Economics of a Shahrukh Khan Film

An article from Film Information. Currently SRK is indeed the Undisputed King of Bollywood.

It pays to be a Shah Rukh Khan, more today than ever before! Why? Because ShahRukh as actor-producer is minting money like nobody else! On a very realistic estimate, Shah Rukh’s home production, Om Shanti Om, starring himself must have cost Rs. 35 crore to make. Now to the revenues:

There are several corporates bidding for the world-wide distribution rights of the film, directed by Farah Khan, but the highest bid – by Eros – is said to be in the region of Rs. 55 crore. Add to that around Rs 6 – 8 crore for audio rights and another Rs 14 – 15 crore for satellite and other electronic rights, and you have a recovery of over Rs. 75 crore on the table, before release of the film! That means, it’s a straight doubling of investment and even more.

This arithmetic is making other top actors go crazy. Reportedly, a couple of them have decided to further hike their already high prices. But everybody needs to understand some things about Shah Rukh Khan and Om Shanti Om clearly. One is that SRK ‘s popularity in the Overseas territory is unmatched. Therefore, the price a Shah Rukh starrer commands for Overseas circuit is one that no other hero can dream of getting for his movie. Secondly, on the satellite and DVD circuit too, Shah Rukh Khan is king and he has no close competition.

Given this mathematics, it doesn’t make economic sense for Shah Rukh Khan to act in any other banner’s film except his own. Of course, exceptions for close friends like Karan Johar and Aditya Chopra will always be made.