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Siddharth Roy Kapur reveals that Bollywood's financial landscape is evolving, with top stars increasingly opting for profit-sharing models over hefty upfront fees. This shift allows producers to manage budgets more effectively, while actors benefit directly from a film's success, creating a win-win situation that is becoming more prevalent in the industry.
Producer Siddharth Roy Kapur, known for acclaimed films like Barfi!, Haider, and Dangal, recently shed light on the financial dynamics of Bollywood. He recently revealed that casting top stars in big-budget films often requires allocating 30–40% of the budget to their fees. However, he noted a shift in this trend, with many actors now opting to lower their upfront charges in exchange for a share of the film’s profits.Star Power Still Commands Big BudgetsSpeaking with CNBC-TV18, the producer explained that for big projects, actor fees can take up as much as 30–40% of the budget, a trend similar to Hollywood. He compared it to films like
Top Gun: Maverick
, where a significant portion of the budget goes to Tom Cruise because his presence guarantees a strong box office opening. Similarly, in Bollywood, the involvement of major stars like Salman Khan, Aamir Khan, Shah Rukh Khan, or Hrithik Roshan heavily influences the film’s financial structure and economics.
From Upfront Fees to Revenue SharingWhen questioned about whether top actors are taking salary cuts, Siddharth clarified that it’s not exactly a pay cut but rather a shift in payment structure. He explained that many actors are now opting to take a smaller upfront fee and instead share in the film’s profits, allowing them to benefit directly from the movie’s success. This move toward revenue-sharing is expected to become more common in the industry going forward.A Win-Win for Actors and ProducersSiddharth further explained that the current trend involves a two-part compensation model — a fixed fee built into the project’s cost and a share in the profits. By lowering the upfront fee, the overall budget becomes more manageable, and if the film performs well, everyone benefits. He noted this approach is becoming increasingly common in the industry.The seasoned producer highlighted that profit sharing is emerging as a significant trend in Bollywood, offering a win-win scenario — it not only eases production costs but also ensures greater financial rewards for both actors and producers when a film succeeds.
English (US)