This is a great comment, thanks for breaking it down.Originally posted by: IAmLuvBolly
Movie is made with a budget of 410cr. Disney is both producer and distributor so there’s no distributors’ sale. Disney also has their own OTT platform so there’s no revenue from OTT sales. The producers have to recover the 410 cr minimum. Everything the movie earns is split 50/50 between producer and exhibitors in India. In U.S. the contracts are a little different so let’s assume that it’s 25/75 in favor of producers and let’s assume it’s that way for all the overseas earnings. How much will it earn overseas ultimately? Around 100cr net which means Disney gets 75cr of it. Let’s round it up and say Disney gets 100cr from overseas markets. It’s still leaves it with 310 to recover and going by 50/50 split it will have to make over 600cr to just break even. I know the movie is bringing in big numbers now, but it’s way too early to assume it will go above 600cr for any amount of profitability.
All that being said, this weekend’s numbers make it very easy for marketing teams and PRs to manipulate the narrative to call this a hit even when it may not be.
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