SRK's 'King' sells overseas rights for whopping ₹175cr
What's the story
In a surprising turn of events, Phars Films has secured the overseas distribution rights for Shah Rukh Khan's upcoming film King. The deal was initially set to be finalized by Yash Raj Films (YRF), but Phars reportedly made an offer too lucrative to refuse. The company has paid a staggering minimum guarantee (MG) of ₹175cr, breaking records for Indian films, Pinkvilla reported. King is set to hit theaters on December 24.
Distribution shift
Know more about the deal
Bollywood distribution deals are usually done on a commission basis. The distributor charges a fee without any guarantee.
YRF had previously distributed SRK's Jawan and Dunki internationally on this model and was also signed for King.
However, the record-breaking offer from Phars Films has changed the game.
The upcoming action film also stars Suhana Khan, Rani Mukerji, Abhishek Bachchan, and Deepika Padukone.
It's directed by Siddharth Anand.
Distribution strategy
Phars likely to stick to its usual distribution strategy
According to Pinkvilla, Phars Films is likely to stick to its usual distribution strategy of selling individual territories to sub-distributors while directly handling the Middle East.
The company has already received a huge offer in Germany.
Several territory distributors are expected to remain unchanged from what they would have been under YRF, with major changes in North America, the United Kingdom, and the Middle East.
Recovery target
'King' will have to compete with big Hollywood films
To recover the massive investment, King will have to rake in an overseas gross of around Jawan and Pathaan, which is approximately $48 million.
However, with Phars expected to sell certain territories at a premium, the effective recovery target could be closer to $50 million.
This won't be easy, as King will face competition from Hollywood blockbusters like Avengers: Doomsday, Dune Part 3, and Jumanji 3 during the lucrative Christmas-New Year window.