Low-budget films are becoming safer for producers

Low-budget films are profitable and keep the Hindi film industry running, while some big-budget films are big losses for producers.

Latest releases by Akshay Kumar, ‘Bachchan Paandey‘and ‘Samrat Prithviraj’ – both with a budget of over Rs 200 crore – exploded at the box office, earning over Rs 50 crore and Rs 60 crore in net box office receipts respectively. In the same time, ‘Kashmiri files‘, filmed on a budget of less than Rs 20 crore, grossed Rs 250 crore from the box office alone.

The second biggest Bollywood hit this year, Bhool Bhulaiyaa 2 was filmed for less than Rs 50 crore and has grossed Rs 185 crore to date.

Experts say that even if a low-budget film doesn’t do well at the box office, it’s more likely to recoup than big-budget films thanks to the sale of TV and OTT rights.

“The success of a film depends on more than just the box office. If a big-budget film performs very well, it can hardly break even, while medium- and low-budget films have a great return on investment,” Sharik Patel, chief commercial officer of Zee Studios, told ET. recent interaction. “That’s why we have a portfolio strategy. We will continue to invest in smaller 10 crores films as well as medium sized 30-40 crores films and a few large ones.”

Take, for example, ‘Janhit Main Jaari‘, a low budget film from the recently released Vinod Bhanushali. Bhanushali Studios. It didn’t exactly set the box office on fire and ended up grossing less than Rs 5 crore in two weeks. But the film has already paid back the cost and brought producers a small profit even before the release.

The production cost of the film, including printing and advertising, was Rs 20 crore, and its digital, satellite and music rights were sold for Rs 23 crore. In addition, the government of Madhya Pradesh provided a subsidy of Rs 2 crore.

According to insiders, the film made a profit of Rs 5 crore even before it was released in theaters.

“Small films may not always do well at the box office, but they can be watched well on TV or OTT,” said trade analyst Shaaminder Malik. “And if word of mouth is good, it could turn out to be a sleeper hit and earn money for theaters. It’s a lot better than some of the recent big star movies that have exploded at the box office. What’s the point of making a 200+ crore film and not getting even 50 crores at the box office?”

Bhanushali said he is planning a sequel to Janhit Mein Jaari with a top-notch film version and regional language versions. “We get a lot of remake rights offers in different languages,” he said. “We have decided to partner with leading local production companies and co-produce a film in Tamil, Telugu and Punjabi with leading actors in each language.”

Vishal Gurnani, one of the film’s co-producers, said “The film generated a 54% return on investment in its first monetization cycle and is projected to generate 600% over its lifetime and revenue from future sequels and remakes.”

Except Bhanushali and Gurnani, the film’s other co-producers are Raj Shandilyaa, Vimal Lahoti, Kamlesh Bhanushali and Juhi Parekh Mehta.

Intellectual property rights belong to Bhanushali Studios.

The streaming and TV broadcast rights of the film were acquired by ZEE5 and Cinema Zee.

Released on June 10, ‘Janhit Mein Jaari’ follows the journey of a young girl who takes on the difficult job of selling condoms in a small town in Madhya Pradesh despite social opposition and decides to educate her family, her husband’s in-laws and society. an important lesson in general. A light-hearted comedy-drama dedicated to the social stigmatization of condoms, Janhit Mein Jaari starring Nushrratt Bharukchi, Vijay Raaz, Tinnu Anand and others.