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I am a tutor. As a tutor, I like to understand the psyche of each and every child. Analyse each one's strength, weakness and try to reduce his/her weakness. I am a big fan of Warren Buffett & Charlie Munger.

Tuesday, 29 November 2016

Rock On 2 movie review - The financial way

               "Rock On 2" movie featuring Farhan Akhtar in the lead role was expected to replicate the success of "Rock On" movie released in 2009. However, it turned out to be a fiasco at the box office. Let me analyze the movie from the spectacle of a financial analyst. Behind every failure or success, there cannot be a single reason responsible just as one particular factor cannot make a stock "Multi-bagger". When various factors are in favor of a company such as competitive strength, demand for its product in the future, sustainable business model etc. only then stock touches new highs.

               The same concept also applies to movies. Although, demonetisation played a role in preventing the people from watching movie but that was not only the reason. I feel the fundamentals of the movie were poor. Fundamentals hereby mean, the story-line. Concept of the movie was not great at all simply because it lacked prudence. While "Rock On" movie's story was around 4 friends, their band and taking their music band to the global level forgetting their animosity. One could easily link its story to the real life. However, "Rock On 2" movie's story moved around escape of Farhan Akhtar from the sin and its repentance. According to the movie, Farhan Akhtar thought he committed a sin by not listening to the song of Shraddha Kapoor's brother at the right time which forced him to commit a suicide. Shraddha Kapoor's brother met Farhan several times requesting him to listen to his song. To me, it sounds imprudence because it's not possible for a person to ask for a work from only one person. A person during his struggle asks for work from many people. But this was not the case here. Kapoor's brother only knocked at the door of Farhan.

               Second important reason for failure of this movie was escape of Farhan Akhtar from Mumbai to Shillong just because he committed a sin and engaged himself in a social activity. A person cannot run away from the problem. Finally the help from social networking sites to ask for alms from the people around the world to provide basic necessities to the people of a village in Meghalaya. The film was revolving around various stories : Farhan's sin , his social service, fire at a village in Meghalaya, help from the people.I also felt the movie lacked a smooth transition from going into the next story.

                                         
                           Particulars                      Amount (in Rs.)

                           Investment                     45 crores        

                           Box office                      13.2 crores

                           NPV                               -31.8 crores

                           P.I.                                   0.29

                                                                                       (Source : IMDB)
                                                                                       (NPV = Net Present value)
                                                                                       (P.I. = Profitability Index)

                                   
               The above mentioned financial terminologies are used to determine whether a  capital budeting project should be accepted or not. However, I used the above mentioned techniques ex-post.Even if any financial manager was asked  whether a film based on the above story should be made, his answer would have been no different.

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