As you might have heard by now that Rajnikath and Akshay Kumar starrer much awaited this month's release 2.0 is the costliest film in the history of Indian cinema. It has been made on a huge budget of $75 Million (Rs 500 Crores). While announcing the film, the producers LYCA had promised that they wouldn't compromise even a bit on any technical aspect so that 2.0 proves to be the first global Indian film.
Any production firm which mounts a film as expensive as 2.0 would obviously first churn out an exit route to recover all their investments. For this movie, it’s almost certain that the producers will be in plus within its first 7 days of release at the box office.
The distribution rights to Telangana/Andhra Pradesh, Kerala, Karnataka and Northern belt have already been sold;the LYCA have adopted the self-distribution model especially for Tamil Nadu and Overseas as these two are the two major markets for the business potential of 2.0.
Budget including PnP: $75 Million (Rs 550 crore)
Satellite Rights: Rs 120 crore (All Versions)
Digital Rights: Rs 60 crore (All Versions)
North Belt Rights: Rs 80 crore (Advance Basis)
Andhra Pradesh/Telangana Rights: Rs 70 crore
Karnataka Rights: Rs 25 crore
Kerala Rights: Rs 15 crore
Total: Rs 370 crore
The distribution rights at Andhra Pradesh/Telangana, Kerala and Karnataka are sold on outright basis, which means that the distributors won’t share their profits with the film's production house. On the other hand, from the Northern India profits will be shared with LYCA at a pre-determined percentage.
At this point, the producers are roughly rs 130 Crores short from their break-even point. However, recovering this amount shall not be a problem because even in the worst given scenario, the makers will earn this share from Tamil Nadu and Overseas Markets.
Vijay's last release, Sarkar earned a distributor share of Rs 75 crores from Tamil Nadu and if 2.0 lives up to the expectations, we expect the film to earn in excess of Rs 85 crores from Tamil Nadu alone thereby becoming an Industry Hit.
Lastly, 2.0 is a very profitable venture for the producers and it will not be a let-down!
Given the publicity and buzz regarding this project, 2.0 will surely be a profitable venture for everyone associated with it!