Phars Films has acquired the overseas distribution rights for Shah Rukh Khan’s King in a historic deal. The company paid a minimum guarantee of Rs. 175 crore, replacing Yash Raj Films. This record-breaking amount shows huge confidence in the film, which must now perform well against major Hollywood releases globally.
There has been a significant change in the overseas distribution of Shah Rukh Khan's King. The film was originally slated to be released by Yash Raj Films, but Phars Films has now acquired the distribution rights.
Sources close to Phars reveal that the company has paid a staggering minimum guarantee (MG) of Rs. 175 crore, an unprecedented figure for an Indian film. To put that into perspective, no Indian film has previously fetched an overseas MG of even Rs. 100 crore, and here King has gone well over that.
These days most of the distribution deals in Bollywood go on a commission basis, where the distributor simply charges his fees/commission, without paying any surety/guarantee. YRF has previously distributed Jawan and Dunki internationally on the same model, and they were signed in for King as well. However, Phars made an offer too big and too good to be refused. King is the biggest Bollywood film ever made other than Ramayana, so this will go a long way in ensuring recovery for the film, taking away some of the risk from production.
Phars is expected to follow its usual distribution strategy by selling individual territories to sub-distributors while directly handling the Middle East, where the company is based. In fact, it is heard that they have already got a huge offer in Germany. Several of the territory distributors are expected to remain the same as they would have been under Yash Raj Films. The biggest changes will be in markets such as North America, the United Kingdom and the Middle East, where Yash Raj Films traditionally distributes through its own office.
To recoup such a massive investment, King will need to deliver an overseas gross in the region of Jawan and Pathaan, around USD 48 million. Since Phars is expected to sell certain territories at a premium, the effective recovery target could be closer to USD 50 million. That is not going to be an easy task, as King will also have to battle Hollywood tentpoles like Avengers: Doomsday, Dune Part 3, Jumanji 3 and others for showcasing during the lucrative Christmas-New Year window.
For now, Phars has placed great confidence in the KING.