Profit sharing helps 'Parasakthi' avoid losses despite ₹150cr spend
Parasakthi, the Tamil film that hit theaters during Pongal, managed to avoid losses financially, even after facing last-minute censor issues.
Despite spending ₹150 crore and making only ₹85 crore at the box office, the producers avoided losses by using a profit-sharing model.
Instead of paying actors like Sivakarthikeyan huge sums upfront, they split payments so everyone benefits if the movie does well.
Rajinikanth inspired model makes actors stakeholders
This model, inspired by Rajinikanth's way of working, turns actors into real stakeholders and eases pressure on budgets and loans.
Producer G Dhananjayan points out that it lets filmmakers take more creative risks since financial stress is lower.
Plus, when actors are involved in money talks and promotions, like Jiiva taking on both acting and creative producer roles, it builds trust and keeps everyone invested in making the film succeed.