Many companies are becoming like the film industry. Too much of the people costs are towards the ‘star’ – which leaves very little budget for other costs. Take a movie like Paa. It could NEVER have made money if Amitabh and Abhishek were to be paid market rates. However since it was a family made movie, it cost only Rs. 5 -6 crores. At this budget level it could make money.
However a movie like Black which cost Rs. 70 crores was a FLOP the day it was made, not the day it was released. It takes a foolish / stupid / brave man to sink Rs. 50+ crores and hope to make money. Kites and Ravaan were both big budget, expensive directors lavishly made movies. They were doomed. Surprisingly both K and R were funded by the same person :).
Look at business channels. Their cost of producing one program was so high, I was stunned. The new channels which have paid astronomical salaries to the ‘Anchors’ will struggle to make money – would love to see their P&L account. And to expect personal finance shows to generate TRP to justify salaries in millions of rupees is almost amusing. Frankly do not see any personal finance show being able to justify the astronomical costs. Also for a program to have repeat audiences, it has to be action oriented. In personal finance this is difficult. Want to see the P&L of ET Now, Cnbc TV18, Ndtv profit…to see whether any personal finance show CAN make money at all.
Not sure how the economy works, but to expect to get XX crores to do studio programs looks tough. If that has to be paid, ULIP will need to have 70% load AT LEAST. L O L.
No reason why a few of us should not take our video cameras out, record decent topics and put it on Youtube…any comments? Let us launch a ‘people’s channel’. After all asset allocation is asset allocation you do not need Katrina Kaif or Ranbir Kapoor – or their wannabes to tell you that, correct?
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