FILMIKHABAR

Fox Star Studios has acquired the worldwide rights (excluding audio rights) of Karan Johar’s My Name Is Khan for a reported price of Rs. 80 crore. Along­with the announcement of the deal this week came another ann­ouncement – that the film is being made by Karan and Shah Rukh Khan in partnership.

While the trade may opine that Rs. 80 crore is too high and risky a price, the fact is that it might actually be a cakewalk for Fox Star Studios when My Name Is Khan gets ready for release early next year even after Fox would have spent another Rs. 15 to 20 crore on promotion and prints.
The way box-office business is growing these days, revenues of Rs. 95-100 crore (MG royalty of Rs. 80 crore plus Rs. 15/20 crore for prints and promotion) for Karan Johar’s film looks a certainty. Of course, with Rs. 95-100 crore, Fox would just break even but what one is trying to arrive at is that the risk to Fox is not very big. If the film clicks in a big way – as it is expected to – the profits would obviously accrue to Fox.

And how exactly will Fox recover Rs. 100 crore? Given three facts – the immense popularity which Shah Rukh Khan commands in the Overseas circuit; the outstanding track record of Karan Johar in that circuit; and the Overseas audience treating Kajol as a hero rather than a heroine – the business which My Name Is Khan, starring Shah Rukh and Kajol, could end up notching in the Overseas circuit can well be imagined. And one is not even talking about the non-traditional markets here. Fox, of course, would target the film in markets where Hindi films have never been released so far and that must be the main reason why Johar and Khan chose Fox as their distributor.
If My Name Is Khan is a successful film, a share of Rs. 35 crore from Over­seas is not a far cry, more so because the subject is said to have tremendous appeal for the Muslim audience. Pakis­tan and the Middle East markets could prove to be a gold mine for this film. It may be mentioned here that Shah Rukh plays the title role of a Muslim while Kajol is his Hindu wife in the film. Shah Rukh’s Om Shanti Om has reportedly done a business of Rs. 25 crore abroad. Each of Karan Johar’s films has cross­ed the Rs. 20 crore mark Overseas.

Given the all-India business of films like Ghajini (Rs. 59 crore), Singh Is Kinng (Rs. 35 crore) and Rab Ne Bana Di Jodi (Rs. 48 crore), the business of My Name Is Khan could easily touch Rs. 60 crore. It may be mentioned here that business is only growing with each passing week.
Therefore, you already have Rs. 95 crore from theatrical revenues of India and Over­seas. Satellite rights for a film like My Name Is Khan could go for anything between Rs. 15 and 20 crore and home video, for Rs. 3 to 5 crore. All of this would mean that Fox could earn anywhere between Rs. 113 and Rs. 120 crore. This could be the minimum earnings from the traditional markets alone.
All of this underlines our claim that Karan Johar and Shah Rukh Khan have, in fact, underpriced their film. It would shock readers to know that the film would cost the makers more than Rs. 70 crore to make! Obviously then, Karan and Shah Rukh are not treating the sale to Fox as a pure business deal. For, had it been so, they’d have asked for a higher MG royalty.

For Fox Star Studios then, My Name Is Khan is a brilliant buy and a steal!

- Komal Nahta

Source:

The Film Street Journal

Issue dated Aug 9 – 15, 2009

Written by :

DON

 

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