Shah Rukh Khan’s Zero Distributors Will Be Able To Claim a Refund From the Producers If the Movie Tanks at the Box Office

Shah Rukh Khan's Zero is expected to end this year with a band. Directed by Aanand L Rai, the film will hit the screens on December 21 and it's touted as a big Bollywood release. While we are still waiting for its trailer release, Zero's distribution rights are already sold at Rs 100 crore. Yes, as per a report in Bollywood Hungama, the All India Distribution Rights of this film are being sold to the distributors in the ratio of Rs 100 crore share, which means that the aggregate value of the distribution rights of all circuits if taken together will be around Rs 100 crore. Shah Rukh Khan's Zero Trailer to Release on November 2.

The interesting point to note here is the fact that Zero distribution rights have been sold on an advance basis. This means that the distributors can claim a refund from the movie's producers if the film tanks at the box office. However, if the film makes any good business more than Rs 100 crore then all the extra business will be shared by Red Chillies Entertainment at a predetermined ratio of 85% in favour of the producers.

Usual films are on MG – Minimum Guaranty Basis, but the advance basis is a safe way of doing business as the loss doesn’t really lie on any single party. SRK's Jab Harry Met Sejal was sold for Rs 85 crore MG and Dilwale was sold of approximately Rs 130 crore MG. The reason why Zero fetched a sum of Rs 100 crore MG is because Rohit Shetty's Simmba will hit the screens within one week of its release. Shah Rukh's drama will just have one free week to dominate the box office. Shah Rukh Khan Made Sure That Zero Was an Enjoyable Process, Here's How!

Pen Marudhar Cine Entertainment have managed to bag the distribution rights of the film for Delhi, UP, Rajasthan, Punjab, CP and CI for an approximate sum of Rs 43 crore. PVR Pictures has acquired the Mumbai Circuit Distribution rights for approximately Rs 32 – 34 crores whereas SVF Films have got the rights for West Bengal Circuits. Yash Raj Films will distribute the film at international markets like USA, UK and UAE.

(The above story first appeared on LatestLY on Oct 27, 2018 09:41 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).