This story is from November 26, 2007

Friday is no longer D-Day

Rajat Ghai / TNN / Nov 26, 2007, 00:00 IST

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With newer media avenues and platforms, producers needn’t be worried about box office returns. They can retrieve it all... much before the film releases.

doweshowbellyad=0; Madhuri Dixit in a still from the movie Aaja Nachle More picsThere was a time when Friday was the most important weekday for Bollywood film producers.
With fingers crossed, they used to await the reports of how their product had fared, for it decided the returns and dividends they were to receive. Friday was the make-or-break day for producers.
Not anymore. Factors in the past few years, have contributed to cause producers’ anxiety on Friday to ease.
“Traditionally, films over-relied on the box office. But now, you have so many options like the rights for overseas distribution, satellite television, home video, in-flight and music. Also, new technologies’ entry means that you now have gaming and merchandising rights as well,” feels Navin Shah, CEO of a production house.

Not that it is new. “All these rights were already present. But they were distributed among different parties. Now, a single production house usually bags them all. This stands the producers in good stead since they have to be answerable only to a single individual or entity. It ensures greater transparency,” says Ashish Saxena, CEO, film cell, at a prominent production house.
Agrees filmmaker Pritish Nandy, “Yes, it is not new. But it is fetching higher values now. This is primarily due to the mushrooming of multiplexes and single screens, all of which can be used for more exploitation.” Shah gives some interesting information about how the multiplex-boom has led to an increase in box-office revenues. “While the ratio of theatrical returns in comparison to commercial rights plus branding has changed now (From 80:20 earlier to 60:40 now), they have themselves increased. From Rs 50/ticket earlier, it is now Rs. 200. Also, from 300 prints, it’s now 1000 prints for every big film. If the gross box office product for No Entry in 2006 was Rs 40-50 crores, it is Rs 150 crore for Om Shanti Om this year,” he reveals.

So, what commercial rights are being talked about here? “Overseas rights have become significantly important because of the clout that diasporic populations have now acquired. Satellite rights are important because the broadcaster boom has lead to competition. Every broadcaster would like to show only the best content,” explains Siddharth Roy Kapoor from another prominent production house. And there is more. “The home video rights market has increased by a whopping 200 per cent in the past two years. Even a shrinking market like music rights has been resurrected due to digital downloads becoming popular,” informs Shah.
Not to forget branding. “Branding is a catalyst, which gives marketing support, causing a publicity increase. It does not directly cause a jump in revenue or its retrieval. Today, in an average film costing between Rs 12-50 crore, branding is worth 10-50 lakhs,” says Shah. But, there is a catch. “The more famous brands used, the more lucrative the rights’ sale,” he adds.
But just how useful are presales and branding for quality film making? “It’s a double-edged sword. I am not against producers retrieving costs. But, it should not become the sole criteria for film making, which is the story,” says filmmaker Kabir Khan. Agrees filmmaker Vivek Agnihotri, “We are doing business. But, we should draw a line somewhere.”
So, you may avoid losses if you want, but your product should be worthy enough. As Vikramjit Roy, head publicist of a major production house says, “The box-office is the only benchmark.”

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