Bollywood’s Secret to Making Money Even After a Flop
Have you ever wondered how Bollywood actors manage to make so much money? Well, the answer isn’t that easy. You see, even if one movie in an actor’s Bollywood filmography flops at the box office, he still manages to get paid handsomely because of the other movies he has done earlier in his career. Let’s find out how they do it and how you can learn from them!
Why Do People Watch Movies in Theaters?
People go to theaters in droves not just for entertainment, but also as a social experience. Many people attend movies with friends and family, making it an outing. The fact that people watch movies in theaters even when they can legally view them at home for less money is one of Bollywood’s most powerful competitive advantages. In an age where ticket prices are comparatively steep, theaters need more than just films; they need events. Being able to offer unique experiences (i.e., Hollywood has 3D and IMAX screens) can significantly boost a film’s box office performance in today’s digital environment where convenience is king.
Create Pre-Events, Not Post-Events
There are several reasons why you shouldn’t hold any post-film discussion session. First, you cannot control what happens once your film releases. You may be sure that there is nothing wrong with your film, but something beyond your control could go terribly wrong, like piracy or mixed audience reactions or just bad timing (too many films are releasing around that time). Holding post-release discussions and press conferences might seem like a good idea to salvage whatever damage is done by negative public reception but it does not actually help. Most of the audiences who have watched and enjoyed your film will not come back for an event held after its release.
Perfect Promotion Is Only Promo
Many movies under-perform on opening weekend, failing to draw enough viewers. While it’s tempting for studios and distributors to cut their losses after one or two weekends of disappointing box office, they are actually leaving money on the table if they quit early. In fact, if done right, it’s possible for a movie to profit even after performing poorly in its first couple of weeks! Through different promotional strategies, studios can reinvigorate word-of-mouth publicity, expose their films to new audiences, and generate additional revenue even after flops. Here are some simple tips you can use to promote your movie once its audience has already shrunk
A Theme Is More Than Just Costumes
Many people may not know that just as many (if not more) Bollywood movies are flops than they are winners, but every movie counts towards building something called an aggregate. Basically, an aggregate is a mathematical formula built around how successful each movie is. The better it does in theaters and over time on DVD, cable and online platforms like Netflix and iTunes, the higher its aggregate value becomes. Only when your aggregate value reaches a certain threshold do you get paid out. It helps explain why so many movies fail—it takes time for those small successes to mount up into something greater—but it also keeps actors afloat between hits.
Diversify Your Source of Revenue
Bollywood has a notorious reputation for making money, but also for producing many box office duds. No matter how catchy or exciting your movie is, if it can’t bring in enough money to pay off its production budget and marketing costs, then it’s going to bomb at the box office. As you would expect from such an influential industry, Bollywood has figured out several ways of overcoming that problem. One way they do that is by diversifying their revenue sources: while most movies rely on ticket sales alone (sometimes supplemented by product placement or licensing), most Bollywood studios earn their profits through lucrative music and other product endorsements.
Get Comfortable with Branded Merchandise
It’s easy to assume that any Bollywood film will make money once it releases. But there are several factors that can help or hurt sales of a movie, including its plot, who stars in it and when it comes out. To get an edge over similar films—and become part of India’s $2 billion box office industry—it helps for directors and production companies to come up with creative ways to make money even after their films have flopped. How? Produce branded merchandise.
Be Imaginative in Sponsorship
When you look at their revenue, it’s easy to see why. Bollywood is now India’s second-largest source of revenue after agriculture, and sponsors play an important role in helping Indian cinema flourish. This doesn’t mean that Bollywood hasn’t had its share of controversy—they have—but sponsors are taking a more proactive approach towards what they want from sponsorship deals. To get sponsorship for movies successfully, think outside of your ordinary products and services, and be imaginative.