Movies : Movie Trade : Why Businessman failed in USA?

As the first month in the New Year 2012, came to an end, lets have a look at how Telugu films fared at USA box-office with authentic figures.

Mahesh Babu is now enjoying the dream run of his films at box-office. He set all time records with Dookudu at overseas box-office and smashed all opening records in India for a Telugu film in the first week with Businessman. It is a fact that Businessman is a hit India. But why did the film fare so badly in USA and other overseas territories. When the film released in such massive manner in USA, why the film ended up losing nearly Rs 1.75 Crores?

Businessman in USA

The entire gross amount for the movie in USA till the last weekend is estimated at $831,895.00. Rent on an average is at 30% and tax is 6%. Rent varies in some centers, but as a standard it is taken as 30% for calculation.

So, deducting 36% out of $831,895.00 makes it $532,412.8 (share) which in Indian Rupees is 2.65 Crores (share) in U.S. According to our sources, the closing share will be around Rs 3 Crores in U.S.A. Some exhibitors in big centers would be losing money since it was bought for huge amounts.

Other than USA

Outside U.S.A, the movie is sold for 75 lakhs prior to the release. According to our sources, the film is might end up with the gross of Rs 70 Lakhs and a share of Rs 50+ Lakhs.

Businessman Final report in overseas

So, final closing share of Businessman in entire overseas market including US would be at R 3.5 Crs. The film is bought for Overseas is for Rs 4.6 Crs and with the inclusion of cost for prints (including digital), the final cost is Rs 5.2 Crores.

So, the the losses would be around 1.70 Crs
(Rs 5.20 Crores - Rs 3.5 Crores = Rs 1.70 Crores)

Hit in AP, Flop in USA

So in final analysis Mahesh Babu who stormed the overseas Box-office with Dookudu (that collected nearly Rs 10 Crores of share) failed to create his magic with Businessman as the movie got mixed talk and poor reviews.

Flop in AP, Hit in USA

Mahesh Babu's Khaleja was a failure at Box-office in Andhra Pradesh but the movie collected more than Rs 2 Crores in USA, there by bringing profits to the USA distributor.

Mahesh Babu's brand equity

Mahesh Babu always had a huge following in US and his films made big money right from Athadu. Pokiri then smashed all records in overseas market, and then Khaleja was also hit despite the movie was a flop in India and his Dookudu ran bigger than most big-budgeted Hindi films.

Entertainment is the key

In USA, films that have more entertainment quotient run well at box-office than the action entertainers. But again, all comedies don't work at USA market. Eg: All Allari Naresh movies are comedies but he is yet to taste a big success here. Businessman with no proper script didn't have the 'entertainment value' to entice the overseas audiences.

Bodyguard losses half the amount

Despite better reviews compared to Businessman, Bodyguard failed to attract the USA audiences. The openings were pretty ordinary, to say the least. The first week collections in USA are around 28.5 lakhs (share) or $56,960.00 (share).

Bodyguard didn't enjoy the wide release outside US and was released in limited screens and the share in these areas is hardly Rs 5 Lakhs.

First week share of Bodyguard is 28.5 lakhs + 5 lakhs = 33.5 lakhs.

During second weekend, the movie collected gross of 5k on Friday(01/20/2012), 9k (gross) on Saturday(01/21/2012), around another 9k on Sunday.

So the final closing share of Bodyguard in USA is not more than Rs 45 Lakhs (Share) with other non-USA areas it might end with Rs 50 lakhs of share. That means distributors would be losing 50 % of the investment.

- Acknowledgments : RC and friends

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