Salman Khan Conviction Could Hurt Bollywood At the Box Office, Bollywood superstar Salman Khan’s five year prison sentence could cost the India film industry millions, analysts say, as one its most prolific actors is forced to abandon his many movie and television projects and endorsement deals.
Mr. Khan Wednesday was found guilty of culpable homicide in a hit-and-run incident that killed one person and injured four in Mumbai more than a decade ago. His lawyer said he is innocent and plans to appeal the verdict.
With more than 100 feature films and TV shows under his belt, Mr. Khan, 49, is one of the go-to stars of the Hindi movie industry. Some years his movies account for as much as 15% of the revenues made on films in India, estimates Shailendra Singh, joint managing director, Percept Ltd., a Mumbai-based entertainment, media and communications company.
The industry recorded around $1.9 billion in revenues last year, according to an industry report from consultancy firm KPMG.
Jehil Thakkar, head of media and entertainment at KPMG s said Mr. Khan’s conviction could lead to losses of between $30 million and $50 million as his projects are put on hold.
“Whatever films he was working on currently will obviously get impacted,” Mr. Thakkar said.Mr. Khan also earns a lot from TV–for example he is the host of the Indian version of the “Big Brother” reality show called” Bigg Boss”—and he rakes in the rupees doing ads for everything from Thums Up cola and Suzuki Motor Corp. motorcycles to Dixcy Scott underwear and Astral plastic pipes.
“He will definitely face a massive financial loss by not being able to be available for television reality shows, public appearances and endorsements,” said Mr. Singh.
The Coca-Cola Co., which owns the Thums Up brand, said it is contemplating the next course of action. “We hold the court verdict in the highest regard. We are evaluating the next steps,” Coca-Cola said in a statement Wednesday.
The Bollywood star also runs his own health and education nonprofit called the Being Human Foundation.
Initial stock reactions reflected the impact. Following Wednesday’s court verdict, stocks of Mandhana Industries Ltd. – which makes Being Human Foundation branding clothing fell, as did the shares of Eros International, the distributor for Mr. Khan’s upcoming movie “Bajrangi Bhaijaan.”
There could eventually even be a knock-on effect on movie theaters such as Inox Leasure Inox Leisure Ltd. and PVR Cinemas, analysts said
Of course like every Bollywood film, this tale may well have a surprise ending. Mr. Khan bail could be extended allowing him to go back to work as he waits for his appeal to be heard. The verdict or the sentence could be changed in the next trial.
“As we have seen in the past, the actors can come out on parole and finish their pending shoots for the commercials and movies,” Sunil Pachisia, the vice-president of Pratibhuti Viniyog, a brokerage firm in Mumbai.
Mr. Khan Wednesday was found guilty of culpable homicide in a hit-and-run incident that killed one person and injured four in Mumbai more than a decade ago. His lawyer said he is innocent and plans to appeal the verdict.
With more than 100 feature films and TV shows under his belt, Mr. Khan, 49, is one of the go-to stars of the Hindi movie industry. Some years his movies account for as much as 15% of the revenues made on films in India, estimates Shailendra Singh, joint managing director, Percept Ltd., a Mumbai-based entertainment, media and communications company.
The industry recorded around $1.9 billion in revenues last year, according to an industry report from consultancy firm KPMG.
Jehil Thakkar, head of media and entertainment at KPMG s said Mr. Khan’s conviction could lead to losses of between $30 million and $50 million as his projects are put on hold.
“Whatever films he was working on currently will obviously get impacted,” Mr. Thakkar said.Mr. Khan also earns a lot from TV–for example he is the host of the Indian version of the “Big Brother” reality show called” Bigg Boss”—and he rakes in the rupees doing ads for everything from Thums Up cola and Suzuki Motor Corp. motorcycles to Dixcy Scott underwear and Astral plastic pipes.
“He will definitely face a massive financial loss by not being able to be available for television reality shows, public appearances and endorsements,” said Mr. Singh.
The Coca-Cola Co., which owns the Thums Up brand, said it is contemplating the next course of action. “We hold the court verdict in the highest regard. We are evaluating the next steps,” Coca-Cola said in a statement Wednesday.
The Bollywood star also runs his own health and education nonprofit called the Being Human Foundation.
Initial stock reactions reflected the impact. Following Wednesday’s court verdict, stocks of Mandhana Industries Ltd. – which makes Being Human Foundation branding clothing fell, as did the shares of Eros International, the distributor for Mr. Khan’s upcoming movie “Bajrangi Bhaijaan.”
There could eventually even be a knock-on effect on movie theaters such as Inox Leasure Inox Leisure Ltd. and PVR Cinemas, analysts said
Of course like every Bollywood film, this tale may well have a surprise ending. Mr. Khan bail could be extended allowing him to go back to work as he waits for his appeal to be heard. The verdict or the sentence could be changed in the next trial.
“As we have seen in the past, the actors can come out on parole and finish their pending shoots for the commercials and movies,” Sunil Pachisia, the vice-president of Pratibhuti Viniyog, a brokerage firm in Mumbai.
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