Box office collections: Top 5 in Bollywood monopolise earnings; but Dangal, Gadar, DDLJ numbers show worrying trend

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New Delhi | Published: October 9, 2017 5:48:41 AM

The winner takes it all or rather in Bollywood the winners take it all. An analysis of the Box Office (BO) performances of 300 plus films over a decade shows how skewed the BO is in favour of the top five movies. While these clocked a compounded annual growth of10%+ in the last five years, collections for the next 20 films were more or less flat.

Box office collections, Top 5 Box office collections, best movies on box office, Dangal, Gadar, DDLJCollections for the crop of films ranked 6-25 have remained flat between CY2012-17. (Twitter)

The winner takes it all or rather in Bollywood the winners take it all. An analysis of the Box Office (BO) performances of 300 plus films over a decade shows how skewed the BO is in favour of the top five movies. While these clocked a compounded annual growth of10%+ in the last five years, collections for the next 20 films were more or less flat. Kotak Institutional Equities says the top five films would have walked away with the bulk of the BO between CY12-17 with collections in the home market growing at 13%+ compounded. In sharp contrast, the rest of the films are believed to have fared poorly. Between CY2007-12, the BO collections for the top five grew at a compounded 16%, while for the next lot –ranked between 6 and 25—they grew at 19%. For the top 25, they grew at 18%

Collections for the crop of films ranked 6-25 have remained flat between CY2012-17. Assuming an increase in ticket prices of a compounded 5%, this would mean footfalls for the non-top 5 Hindi films were lower. The brokerage concludes that moviegoers are watching fewer films in the theatres.

One reason for this is that many films are now screened on television or digital channels very soon after the theatrical release. Another reason is that ticket prices have risen sharply as has the cost of food and beverages. Moreover, rampant piracy has provided access to films.

Citing industry estimates, the brokerage notes that while footfalls for the recent Bollywood blockbuster Dangal were about 37 million whereas Gadar released in 2001 saw footfalls of about 50 million and Dilwale Dulhania le Jaayenge, released in 1995, close to 48 million. In fact, the number of films that raked in a net collection of Rs 100 crore stayed flat at between 8 and 10 over the past five years. At a broader level, it is the increase in ticket prices, over the years, which has pushed up BO collections. With around 200-250 movies released every year, Bollywood contributes approximately 40% to total BO collections in the country; the top 5/25/50 films contribute 35%/80%/95%, respectively.

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