Dr. Rohit ji…Phantom digital has acquired Distribution rights at 17 Cr for Overseas territory…These rights are sold to “Hamsini Entertainment” who further sold it to other country specific distributors barring USA
Coming to your question on will Phantom digital receive any profit share from collections too.
Since the deal is on a “Minimum Guarantee / MG” basis, we need to understand little bit on this type of deal. The MG deal comprises of two parts.
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Part A, is the initial amount along with the profit percentage which the seller/ Phantom would seek and to be paid in total before movie release.
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Part B, is basis the actual collections for that territory. In our case it will be basis “Overseas territory” collections only. Profit is shared if the collections for this territory cross certain threshold limit
Generally, MG deal is done to minimise the risk between the buyer and seller.
On Part A collection…During EGM meeting for QIP, Bejoy / CFO mentioned that they had already received 50% amount and the remaining amount will be received before movie release. Since the movie is already released we can assume that they would have got 100% payment by now.
On Part B collection and profit sharing… movie has got a good talk especially VFX portion…it is running successfully all across, with collections increasing day by day…even today 15th being a holiday in TN and I guess in USA too collections are increasing compared to Sunday… 16th TN collections will be high again as most of the theatres are already sold out or fast filling and more shows getting added but Overseas would drop and pick again in weekend
My view is that Phantom digital wasn’t looking to make huge profits out of it as their main intention was to showcase their VFX capabilities to the world, but the project got into financial trouble as one of the producer (24AM Studios) moved out and Phantom got in to support other producer (KJR Studios) from financial challenges so that the movie gets released and they will be able showcase their work…I guess they have achieved what they wanted with flying colours, the feedback on VFX is highly positive all across and is also acting as a strong contributor to overall movie’s success
Having said that, at this stage we don’t know the profit margin for part A and threshold limit plus profit sharing percentage for part B
I believe Phantom would not have sold it at cost for sure…for Part A, they might have taken a profit percentage anywhere in the range of min 10 to max 35% (inline with company’s profit margins) and would have left the remaining profits for part B which if it comes would be an added bonus
We can get more clarity on part A profit percentage and part B threshold limit details during Q3 concall (request callers to please ask these questions)
Part B portion will be realised only after Telugu and Hindi releases, probably in another month or so …I guess this would add another 50-100% above the final Tamil overseas collections
In short, PhantomFX is already in profit and received their money… profits from overseas collections if any will be an added bonus
D: Invested and positive on VFX Industry
