Effect of Omicron: RRR lost 100 crores due to postponement, 20 crores of promotions wasted, 10 crores will be refunded for advance booking abroad

Mumbai14 hours agoAuthor: Hiren Antani

  • Already 30% loss due to low ticket rate in Andhra
  • Now the chances of solo release are less, interest cost will also increase

After the postponement of the release of the film ‘RRR’, there has been a loss of up to Rs 100 crore in its earnings. The longer the delay in the release of the film, the more the interest expense will also increase. The distribution and other rights of the film were sold for Rs 890 crore.

Now some deals will be renegotiated at the time of fresh release. On January 7, this film was getting the benefit of solo release, but, if this benefit is not received at the time of fresh release, then there may be a further decrease in earnings.

20 crores wasted on promotion so far

RRR director SS Rajamouli along with lead actors Ramcharan Teja and Jr NTR were promoting for the past one month in every major city of South India and other parts of the country including Mumbai. Ajay Devgan and Alia Bhatt, who were doing cameos in the film, also accompanied him in many promotions. Apart from the appearances in the TV reality show, many live events were also held. Combining all this and social media promotion, the makers have spent more than 20 crores till now.

Now whenever the new release date of the film is finalized, then again the promotion expenses will be incurred. Perhaps, once the release is postponed, it may cost more to make the buzz again. 20 crores are still submerged, after the next 3-4 months when the film will be released again, then 20-30 crores will have to be spent again.

10 crore refund in overseas booking

One of the reasons for the delay in the decision to postpone the release of RRR was that a lot of overseas advance ticket bookings had already been done for this film. Sources in the Telugu industry tell that the time has come to give a refund of up to Rs 10 crore for this booking. Because of this, rates can be negotiated in future overseas deals as well.

Earnings in Andhra will be less by 50 crores

In Andhra Pradesh, the issue is going on between the film makers and the state government regarding the ticket rate. Here the government has fixed the ticket rate limit. The makers of RRR had earlier also appealed to the state government to allow the government to increase the ticket price to meet the cost of their big budget film.

The rights for RRR’s Andhra release were sold for Rs 165 crore, but due to low ticket rates, the distributors demanded a cut in the original deal as well. A 30% cut has been agreed between the makers and distributors. This means RRR will get about Rs 50 crore less from the distributors from this state.

financier’s interest will increase due to delay in release

There is an estimate that now ‘RRR’ may release in April 2022. If the situation in the country is not normal by that time, then this film can also be dragged till September 2022. Meaning, the interest burden on the investment in this film will keep increasing for so long. According to the budget of the film from 450 to 500 crores, this amount can be huge.

The hope of getting a solo run is now negligible

The entire Telugu film industry stood with SS Rajamouli for RRR. Other makers had extended their release dates. In Hindi, ‘Gangubai Kathiawadi’ had extended its release date. Now whenever ‘RRR’ releases, the chances of getting the benefit of such a solo release in Telugu and Hindi are slim. This will also affect the film’s earnings.

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