BIG NEWS: Hotstar Leadership team has decided to completely ignore the launch as they lost many subscribers on the day trailer launched and the total loses is about 96 crore . This news has come from someone working at a leadership level at Hotstar
To explain how consumer internet companies bid for movies : Hotstar had budgeted 72 crore for this movie and assumed an increase in subscriber base of 25 lakhs due to this movie . The cost of acquiring a new customer to hotstar is Rs 300 , so they would break even at 25 lakh new subscribers. unfortunately Hotstar lost 8 lakh customers due to Sadak 2 after trailer launch , so Its a BIG BIG Failiure for Hotstar and they have lost 72 crore + ( 300*8 lakhs) = 96 crore due to Sadak 2.
The ramifications are that Hotstar is now proposing a commission based model to movies and not paying upfront. Also they are paying significantly lower prices as they know cinemas wont release full fleged till Next year .
Bollywood is in deep shit.. Revenue from movies gone and also revenue from agenecies like Kwan that are involved in drug and trafficking will also stop for sometime ...Endorsements also gone for a toss..
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