that dominate. However, these rights are often sold for a limited period and the producers can re-negotiate terms. Average revenues from audio and video rights would be Rs 3.5 crore while satellite rights would hit Rs 4.5 crore.

Hindustan Times