Mega Power Star mass entertainer "Naayak" has created much hype before and after its release also, Most of the websites gave good ratings also, but this film running towards heavvy losses in Overseas market due to price tag and more expenses. This film is a completely a mass entertainer where most of the “A” center people may not showing interest to watch, this might be one of the reasons. Also overseas rights were brough at very high price. What ever reason it may be, overall it is running towards as a loss project and here is the business analysis then u can decide whether it is running towards loss or profit.
Here is the Box Office analysis for Naayak:
Four days collection from Tue to Friday :$240,000
(Including premiere shows)
Expected gross for rest of the week and 2nd week : $200,000
Non-Reported gross @ 15% :$60,000 (rounded)
Total Gross for entire run : $500,000
(As the collections were dropped heavily from Friday we shouldn’t expect more gorss in remaining days)
Total projected gross : $500,000
Total share after theater rents : 300,000 (at 60%)
Theaters rents : 40% (Big Cinemas gross is less than $75k so it will go under 60/40 slab. Most of the locations are full week schedule and distributor will get only 40 to 52% max. Share. Also 2nd week rent will be min. 45% with this gross. Taxes also not included. Several small centers which are less than $1000 gross will not recover expenses also)
Paid for Rights :$550,000
Other Expenses : $50,000
(This includes Prints, Publicity and Digital setup etc.)
Net Profit: $600, 00,000 (rights plus expenses) – $300,000 (share) = $300,000(loss) Nearly Rs 1.5 Crore.
Note: Rest of the days collections are estimations and there could be 10% to 15% variation.
Bottom Line: This analysis is not how much was the gross and how many records it broke! Whether distributors/exhibitor making Profits or not. Movies are doing well but nobody is making money!! Hoping that this will not continue in future!