Mumbai:-Thugs of Hindostan has proved to be one of the biggest disasters of this decade as neither the producers nor the actor and not even the exhibitors have made money from this magnum opus starring Aamir Khan, Amitabh Bachchan film directed by Vijay Krishna Acharya.
The only party for whom the film has proved to be a profitable venture are the sub-distributors of YRF who distributed the film on commission basis, as it has been the norm for all their films. Before getting into the actual issue, let us first explain the business model of Thugs of Hindostan.
All Yash Raj Films are distributed in different territories by their own set of distributors on commission basis i.e. the distributors get 10 to 12% of the distributors share whereas the rest is pocketed by the producers.
Same was the case with Thugs of Hindostan. Since it was on a commission basis, the sub-distributors didn’t lose money however the exhibitors had to face a burn in their pocket.
At almost all territories in India, the sub-distributors signed a Minimum Guarantee deal with the exhibitors and quoted an amount just a little under Baahubali 2, thereby pocketing a major chunk of the profit.
By doing so, the sub-distributors made hefty monies thereby hedging their risk by passing it on to exhibitors.
But the exhibitors have lost out on more than half of their investments. Our trade sources have confirmed that the losses entailed by the exhibitors on this film are higher than Tubelight, thereby making Thugs of Hindostan one of the biggest loss makers of this decade.
A few examples of theatres which lost money are mentioned below (ByBollywood Hungama News Network)
