Saturday, July 21, 2012

Boxoffice Report 2011

A total of 131 movies released in 2011. 27 of those were success of some order(success rate ~ 20%). The List of Successful movies of the Year 2011 is as follows :
Cumulative3 BO Report 2011


A movie needs to have a ROI(Return of Investment) of 0 or more, to be deemed a success.
The New Rating System is based on three “pillars” or barometers most widely used in Box-office Terminology.

1. Boxoffice Impact.
2. Trending.
3. Return on Investment.


Now, it might be argued that while something like Boxoffice Score is very easy to get for Big movies, but at the same time smaller movies have a definite edge when it comes to ROI(Return on Investment) given they both work well.
Trending is the percentage of money made out of the total nett post week 1 and hold equal importance to all movies, regardless of scale.
All three parameters are given equal weightage.
The Desirable Score of-course is 100.
The Gold Standard for Boxoffice today still remains 100 cr, same way a ROI of 100% is highly acknowledged(that is doubling the investment) and same way doubling the first week is of highest regard(again a score of 100 there).
All three scores are added and then divided by 3.
Any movie which can get close to 100 in all or an aggregate of 300, will have a score of 100.
Ofcourse a movie can score more than 100.
1. Boxoffice Impact(BO):
This score will be the Nett number in Crore of the movie at Indian Boxoffice, as of this point , a score 100 is considered quite an achievement in general.Only Collections of Hindi Versions is used in the BO Impact, as we are comparing the movies, ofcourse the revenue from other versions is added to the movie’s overall income in the ROI part below.
Bodyguard is the highest grosser of the year with the maximum BO Impact of 141, with Ready and Don 2 being other successful movies crossing the 100 mark.
BO BO Report 2011


Since the system starts in 2011 and this is the reference year, this year the Raw Nett Number will be used itself, starting next year, a “Normalized” score will be used which will take into account inflation,ticket price,market expansion etc.It will be explained at the bottom.

2. Trending:

This score is the amount of money(in %) made by the movie after week 1.
A Score of 100 will mean that the movie doubled its first week.
For example, a movie does total nett of 40 cr, and first week was 20 cr, that means it added 20 cr after week 1, that is 100% of  week 1, which ofcourse means that it doubled its first week.
Even in a saturated market, doubling first week would mean a great achievement for the movie.

Note: For movies having 8 or 9 day weeks, the standard procedure is to average out the first week into a 7 day week.For example if a movie does 90 cr in 9 days, then 70 cr is taken as the first 7 day week. Usually, the 7 day week from friday-thursday was used for the 7 day week, but with movies opening earlier, they were getting benefit because mostly first day numbers a bigger than other days. Using the first 7 days out of the 9 days is also not a great solution, as it usually includes more holidays than a normalized general week would have.

Pyar Ka Punchnama is the best trending movie of the year with a score of 125+, with Tanu Weds Manu, Zindagi Na Milegi Dobara and Singham being other movies which clocked 100+ trending score.

Trending BO Report 2011


3. Return on Investment(ROI) :

This score(in %) represent how much profit was made on the investment.Again a score of 100 is highly desirable.
The cost here represents (the budget or the amount the movie was sold)+print/publicity.
The sources of Revenue are:
India = Indian Share.
Overseas = Overseas Share.
Others = Satellite/DVD/Music/Regional Versions etc.
Murder 2 has the biggest ROI score with 175+, also Yamla Pagla Deewana and The Dirty Picture crossed the 100 ROI point.

ROI1 BO Report 2011


Adding all the scores for the movies and dividing by 3, gives us the Average scores and ratings as in the first chart on the top.
Normalized BO

The following is the Inflation chart, which shows the cumulative gross of top 20 grossers of last 5 years. Since 2006 was the year when Multiplex revolution reached its peak and saturation started happening in major markets(there was almost 72% jump from 2005 to 2006), its the right point to start a comparison.
Top 20 movies of Bollywood cover about 70% of the total business done by around 100 bollywood movies released each year, thus its a good sample size.
The % in the very bottom shows a year to year increase in the business.
The Boxoffice has been increasing between 6-13 % each year and it increased almost 40% from 2006 to 2010.

2 comments:

  1. ACCORDING TO ROI BODYGUARD AND READY ARE JUST SEMI HIT/HIT.HOW THEY ARE DECLARED BLOCKBUSTER.

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