The verdict on Saawariya and Om Shanti Om, which hit the screens during Diwali is clear. According to industry estimates, the first week domestic box office collections for Om Shanti Om would be around Rs 35 crore, thus covering the cost of the movie, while Saawariya would just about manage Rs 20 crore – less than half of what Sony Pictures spent on making the movie (Rs 45 crore).

Shah Rukh Khan-promoted production company Red Chillies Entertainment is, of course, laughing all the way to the bank. It sold the the worldwide distribution rights of Om Shanti Om, starring Shah Rukh Khan and debutant Deepika Padukone, to Eros International for a whopping Rs 74 crore.

The film was made with a budget of Rs 35 crore. Khan recovered the cost of the movie and earned a profit prior to the release.

However, the big question is whether distributor Eros International would be able recover costs. The trade body says that it will.

According to film analyst Komal Nahata, Eros will earn Rs 25 crore as a distributer in the first week from domestic and overseas box office collections. Also, Shah Rukh Khan’s movies do well for a longer number of weeks and they would be able to recover the money.

However, Sanjay Leela Bhansali directed Saawariya, is headed for trouble.

“Sony Pictures will not recover the cost of production, while Eros International will certainly recover and earn profits,” said Nahata.

He said that Sony Pictures, which chose not to sell its distribution rights and dealt with multiplex owners directly, will earn around Rs 12 crore in the first week from domestic and overseas box office collections.

The trend is reflected in the earnings of key exhibitors. Multiplex group Inox Leisure earned Rs 2.25 crore in the first three days from Om Shanti Om, while Saawariya earned Inox Rs 1.5 crore.

This poor showing has made an impact on the number of shows for Saawariya, starting week two.

Devang Sampat, vice-president – marketing and programming, Cinemax India, said, “We will reduce the number shows for Saawariya in week two because of a drop in occupancy. Om Shanti Om has had a much better run”.

PVR Cinemas will follow suit. Asish Saxena, COO-film cells, PVR Cinemas said that the theatre chain will reduce the number of shows for Saawariya, as occupancy was around 59 per cent and earning around Rs 1.48 crore in the first week, while Om Shanti Om’s occupancy was 90 per cent and brought in around Rs 2.14 crore.

(source http://www.business-standard.com/ )

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