Economics Of EK THA TIGER: Why It Is A Blockbuster?

Monday, 20^th August 07:00 PM IST

 

Economics Of EK THA TIGER: Why It Is A Blockbuster?

 “Ek Tha Tiger” released with much fanfare on 15^th August. Film started with record breaking collections and then film touched again 20 cr plus on Sunday. Film collected highest 5 day collections ever and today it broke 100 cr barrier thus becoming fastest 100 cr grosser in history of Bollywood beating previous best of 7 days of “Bodyguard”.

Film is now heading for 120 cr nett in 6 days and then 135 cr nett plus will be 1^st week collections. Even if film drops by 60% or above then 2^nd week should collect 50-55 cr nett in 2^nd week. That will take film to 185-190 cr nett in 2 weeks. After that it will depend on performance of “Joker” and “Ek Tha Tiger” will beat 200 cr nett or not will be answered then.

As far as film’s economics is concerned then it’s a huge money spinner for Yash Raj Films. Film has fetched satellite rights of 45 crores and home video plus music rights were sold for 5 crores. Film will further earn 20-25 crores from overseas. These all will add up to 70-75 cr. Film will minimum collect 100-110 crores from domestic theatrical business for producers. Thus total earnings will be in range of 170-185 crores. Film was made on the budget of 75 crores plus 15 crores of promotion and advertising. Thus “Ek Tha Tiger” will earn 180 on the investment of 90 cr which is almost 100% of profit. Such a return on such a huge investment is mind blowing.

If this is not a blockbuster then which film is!

Budget
Production Cost	75 cr
P & A	15 cr
Total Investment	90 cr
Returns
Domestic Theatrical Share	100-110 cr
Home Video & Music Rights	05 cr
Overseas Contribution	20-25 cr
Satellite Rights	45 cr
Total Returns	170-185 cr
Nett Profit	80-95 cr*

*This is minimum profit if film earns 190-200 cr