Cinema

2point0 pre release business : Break up and detailed analysis

Here is a brief analysis and break up of 2point0 movie pre release business. 

Satellite rights -110 C to Zee network all three languages Tamil, Hindi, Telugu

Tamilnadu theatrical rights – 90 C +(Lyca own release in TN. So this amount is just how much Lyca the distributor would have paid to Lyca the producer)

AP/ TS theatrical rights – 85 C

Karnataka theatrical rights – 35C

Kerala theatrical rights – 14.5 C

Hindi version north India theatrical rights – 85 C (Karan johar dharma movies)

Overseas – 150 C (estimation) please see explanation below.

Digital rights – 54 C Amazon prime

Audio rights -5 C (nearly)

So Total 2point0 pre release business comes close to 640 Crores nearly

This is the biggest ever pre release done by an Indian movie which is expected from the biggest Indian movie ever.

Overseas 150 crores:

Baahubali 2 collected 800 crores overseas

2point0 is expected to break the collection of Baahubali 2 in the international market, as it appeals more to the international audience than Baahubali 2

With that in mind it is expected to collect atleast 500 crores, which easily accommodates to the 150 crores selling price. Also for overseas markets usually Indian producers sell for fixed cost basis and not distribution (share basis) like in Indian market. Because it is not possible to track the numbers in foreign markets like Indian market unless the production company has international exposure which Lyca has. So Lyca has not sold 2point0 in the key international market, USA. Lyca is partnering and releasing with the distributor there which means its released on share basis just like in India. So Lyca will be getting a percentage in the profits in US market apart from the sold amount (to know how distribution works see explanation below how is distributed in Hindi)

2point0 Hindi market:

2point0 movie in all Indian markets as far as we have tracked, is sold in share basis, like 90% of other movies. Because as pre-release you cant expect huge money as a price from distributors, so they will pay a portion and remaining on theatrical collection and calculated once movie run is completed.

So amounts you see in the page above are advance amounts and Lyca will be getting additional percentage profits on the additional theatrical gross. But this gives you an indication what the total gross of the movie is expected (in the range of 1500 crore+ worldwide)

Example: In Hindi 2point0 is sold to Karan Johar for 85C, Baahubali2 collected 500 crores in Hindi (strongest Hindi business ever)

2point0 is expected to do similar numbers in Hindi market, it could be plus of minus 25% based on review etc.

So expected nett collection for 2point0 in Hindi is 300c nett to 600 nett range…

So If movie collects 300 cr nett in Hindi and Karan bought for 85 crores will he collect all the money and make 215c additional profit? NO

This is how distribution and pre release business works:

If movie collects 300cr nett, first 85cr goes to Karan johar (his portion paid as advance) and in the remaining 215 cr Lyca and Karan to split up the profits on agreed percentage basis… (70-30,60-40 etc)
So from additional 215 crores, Lyca is expected to get additional share of 145c and Karan expected to get additional share of 70crores apart from the 85c investment paid first

If 2point0 Hindi netts only 200 crores, Lyca will make 85c+ 75c= 160c nett from it and Karan johar will make 40 c nett profit out of his 85c investment
If 2point0 Hindi netts 300crores , Lyca will make 85c+ 145c= 230c nett from it and Karan johar will make 70 c nett profit out of his 85c investment
If 2point0 Hindi netts 500 crores, Lyca will make 85c+ 285c= 370c nett from it and Karan johar will make 130 c nett profit out of his 85c investment

This is just for Hindi market but applies to TN, AP/TS, KA, Kerala as well.

This is an estimation post and could be plus/minus by 20% but hope you got an idea how distribution works and the business model…

Click here to read our day 1 WW gross estimation 

We will publish more information and update the post as required

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