Why Should U Become a Bollywood PRODUCER - Part 1

A Radical, Up-side View
A movie is the best investment one can make for the up-side potential vs. the risk. They are better than real estate, blue chip stocks, gold, silver, precious stones, income-producing rental properties, futures treasuries, international currencies, etc., better than anything, with the possible exception of investing in your own education and spiritual enlightenment.

There simply is no business with manufacturing capital entry requirements as low as motion pictures where the potential return can be as unlimited over the short, medium and long terms. For instance, a movie such as HANUMAN, costing as little as Rs. 30 Million to produce and earned Rs. 120 Million and it does not stop earning money - for a lifetime. SATYA cost only Rs. 25 Million and grossed more than Rs. 150 Million,BHEJA FRY cost only Rs. 12 Million and grossed more than Rs. 100 Million, MAKDI, MY FRIEND GANESHA, IQBAL, KHOSLA KA GHOSLA, RETURN OF HANUMAN and many more some of it hasn't even hit home video or foreign yet. There are thousands of other examples where the return was at least three times anything done by securities listed on the Stock Exchange.


Hide the Gold
If you were hiking alone in the middle of nowhere and you found nuggets of gold in a river - too many to carry home in one trip - what would you do? Would you go into town telling everyone that you found gold and you need help carrying it? No, you would probably be a little reserved, perhaps even nepotistic and tell only your family and closest friends.

This, in part, is not unlike the movie industry for how many products do you know that can be built from scratch for Rs. 20 Million and earn Rs. 100 Million? For those in the know-how and those in the loop (spelled "Bollywood Insiders" or "The Club" or the "Control Group"), movies are excellent investments - and the same would just as rather have that fact obscured. Ironically, that little phrase: "THESE SECURITIES INVOLVE A HIGH DEGREE OF RISK" is very convenient to The Club, even if it is required under security laws. Human Beings have been known to hide the gold, or make it unsafe to enter the "FORBIDDEN" zone. More often than not, people who are very wealthy dress modestly or like slobs.

Why Movies Are Good For Commerce?
Although it is recognized that, low budget features are less than Rs. 5 Crore, for the examples here, low budget feature will be defined as less than Rs. 3 Crore, medium budget up to Rs. 10 Crore and high budget anything over that.

• Low Budget Feature’s Track Record
  Low budget features track record has always been good. But lets us look at the worst scenario for your first feature, and suppose you made a disaster and collected around 70% of the investment throughTHEATRICAL RELEASE. 
  
  Next and a Bollywood special earning source is MUSIC RIGHT. This generate around worst to worst 10%of your total investment. But if your music is good then sky is the limit.
  
  Next earning source is a DVD/CD RIGHT. A feature is released on Video CDs after the initial theatrical run. Even if revenues generated in this medium are only 10% (although they are now even much more) of your investment.
  
  Next release is SATELLITE (such as ZEE CINEMA, STAR GOLD, SATMAX and many more) and this market earns over 15% of your investment. Pay-per-view (such as found in motels, hotels and resorts) is the next market although its bit low in our country but the future prospect for this is very good still we are not considering this business.
  
  When these four markets are added up and the upsides and downsides are averaged, we get a bottom line figure of 105% for each low budget feature. This is the Short Term gross return which can be collected in 6 months.
  
  Syndication, the selling of a movie to each of the thousands of individual television stations across domestic U.S., Canada and abroad, (with English subtitles or dubbed in English) is a form of exhibition that may proceed for 15 years or longer. This can, and usually does, generate about 20% of what theatrical revenues were and ordinarily commences about 2 years after release in the cable markets. Any film, no matter how bad or good, can be syndicated - as you can readily illustrate to yourself by taking a look at some of the films on local late-night TV.
  
  Additionally, none of the above revenues include network or Ancillary sales which can be immense if your film is a KID’s FILM. Take a look at the toys generated from HANUMAN, KRISHH, BAT MAN, SPIDER MAN, TEENAGE MUTANT NINJA TURTLES, etc. Thus the above data indicates that the total long and short term gross for one feature motion picture is estimated to be 125% over a 2 year period. Remember we are talking about a MAJOR DISASTER OR FLOP but if your project is MEDIOCRE than these figures can be double say around 250% and if your project is a HIT than these figures can go up to four times say around 500% and if it is SUPER HIT or MEGA HIT than you better calculate yourself.

>>> Read Part 2