Originally posted by: flipfl0p
I have read how distributors suffered heavy losses after Tubelight, though it was close to 100 crores. Fact is, they bid a crazy high amount for the distribution rights, thinking it is Bhai's film. They suffered heavy loss. But producers made high profit as they sold it for a record high price to distributors. (After this episode, distributors stopped bidding crazily for Khan's movies).
I suppose, it was the opposite in Uri. If producers have not distributed themselves, most of the profit would have gone to the distributors, not the producers.
Simbaa and Uri might have made same amount of money. But distributors of Simbaa would have got less profit (and producer Simbaa would have made more profit) than Uri. That is because, distributors would have bid a higher amount to get Simbaa's distribution rights.
Distributors bid shows their trust in that particular star (what is the minimum guarantee they think, this particular star can bring). Uri might be hit. But that does not determine Vicky's value as a star. How much was it sold for distributor (either this film or in future), shows his value. Hence producers pick a person with star value, as they can sell their product high to the distributor.
Currently producers are agreeing to undersell their product (selling at a lower price to distributors than the cost of production), as they have other means of recovering budget (satellite/music rights). I remember, they used it in Kaabil. Movie was a moderate success. But nobody suffered loss. No one gained high either. Even Padmavat was sold at a lesser price to the distributor than the production cost.
In JHK, it does not matter what the production cost is (usually a low budget film recovers that by music/tv rights). What matters is, how much was it sold for distributors. (That indicates the saleability of the star. In other words, how big the star Kangana is).
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