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Debating & Clarifying the Myths of Indian Movie Budgets to arrive at a conclusion of what is a better option for an Investor.

There is an ongoing debate whether one should make small budget movies or bigger ones. Sometimes the so called biggies keep commenting that investors should stay out of investing in small budget films and they claim that they go into loss and people are lease interested to watch them. Is it really true ? Or is there a motive behind that comment ? Do they fear new talents coming in and grabbing the upcoming week's shows ? Do they wish to eliminate future competition ? Lets do some litmus test on what has been profitable in the past decade.

When compared to small budget films (30 L to 3 Cr), producing micro budget films (under 30 L) intelligently is a much better option to test the waters, learn the trade, retain the rights, learn actors psychology, understand real market potential and value for each segment, monetise forever and break even within 2 to 3 yrs atleast. 

Micro budget is way better than small budgets. Investment less than 30 Lakhs. This is the maximum recoverable amount even if they invest above 30 Lakhs to 3 Cr which is called as a small budget movie. Hence micro budget movies are a better bet. 

But to do in under 30 Lakhs it takes extraordinary learning and hard work & marketing efforts.

We should also debate why people should not produce big budget films as well. Note : 7 out of 10 big budget films also go into loss. 

Investing 30 crores and recovering 15 cr is not an achievement to claim that big budgets are better than small budgets. It’s even more horrible. 

So if you see the average,  small budgets and big budget movies failing are same percentage of different values.  But the loss amount is bigger in a big budget films.

So is it better to produce micro budgets than big budgets or small budgets ?

Should investors should stop investing in big budget movies ?

Are Mega budget films above 30 cr are an exception ? Actually No. They put the whole burden and transfer the loss to the buyers transferring hands from many levels of more buyers 😂. Even though it sounds profitable to the producer at that time of release or during the first few weeks, it is also not morally right just because some one pays for it. It’s a greed driven on both sides to see whose gamble is a winner. Not something to be Proud of.

So big budget filmmakers should never again says small films go into loss. Big films go into bigger loss equally on the ratio. Mega Budget films transfer the loss to another human.

Dear Investors, choose wisely ! It's better to invest on niche unique stories & new talents waiting to bloom to create an industry than just businesses. That's the way to grow a healthy environment. That is when the myth of the mega market value falls to it realistic levels.

An Article by Arunkanth, Filmmaker / Entrepreneur.

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