Compensation and its effects.......

Topic started by forum (@ 202.64.123.3) on Sun Sep 29 22:05:53 .
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Rajini has compensated the exhibitors for the loss that they suffered in exhibiting the movie ‘Baba’.
Background:
Baba was made with a budget of Rs. 5 to 6 crores including prints and publicity and excluding Rajini’s salary. The movie was sold for around Rs. 40 crores all over. On an average the movie has collected around 30% totally. This has resulted in a table loss of Rs. 28 crores to the distributors and exhibitors plus interest on their investment. Rajini has given back upto 50% of their losses that totals to roughly Rs. 14 crores. The net loss for the exhibitors and distributors is around Rs. 14 crores plus interest on their borrowings.
Rajini has set a precedent, which he does not have to follow as he is not going to do another movie. He has made a clean profit of around Rs.20 crores even after compensating the trade for their losses as he made the movie on a low budget. Ordinarily, when the distributors pay huge sums for a movie, they expect to see their investment on screen and be satisfied that the producer has not lined his pocket with their money. In this case, they were totally cheated by Rajini who has pocketed almost the entire amount and spent around 15% of the money only.
This daring daylight robbery and the subsequent ‘benevolent’ (supposedly) act is a double whammy for the distributors and the industry as a whole. Here is my analysis on the entire double act -
Analysis:
By giving back the money to the exhibitors WHO HAS BENEFITED:
1. Rajini’s total expenditure on this movie amounts to Rs.20 crores (after the compensation), which leaves him with a clean profit of Rs.20 crores for a movie that has been a disaster
2. Distributors and exhibitors have their losses trimmed down by half, but still they are in the hole for half their investment
3. Rajini has gained good pubilicity by having the distributors (his close aides like Nagaraja Rajan, ‘Ananda’ Suresh et al) announce in public that they have been compensated for their losses and are extremely happy about it
4. Rajini has effectively shut the mouths of the distributors from bad mouthing him and it has started working already as some of his ‘Jalras’ have begun spreading the word that the movie has collected more than other movies etc
5. Rajini does not have to suffer through making another movie as he has offered compensation to the distributors

By giving back the money to the exhibitors – How is the Industry affected:
1. Distributors and exhibitors are still in the hole to the tune of Rs. 14 crores but can only take it on their chin as their representatives are close aides of Rajini and thereby they cannot voice their grievance
2. The industry trend is to compensate the loss incurred in one movie by selling the next movie at a lower rate and returning a percentage of the amount. Because he is not going to act (he does not want to) in another movie, he has conveniently bought his way out of trouble, which puts the squeeze on other producers as the exhibitors might expect similar handouts in the future
3. Because of the compensation is such a huge amount there is a ripple in the industry, when the dust settles those who suffered losses would still be in the red and realize that they have been taken for a ride by a superior business (con) man
4. Any actor or producer who reproaches Rajini for this act, would earn the wrath of the exhibitors (till they realize what has happened) and a bad name with the public
5. Producers would find it tough to sell movies at high rates even if they have invested huge sums in making the movie and would find it even tougher if that movie comes a cropper
6. This could have a trickle down effect on the actors as well if they appear in big budget movies and it fails at the box office
7. The small percentage of public who went with the expectation of watching a big budget extravaganza after paying Rs.100 were completely cheated by the low budget saamiyaar padam
As can be seen from this analysis the only person who has benefited from the whole thing is Rajini, Rajini and Rajini.


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