Calculation details for Jr. Ntr
Step #1 - Historical movie details for Jr. Ntr
| No |
Movie |
Year |
Tamilnadu Collection |
Domestic Collection |
Overseas Collection |
Total Collection |
| 1 |
Janatha Garage |
2016 |
84.50 |
107.40 |
17.71 |
125.11 |
| 2 |
Nannaku Prematho |
2016 |
54.00 |
66.59 |
17.29 |
83.88 |
| 3 |
Jai Lava Kusa |
2017 |
89.50 |
108.82 |
15.21 |
124.03 |
Step #2 - Adjust collections based on inflation rate
We all know that movie ticket prices aren't what they used to be. The cost of consumer goods and services rise each year. So, taking inflation into account is the only way to meaningfully compare the box office collection of movies over time.
Ideally we should use India inflation rate for adjusting box office collection in India and inflation rate from respective countries for overseas collection. For simplicity, our calculations assume US inflation rate as the basis for adjusting the box office collection of all overseas countries.
We also take into account the currency rate change over a period of time to accurately calculate the present box office collection values of historical movies.
Step #2a - Collect data to calculate inflation (courtesy www.worldbank.org, www.wikipedia.org/)
| Year |
India Inflation Rate |
India CPI (Consumer Price Index) |
| 2016 |
4.97 |
154.99553977 |
| 2017 |
0.8 |
156.235504088 |
| Year |
US Inflation Rate |
US CPI (Consumer Price Index) |
| 2016 |
1.3 |
110.108766386 |
| 2017 |
2.5 |
112.86148554565 |
| Year |
Average US Dollar to Indian Rupees Exchange Rate |
| 2016 |
67.26527 |
| 2017 |
67.69355 |
Step #2b - Apply inflation
Present box office collection value of historical movies is calculated by using a simple formula:
Collection(y) = ( CPI(y) / CPI(x) ) * Collection(x)
where "x" represents historical CPI and box office collection values and "y" represents current values.
Example domestic calculations for Janatha Garage
- Janatha Garage release year
- 2016
- 2016 CPI value
- 154.99553977
- Current CPI value
- 156.235504088
- India collection in 2016
- 107.40 Cr
- Inflation adjusted collection
- (156.235504088 / 154.99553977 ) * 107.40 = 108.26Cr
Example overseas calculations for Janatha Garage
- Janatha Garage release year
- 2016
- 2016 CPI value
- 110.108766386
- 2016 USD to INR exchange rate
- 67.26527
- Current CPI value
- 112.86148554565
- Current USD to INR exchange rate
- 67.69355
- Overseas collection in 2016
- 17.71 Cr = 17.71/67.26527 = $2.63MM
- Present value of collection USD
- (112.86148554565 / 110.108766386 ) * 2.6328594235926 = $2.70 MM
- Present value of collection INR
- $2.70MM * 67.69355 = 18.27 Cr
Total Janatha Garage collection in 2016 = 107.40 + 17.71 = 125.11 Cr
Present value of Janatha Garage collection = 108.26 + 18.27 = 126.53 Cr
Step #2c - Calculate present value of collection based on inflation for all movies
| No |
Movie |
Year |
Inflation Adjusted Tamilnadu Collection |
Inflation Adjusted Domestic Collection |
Inflation Adjusted Overseas Collection |
Inflation Adjusted Total Collection |
| 1 |
Janatha Garage |
2016 |
85.18 |
108.26 |
18.27 |
126.53 |
| 2 |
Nannaku Prematho |
2016 |
54.43 |
67.12 |
17.84 |
84.96 |
| 3 |
Jai Lava Kusa |
2017 |
89.50 |
108.82 |
15.21 |
124.03 |
Step #3 - Calculate expected collection based on weightage
For calculating expected collection for an actor, we give appropriate weightage to the movies based on several factors. The weighted average is used to calculate the expected collection of an actor.
| No |
Movie |
Year |
Inflation Adjusted Total Collection |
Weightage |
Collection * Weightage |
| 1 |
Janatha Garage |
2016 |
126.53 |
3.00 |
379.58 |
| 2 |
Nannaku Prematho |
2016 |
84.96 |
1.00 |
84.96 |
| 3 |
Jai Lava Kusa |
2017 |
124.03 |
3.00 |
372.09 |
|
Total |
|
|
7 |
836.63 |
Total expected collection for Jr. Ntr = 836.63/7 = 119.52 Cr