Will Radhe be a money-spinner for Salman Khan and Zee, Business Model Explained

With Radhe movie, a new era of movie viewing is getting started. The film will have a multi-platform release on 13 May 2021 across the world. As India is currently witnessing coronavirus second wave, almost all cinema halls are closed. So, in this special time how Radhe will make money for Salman Khan and most importantly for Zee who has brought all the exclusive rights of Radhe? We will try to explain the business behind Radhe.

A few months back Zee has acquired all the rights of Radhe from Salman Khan Films. In fact, it was the biggest deal post-covid. Zee agreed to pay Salman Khan Films a whopping INR 230 crores for all the rights (Theatrical, Non-Theatrical, Music, Satellite, and Digital). At that time deal was for multiplatform release.

But as things stand Radhe will now have near about zero box office collection in India from the theatrical business. Hence, literally, there will be no theatrical returns for Zee. Hence, a new deal is inked just a few days back between Salman and Zee and that is estimated at around 190 crores. The deal is still huge and the biggest post-covid.

Now coming to Salman first. Salman Khan Films has already made a table profit of around INR 70 crores approx with the revised new deal. Radhe movie budget is around 120 crore approx. And SKF has sold all the rights to Zee for INR 190 crores. Hence, SKF has already made a decent profit on the table. Plus, if the film releases theatrically in India in near future then they will get a part of the theatrical revenue share from Zee. In addition, very recently a lot of advertisers have shown interest in Radhe and a part of revenue earned from the advertisers will also be handed over to SKF. Hence, SKF and Salman have already made a decent profit on the table. If we consider these special times, then we can easily say that Salman has made a very good profit considering all factors.

Now coming to the most important part and that is how Zee will recover their investment of 190 crores which they paid to SKF? 

Zee has brought Overseas theatrical, Digital, Satellite, Music rights of the film. As Radhe will be releasing in the Overseas market, Zee is expecting a good chunk of overseas theatrical share. In addition, the film will be premiered in Zee5 and Zee plex on a pay-per-view model. Both the platforms are of the Zee group and all the revenues earned from them will be in their pocket. In addition to that Radhe will be premiered directly on Tatasky, d2h, Airtel Digital TV, and Dish TV. A part of that revenue will be shared with the Zee group. A minimum guarantee is already promised by these mentioned DTH platforms. Plus, Radhe will be premiered in few stand-alone cinema halls in India. Whatever be the return (minuscule) from these cinema halls a part of that will be taken by Zee. Apart from that, a part of the revenue generated from Advertisers will also be taken by Zee. In addition, a good return will be made by Zee as Satellite rights are with them. They should earn decent from the music rights also.

Yes, with Radhe new revenue model is created by Zee. It is more of an experiment for them. They have brought the Radhe rights for 10 years and they are absolutely confident that they will be able to recover their huge investment in this span of time and even be able to make some handsome profit. We only hope that Zee is able to recover all their investment in Radhe and this will pave the way to a new era of movie viewing.

Economics of Radhe (Few Key Important Points) - 

The movie Budget is estimated at around INR 120-125 crores.

Zee brought the whole rights of Radhe for INR 190 crores.

Profit made by Salman Khan Films is around INR 65-70 crores. 

Recovery of Zee Group from Radhe - 

1. Whole part of the Overseas Theatrical share is going to Zee.

2. Whole part of the revenue earned through the Pay Per View model of Zee5 and ZeePlex will be going into Zee's pocket.

3. A part of the revenue generated from DTH platforms such as TataSky, Airtel Digital TV, Dish TV, and d2h will be going to Zee. A minimum guarantee is already inked.

4. If revenues are generated from Indian theatricals, if any, then a part of the revenue will be going into Zee's pocket.

5. Exclusive satellite rights of Radhe are with Zee. A Salman Khan film generally generates INR 60-70 crores from Satellite right itself.

6. Revenues earned from the music of Radhe will be going into Zee's pocket. The Seetimaar song has already crossed the 100 million mark on youtube and it is already making decent returns for Zee.