Shivay vs DZ: Yeh kaise hua? - Page 2

Last week on Friday, we saw the release of the much talked about and highly anticipated film Dear Zindagi. Starring Shah Rukh Khan and Alia Bhatt, the slice of life film directed by Gauri Shinde has managed to entice the viewers despite the ongoing demonetization that has affected the previous releases. In fact Dear Zindagi has shown an exponential growth in the business over the weekend, emerging stronger than ever.

In this box office analysis, we take a look at the economics behind Dear Zindagi to understand what made the film profitable to its makers. Interestingly, despite featuring popular stars, Dear Zindagi was made on a rather controlled budget of Rs. 33 cr (Cost of Production Rs. 22 cr + Print & Publicity Rs. 11 cr) . Released across 1200 screens in the domestic market and 600 screens overseas, the makers of the film opted for a targeted release focusing mainly on their target audience residing in major metros. Keeping the screen count in sync with the genre of thefilm with a focussed approach has altogether paid off for the makers.

Another factor that helped in keeping overall production cost of the film relatively low is the fact that Shah Rukh Khan opted to forgo his usual remuneration and instead opted for a 50% profit share, while the remaining was split between Karan Johar 25% and Gauri Shinde 25%.

If that wasn't all, the makers of the film took it a notch higher by selling the all India distribution rights to Narendra Hirawat of NH Studioz on minimum guarantee royalty of Rs. 32 crores. This figure comes across as a rather modest amount considering that Dear Zindagi features the presence of Shah Rukh Khan in an extended cameo. Simultaneously, the distributor's share from overseas markets would accrue to Dharma Productions and Red Chillies.

With the above factors in place, at close of the opening weekend, the profit stands at approximately Rs. 45 crores, which indicated a 137.43% Return on Investment. However, considering Dear Zindagi continues to run in theatres, we estimate the final profit to be approximately Rs. 60 crores which means Shah Rukh Khan, with a 50% profit share, will walk away with around Rs. 30 crores as his share of the profits.

Economics Of Dear Zindagi

Cost of Production - 22.00 Cr.

Cost of Marketing (P&A) - 11.00 Cr.

TOTAL COST - 33.00 Cr.

India Theatrical Box Office (A) - 32.00 Cr. (Sold to Narendra Hirawat of NH Studioz on MG basis)

Overseas Theatrical Box Office - 27.45 Cr. (At the close of opening weekend)

Distributor's share from overseas (B) - 12.35 Cr. (Approximately)

Music, In film Placement, Digital and Ancillary right (C) - 12.00 Cr. (Approximately)

Satellite Rights (D) - 22.00 Cr.

TOTAL RECOVERIES (A+B+C+D) - 78.35 Cr.

PROFIT - 45.35 Cr.

RETURN ON INVESTMENT (ROI) - 137.43%

Disclaimer:
The Box Office figures are compiled from various sources and our own research. The figures can be approximate and Bollywood Hungama does not make any claims about the authenticity of the data. However, they are adequately indicative of the box-office performance of the film(s).