Uday Shankar, chief executive officer of Star India, and film director Karan Johar have signed a three-year production and distribution deal in which Fox Star Studios, Star’s studio vertical will join hands with Johar’s Dharma Productions to co-produce and distribute nine films.
The deal which is estimated to be worth Rs 500 crore, is expected to boast Dharma Productions’ blockbuster directors like Karan Johar, Ayan Mukherjee, Karan Malhotra and Abhishek Verman, among others, toplined with stars like Ranbir Kapoor, Aishwarya Rai, Shahid Kapoor and Alia Bhatt.
According to the deal, some films will be a co-production between Fox Star and Dharma, while others will be pure distribution. Revenues are usually split equally on coproduction, while on distribution they are on commission, which varies between 10-12.5%.
Karan Johar reportedly told a news agency, “I believe in relationships, bonds and vibes, and I connect with people. If I like them, I want to work with them which were the case here.” He further added, “Unlike what people believe, collaborations don’t dilute brands, in fact this is a profile and power deal, which we hope will bring back the falling footfalls to cinema halls.”
“This strategic alliance envisages the stakeholders pooling in their collective strengths and thereby chalking a new path for Bollywood, specifically in the way in which films are marketed and distributed. Consolidation through strategic alliances is the way forward in the film industry,” said Vijay Singh, CEO, Fox Star Studios.
Fox Star Studios began their Bollywood journey six years ago, with Karan Johar’s My Name Is Khan (MNIK), which was the first Indian film to open new markets in Europe and the Far East. It was in fact, released in 2010, across 60 countries and opened up many new markets and did a record Gross Box Office of $23 million in 2010.