THE REFUND POLICY
After Salman Khan, now Ranbir Kapoor is also ready to return money to distributors if his film flops. Is it a good trend or will it set a wrong precedent? HT Café takes a look
In 1970, when Mera Naam Joker hit theatres, the film didn’t do well. As a result, distributors incurred losses. Film-maker and actor Raj Kapoor took note of that, and when his next film, Bobby (1973) released, he gave a bigger share to the distributors than the exhibitors. Likewise, in 2002, when Rajinikanth’s film, Baba didn’t perform well at the box office, the superstar returned money to the film’s distributors.
BIG MOVE
In the latest instance, Salman Khan is apparently going to do the same since his latest release Tubelight hasn’t fared as well as expected. Reportedly, he has agreed to pay ` 55 crore to the distributors of the film that has made around over ` 121 crore nett (the film is still running in theatres). Now, Ranbir Kapoor has also joined the bandwagon. The actor, who turned producer with Jagga Jasoos (JJ), has reportedly stated that he “will repay the distributors” if his film fails at the box office.
HEALTHY TREND?
But the big question arises: is it (paying back money to distributors if a film flops) a good trend or will it set a wrong precedent? “There is little transparency as far as distribution numbers are concerned. But what’s most important to note is that such a situation calls for a bigger course correction. In essence, it means that we need to control our costs, so that such a situation doesn’t arise in the first place. Nonetheless, it’s a great gesture,” says filmmaker Hansal Mehta.
Interestingly, exhibitor- distributor Akshaye Rathi calls it a “very healthy trend”. According to him, producers “can’t keep thriving at the cost of distributors’ hardearned money and assets.” He adds: “Most of the times, distributors don’t even watch a film before buying it, so if producers are making them gamble blindly and share profits, then they need to shoulder the losses too.”
On the other hand, while director Anees Bazmee calls it a “good gesture”, he has a different point to make. “Come to think of it, if we buy a property and its rates go down, do builders return money? Similarly, when distributors invest ` 1 with an expectation of making ` 2 but end up making ` 4, do they return the extra two rupees that they earn?” asks the Welcome (2007) director.
We need to control our costs, so that such a situation doesn’t arise in the first place. Nonetheless, it’s a great gesture. HANSAL MEHTA, FILM-MAKER
While Ranbir callss it (returning money to distrib-butors) “a healthy exercise” and that his grandfather, Raj Kapoor followed a sim-ilar trend, Salman doesn’t want anyone to lose money. “Everyone wants their films to make big numbers, and one should aim for that but my principle is, ‘if a film does big numbers, it’s very good but if you don’t make these numbers, then the next and the most important thing is that no one should lose any money,” Salman told HTT Café.Cfé
NICE GESTURE
Ranbir goes on to give an example of the times when his grandfather, Raj Kapoor was making films. “It (returning money) has been going on sincei my grandfather’sdfh’ timei in 1950s — the style of making films where everyone makes money, not just the producers but also the distributors and the exhibitors. If someone loses money on something and you have made money out of it,it it’s good to compensate,”com says the aactor-producer, addiadding, “Personally, if my film fails and I am making money out of it, then I will pay back the distributors.” Director Anees Bazmee concurs. He says, “It only shows that people such as Rajinikanth and Salman bhai aren’t just big stars but are also nice people. When distributors buy a film starring such names, they do so with a lot of expectations of making money but if they have lost their investments, it’s (paying them back) a good gesture to bail them out.”