RGV Business Model Decoded

Maverick director Ram Gopal Varma is churning out films despite he failed to deliver even a single hit at the box office. Though analysts and movie lovers have been trolling RGV for the below standard pathetic films, he is making back to back films. This is making many people wonder how Ram Gopal Varma who delivered last hit 12 years back is able to come with films.

Movie lovers still rave about RGV's Rangeela and Satya and his last hit was Phoonk in B-Town in 2008. The film made with a budget of Rs 8crs got Rs 14 crs collections. He made 50 films in Bollywood and has only one blockbuster and four genuine hits. Two of them were semi hits and 9 were average grossers. This shows that 34 films of his were disasters.

RGV Film Factory can be branded as a DUD factory and the losses can affect the distributors, producers and actors. RGV Ki Aag made in 2007 grossed just Rs 7cr while its budget was Rs 21crs. Naach and Nishabdh turned out to be diasters and analysts attacked even Amitabh Bachchan for the big mistake. His films James, Mr Ya Miss, My Wife's Murder left without a trace. Only David Dhavan had flops like RGV. While he directed 43 films , he fared better than RGV as he got 23 hits.

Analysts say RGV is passionate about movies. A Marathi filmmaker, Akshay Bardapurkar says movie financiers believe that Varma can delier a good film. RGV promises exhibitors, distributors and producers profits and financiers believe that they should get their money back. This is what makes RGV collaborate with top studios like 20th Century Fox for three films like Ek Hasina Thi, Mai Madhuri Dixit Banna Chahti Hoon. The films tanked at the box office in 2002.

RGV managed to team with Adlabs in 2005 and came with RGV Ki Aag. RGV teamed with K Sera Sera in 2003 and came with films like Darna Mana Hai, My Wife's Murder, James, Gayab, Ab Tak Chappan, Naach etc. But following flops it severed ties with him in 2006. Trade analyst says producers who is investing money will not make huge losses as they minimise it by selling it to distributrs. Though RGV Ki Aag turned out to be a disaster making 16crs losses, Ad Labs Films and RGV did not suffer much losses as the film was sold to the distributors.

RGV has control over the budgets and he comes with films with Rs 4-5crs budget which is very less compared to Rs 60-80crs projects being made in Bollywood and regional langauges. RGV uses natural lighting which brings down the production cost drastically and also the number of people at the shooting spot. RGV revealed how he shot a death scene on Mahim Bridge in Mumbai with just 3-4 people and two cameras without rotatable eye piece for the shot. Cameraman would run behind the actors for the shoot. RGV made small films even when he made big budget films which other filmmakers do not do.

Making bilingual films reduces costs and producers get access to other markets also. RGV now understood the potential of OTT and he made good profits with films like Climax, Nangaa and Power Star. He also stays relevant by courting various controversies.