Karan Johar explains how a movie can make money even after it has flopped at the box office

Karan Johar is one of the most prolific filmmakers in India. Karan Johar recently revealed on Masters’ Union’s Business of Bollywood podcast how a movie can make money even after it is failed to create any magic at the box office. Explaining the mathematics behind the budget of the project, Karan cited an example of how money is divided.

“If I’m getting Rs 40 crore from digital and I’m getting Rs 20 crore from satellite and I’m getting Rs 15 crore from music, then I’m already at Rs 75 crore. My cost is Rs 90 crore. So I’m presuming my film will do around Rs 40 crore (in the theatres). If I do Rs 40 crore, then 55 percent of that comes home theatrically. So then, I’m like okay, I can make this movie. This is your intelligent mind, doing this calculation but if you have to take a chance, you have to take a chance,” Karan Johar said on the Masters’ Union podcast while talking about the business of Bollywood.

Citing another example, Karan Johar said that if a film requires Rs. 80 crore nett collections at the box office, it is a risky venture in current climate post-pandemic. “That’s the time you are taking a risk because in this climate you don’t know what will work and what won’t but this simple mathematics, I always do for a filmmaker,” he added.

Furthermore, he talked about how a movie can make money even if it is a flop only due to cost control. He elaborated, “Suppose I make my film in Rs. 50 crore because it’s a smaller film, but my digital and satellite rights are Rs. 60 crore, so even if it bombs I have made the money even before it hits the cinemas, and a lot of times that has been known to happen. And you could make a massive movie and it could do a massive number but you spent so much money that you haven’t been able to recover your cost.”

Meanwhile, Karan Johar is set for his next directorial Rocky Aur Rani Ki Prem Kahani with Alia Bhatt, Ranveer Singh, Dharmendra, Jaya Bachchan and Shabana Azmi. The film releases in April 2023.

ALSO READ: Karan Johar recalls popping pills every night before Brahmastra; calls it based on “crazy idea”

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