Decoding Rangoon: One of the biggest loss makers of all time

Rangoon has proved to be a major disaster at the box office, as several shows of the film have got cancelled in its first week. The movie which opened at a collections close to Rs 6 crore recorded an opening weekend of Rs 17.47 crore.

The film crashed on Monday as the numbers came down to as low as Rs 1.50 crore followed by a further drop on Tuesday and Wednesday. The Shahid Kapoor – Kangana Ranaut film will go down in the books as one of the biggest disasters of all time joining the likes of Bombay Velvet, Mirzya and Broken Horses. The film will be discontinued from theatres in its second week and is looking to end at collections close to Rs 23 crore.

The film was made on a huge budget of Rs 60 crore and producer Sajid Nadiadwala sold it to Viacom 18 for Rs 67 crore thereby entailing a table profit of Rs 7 crore. The studio invested Rs 13 crore towards print and publicity which takes the landing cost of Rangoon at Rs 80 crore.

The theatrical share of Rangoon will be lower than the print and publicity expense which explains the magnitude of disaster. Even the ancillary income would not be that high for Viacom 18 as a film like Rangoon would never fetch good amount for satellite and the studio will screen the film on their in-house channel, Colors.

Economics of Rangoon (For the studio):

• Cost of acquisition: Rs 67 crore
• Print and Publicity: Rs 13 crore
• Landing Cost: Rs 80 crore

Revenue:

• Distributors Share: Rs 11 crore (Expected)
• Overseas Share: Rs 4.00 crore (Expected)
• Ancillary Sources: Rs 15 crore (Satellite + Music + Home Video)
• Total Revenue: Rs 30 crore
• Loss: Rs 50 crore
• Loss on Investment (%): 62.5%

Rangoon is yet other film wherein the individual producers made profits but the studios lost almost their entire invest.