Bollywood Business Talk With Taran Adarsh

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By Taran Adarsh IndiaFM

Domestic B.O.: UTV makes a cool profit

The economics of film production is changing at a rapid pace. Star fees have escalated, so has the cost of production [C.O.P.]. In such a scenario, the recovery of his investment is what the producer looks at, at the end of the day. That’s precisely what UTV was eyeing when they issued a statement prior to the release of DHAN DHANA DHAN GOAL. In-film advertising and sale of Satellite, Home Video and theatrical rights [in this case, Punjab and Rajasthan territories only] helped UTV cover the C.O.P. of this sports-based flick -- Rs. 16 cr.

But this isn’t a new trend. UTV has been transparent enough to let the world know of their recovery statement. Talking of GOAL, taking the 16 cr. cost and adding another 3 / 4 cr. for prints + promotion expenses, the break-even amount is somewhere between 19 – 20 cr. Fortunately, GOAL performed well at multiplexes in its opening weekend, to ensure this recovery.The film had a fairly strong start at most multiplexes on Friday, shot upwards on Saturday [shows were increased at some cineplexes], reached the zenith on Sunday. According to UTV, the 3-day figures are approx. 7.29 cr. [domestic market]. Let’s get more specific…

Multiplex collection for weekend was around 80% average.
Single screen in metros and mini metros was in the range of 60% + for weekend.
Overall average occupancy for weekend was in the range of 73%, where multiplex contributed almost 85% of box-office.

On weekdays, Monday saw a drop in collections; as compared to Sunday, was in the range of 45% to 50% and compared to Friday, the drop was in the range 30%.
On Tuesday, there was a slight increase in collections in the range of 5% to 10%, as compared to Monday.
Overall box-office for weekend and weekdays [till Tuesday] looks like in the range 65%.

In simple terms, UTV’s strategy of releasing the film at multiplexes has paid off at most metros and mini-metros. The few single screens and also smaller centres aren’t too encouraging, but the amount from multiplexes more than compensates for the not-too-strong performance.

UTV is hopeful that the first week figure should touch 11 – 12 cr., which means that the distributors should have 50% of the amount in their pockets as distributor’s share, thus making GOAL a safe bet. And that in today’s times is no small achievement!