Jawan Surpasses Rs 1,000 Crore Milestone: Know How the Earnings Are Shared

Ronit Kawale
Ronit Kawale  - Senior Editor
4 Min Read
Shah Rukh Khan in Jawan | Pic courtesy: IMDb

Shah Rukh Khan’s Jawan Breaks the 1000-Crore Barrier

On a remarkable Monday, Shah Rukh Khan’s Jawan achieved a milestone that only a select few Hindi films have reached—it crossed the 1000-crore mark at the box office. In fact, it became the second Hindi film to achieve this feat in the same year, following Shah Rukh Khan’s earlier release, Pathaan. Aamir Khan’s 2016 biographical sports drama, Dangal, was the first to accomplish this remarkable feat.

Understanding the Numbers and Profit-Sharing

As Jawan joined the exclusive 1000-crore club, it’s worth delving into what these numbers signify and how the earnings are distributed among those involved in the film.

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  • Producers’ Share: The producer typically receives the lion’s share of the earnings, accounting for approximately 45-50% of the net box office collection. In the case of Jawan, Red Chillies Entertainment will be the primary beneficiary of this substantial portion.
  • Exhibitors’ Share: Following the producers, the exhibitors come into the profit-sharing equation. They receive about 30-40% of the total box office collection (gross collection) after deducting entertainment tax (nett collection).
  • Distributors’ Share: Distributors also claim a slice of the pie, taking a 15-20% cut from the overall box office receipts.

Stars in the 1000 Crore Club

It’s important to note that all films in the 1000-crore club feature renowned Bollywood actors like Shah Rukh Khan and Aamir Khan. These actors have long been entitled to a percentage of the film’s profits. Typically, the lead actor receives around 5% of the entire box office earnings.

Girish Johar, a film business expert and producer, provided a detailed breakdown: “If a ticket costs $100, approximately $25 goes towards entertainment tax. The remaining $75 is split evenly between the distributor and the exhibitor. The distributor takes around 10% of the ticket price, and the rest goes to the producer.”

He added, “If the producer takes 30 out of the 100, the lead actor typically receives about five percent of the producer’s share of the box office collection. In most cases, lead actors also receive a portion of all revenue streams, including satellite rights, digital rights, and song rights.”

From the 100 Cr Club to the 1000 Cr Club

Remember when Dilwale Dulhania Le Jayenge crossed the 100-crore mark at the box office? It set a new benchmark, and now, it’s common for big films to surpass this figure in just their opening weekend. The growth of multiplex chains, along with factors like inflation and increased buying power in the country, has contributed significantly to this upward trend.

Girish Johar emphasized, “Multiplexes and their higher ticket prices have certainly played a pivotal role. We used to be a 1000-2000 crore industry, but now we’re valued at over 5000 crores. Multiplexes account for over 70% of the Hindi market box office, including dubbed Hollywood films. Their expansion continues because many parts of the country are yet to be tapped for multiplexes.”

In summary, as films like Jawan continue to break records and cross the 1000-crore milestone, it’s not just a testament to their cinematic appeal but also an intricate financial dance involving producers, exhibitors, distributors, and the star power of Bollywood’s leading actors.

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