Rangoon Business Economics: Case of costs failing a film before release

Vishal Bhardwaj’s Rangoon is a classic case of economics giving the film absolutely no chance to recover costs at the box office. Even if Rangoon turned out to be a fairly good film, it would still be a flop. What it needed was extraordinary content and growth that matched films like ‘Piku’, which sadly isn’t going to be the case.

The film could be this February’s ‘Fitoor’ – which was made on slightly lower costs, but opened to even poorer numbers and was a major disaster at the box office. While it’s too early to write a film off on the second day of the release, a low first day total means it needs nothing short of a miracle from here – more so since growth in business hasn’t really come on Saturday. Some places have in fact shown drops from Friday.

The problem is not really the film here, but the fact that directors like Vishal Bhardwaj are given the budget and canvas to make films as big as this. Ideally, he should be casting non-stars who charge a much lesser acting-fee and the film should be made within a budget of 15-20 crore.

For example, a film like Badlapur, even though it had a more bankable star, would still fail if it was made on a budget of 80 crore. It went on to become a hit because the actor charged less and the film was made within a realistic budget for its genre (27 crore including print and marketing).

With Rangoon, it’ll be a struggle to even recover the marketing expenses from theatrical business – let alone the hefty acting fee.

Sajid Nadiadwala makes a profit out of Rangoon, but Viacom18 could end up losing more than 40 crore of its investment. This would put a lot of pressure on their big film this year – Sanjay Leela Bhansali’s Padmavati which is possibly the most expensive film ever made in the industry.

Rangoon Business Economics breakdown (Note: All figures as per trade sources)

  • Total Investment: ?80 crore (Sold to Viacom18 for 67 crore + print and advertising 13 crore)
  • Satellite rights, Digital, Music: ?15-20 crore (approx)
  • To be recovered from domestic and overseas: ?60-65 crore

Approximate figures of how much Rangoon has to collect in India

  • Less than 50 crore: Disaster
  • Less than 80 crore: Flop
  • Rangoon will recover costs if it does ? 110 crore
  • If Rangoon collects more than ? 120 crore: HIT
  • If Rangoon collects more than ? 160 crore: Super Hit
  • If Rangoon collects more than ? 200 crore: Blockbuster
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49 Comments

  • This sorts of high budget are given to makers like Vardwaz because Bollywood has big underworld influence.
    So to make black money into white money Corrupt underworld Dons use this tyle of producers and directors for own benifit.
    Last it was widely circulated that Bajirao Mastani was financed by underworld,as Banshali has good rappot with underworld.

  • Dono y indicine is continuously pissing off this film…almost 3 articles in 2 days..letc how it will do..but writing off like this will have negative impact on d film..which is not a matured step..as an established website..wait till a week then..write..

  • When Indicine said Shahid’s movie choices are wrong then some people pointed out that some of his commercial films are also flops. But important thing here is those films if received good WOM would be hits while the kind films Shahid is doing now need not less than excellent WOM to just recover cost. His biggest hits in career are also commercial films.
    Commercial films if flop on BO then at least they are watched on TV which definitely helps the star but these niche films even if they become superhit on BO are not watched on TV.
    Some people say that these kind of films should be made on small budgets. This is true from producer point of view but from actor’s point of view he should not do more than 1 such film in 2-3 years cause due to less budget it might get hit verdict but that in no way will help the star.
    On one hand there is Amir Khan who takes niche subject but makes a commercial film from it and then there is Vishal Bhardwaj who makes niche films out of commercial subjects.

  • movies like this are supposed to be made film industry is art and work of art, bollywood is busy making things difficult for artists who want to do something different. The movie is not a loss after all the film has collection from india and global. 50 crore in india and 10 crore worldwide its still ok. viacom will not lose money. so its good deal art has to go on!!!!

  • media please dont make every movie in the category of box office nos. i know its part of success or not but not every film should be compared to others. in this case all the movies should be golmaal kind or dabang kind or r rukumar kind people need different approach, let them keep trying other ways!!! ranbir kapoor in fear of flops he ends up making romcoms only!! please give art a chance atleast!!

  • Shahid kapoor is only fit to play supporting actor he is not ready to play lead actor only that way he can save his sinking career. Good luck to him for padmavati hope it becomes clean-hit

  • @rathod yes bro u have raised a very valid question .there is a big role of underworld in bollywood ….khans are getting full financial support of underworld mafia in the likes of dawood Ibrahim. Tats true…. u remember in 2000 rakesh roshan was shot by a bullet by underworld mafia for foreign distribution rights of kaho naa pyaar hai ….

  • @indicine, movies like Rangoon and Padmavati are period dramas, so they need high budget for the sets. In these type of movies,if the budget is low then the product will not be upto the mark.

    Bombay Velvet and MD are big disasters bcoz of high budget but it was necessary to make those movies in such a big scale. It’s a different story that the content was not good.

    It’s easy to bark in the comments section that budget should be controlled and blah blah blah but no one makes a movie expecting that it’ll fail at BO. Film makers always expect the movie to earn money.
    But controlling the budget of a movie isn’t that easy as it seems.

    Box office is important but it isn’t everything and that’s why filmmakers make experimental niche movies and producers also invest in it. There is audience for all types of movies even if it’s less and that’s why they are made in the first place.

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