‘Film pricing more reasonable today’

MUMBAI: There is a definite rationalization of prices in Bollywood films. Many thought that Salman Khan’s next film after Dabangg will fetch a huge price, but the film - a remake of Tamil hit Bodyguard - has gone for Rs 62 crore to Reliance Big Pictures, a very reasonable figure when compared to boom time acquisitions like My Name Is Khaan (Rs 95 cr), Kurbaan, Wake Up Sid (Rs 80cr), Kites (Rs 110 cr) and Ghajini (Rs 90 cr). Though there are speculations that the market will again witness a jump, there have been some good pricing calls. This includes Dum Maro Dum (Rs 24 cr) to Fox Studios and Agent Vinod (Rs 40 cr) to Eros.

“Bodyguard sends out a very positive signal. Here is a star who is on a big high and he hasn’t asked for an earth shattering price. For Salman Khan’s next Eid release, the price is imminently recoverable. Salman has shown smartness in not going for a hugely priced film which will be under pressure to recover huge money,” said an industry source.

UTV CEO, Siddharth Roy Kapur, said: ‘‘ The production cost of Guzaarish is Rs 50 crore and we have already recovered Rs 25 crore from satellite and music rights of the film.’’

“A Rs 100 crore Bollywood film appears to be a rarity and perhaps it should be. Only in exceptional cases like 3 Idiots or perhaps Endhiran in the south would qualify for that kind of pricing. We all need to take a rational view of recovery possibilities before we jump on to big deals,” said another industry source.

Saif Ali Khan’s film Agent Vinod, earlier budgeted at Rs 75 crore, is now being made at a much lesser price. Kapur said, ‘‘ When we compare the cost of production at which films were made in the last two-three years to today’s scenario, there is definitely a rationalization .

In film acquisition, too, sense has begun to prevail among buyers and sellers of films. Sanjeev Lamba, CEO, Reliance Big Pictures, said: ‘‘ We are not just talking about prices. We are talking to people about the appeal of the content, details of production and stringent budgeting. All this helps in rationalization of prices.”
Kapur adds, ‘‘ Even in the acquisition zone, sanity has come into the market.

Films that were earlier sold at Rs 100 crore and Rs 90 crore will today be sold in the region of Rs 50 crore to Rs 60 crore.’’

But some feel that actors still need to bring down their prices as only then will the film pricing stabilize. Tanuj Garg, CEO, Balaji Telefilms, said: ‘‘ There is still scope for salaries to be more sensible.’’

Though a semblance of rationalization is coming in the pricing of films, expensive deals are also happening. RA1 is next year’s most expensive film till now at Rs 125 crore. Many in the industry are awaiting a second boom season . Zindagi Na Mile Dobaraand Game have been priced together at Rs 90 crore plus. But the frequency of such deals has drastically come down.