How Laxmmi Bomb makers are still in Profit, even if Film is premiered directly on OTT Platform

There is a lot of news already circulating in both print and electronic media that Laxmmi Bomb will release (or not release) directly on the OTT platform. All confusion because makers have not come out in open and given an official announcement on their decision.

Actually, makers are in negotiation with Disney+Hotstar for the longest time. They were already in advance talk and the only issue was the price. Now the latest information is that Laxmmi Bomb makers have finally sold the rights and they have managed to get a very good deal.

According to rumours floating in market Laxmmi Bomb has managed a digital price of whopping INR 120-125 crores. This will be a record! Any biggie at the most gets INR 60-70 crore at the most. However, those films are premiered in theatres first and then released later digitally. Here the scenario is different.

In Laxmmi Bomb case, there will be no theatrical return from India and the Overseas. Whole profit will be from three mediums and those are Satellite, Digital and Music Rights.

Scenario 1 (If film releases on OTT Platform) - 

So, what will makers earn if they release their film directly on the OTTP? No doubt as the film will be premiered first on the OTTP, there will not be much change in Satellite rights. Satellite rights of the film should be around INR 40 crores or so. Music rights will also be the same as around INR 10 crores. If we take Digital Rights price as INR 120-125 crores, then makers are getting a return of INR 170-175 crores.

Scenario 2 (If film releases in the theatres) - 

Now if the film is released in theatres first. Then what will be the scenario? Going by the buzz of Laxmmi Bomb, it is expected to do a business of say INR 150 crore net in India. It can be more also but we are taking a conservative number. That means a theatrical return of INR 70-75 crore approx from India. Going by Akshay Kumar film business in overseas, Laxmmi Bomb overseas theatrical return would be INR 15-20 crores approx (considering it does $6-7 million business). It means makers will have a worldwide theatrical return of INR 85-95 crores approx. The number could be higher (or even lower) depending on the content. Add another INR 50 crores from digital price, another INR 40 crores from Satellite and a further INR 10 crores from music rights. In this case, total returns fetched by the makers is INR 190 crores.

We can see that makers are set to have a return of INR 170-175 crores if the film is released directly on OTTP. If film is released theatrically first then makers are set to get a return of INR 190 crores considering the film does decent to good business in theatres.

In both cases makers are having a good table profit on hand as the budget of the film is much less than the returns. The only issue is the exhibition sector and distributors. No doubt they will be enraged by the decision of Laxmmi Bomb makers if the film is premiered digitally as they will be bypassed in this whole case.