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Sambhar Mafia - Cooked To Kill!

Tuesday, July 12, 2005

TiS Breakeven?

Ma Foi Consultants’ K Pandiarajan has gone on record saying that Ilayaraja’s Thiruvasagam in Symphony received orders of 1.5 Lakh CD’s prior to the launch of the album (source: Business Today). In India, the CD was priced at Rs. 150 (Rs. 135 if you had bought it through ChennaiOnline). Based on some assumptions, I have worked out the following:-

Cost of CD (blank CD + CD production + printing of labels) = Rs. 25
Margin for the retailer (music shop) based on guestimates = Rs 35
Profit per CD = Rs. 150 – Rs. 60 = Rs. 90
Total profit so far = 150000 x Rs. 90 = Rs. 1.35 Crores

I have not considered overseas sales and sales of audio cassettes here.If you add in the numbers from the post launch sales, the profits could easily cross Rs. 1.5 crores. Based on this simple back of the envelope calculation I can say that Tamil Maiyam and Ilayaraja would have recovered the cost (Rs. 1.5 Crores). This overwhelming response should give them the confidence to work on such ventures in the future. Let’s hope Ilayaraja announces his next ‘mega’ project soon.

17 Comments:

  • hmmm...
    good for him and the tamil maiyyam people...
    :)

    neenga kanakku vaathiyaara??
    just kidding!

    :)

    By Blogger monu, at 5:12 PM  

  • Good Calc!

    By Blogger KARY, at 5:46 PM  

  • Now they will hesitate to release more data, if guys like you are waiting with the calculators.....

    Anyhow Kaps, you have posted an encouraging post for IR to come out with the next album. BTW.. have you ordered your copy already?

    By Blogger Ram.C, at 5:48 PM  

  • good that theyve made money, hopefully other people will make such attempts, tami music industry needs tat.
    i dont have a problem if they ee make a profit, cause there r ppl like me wh wudn lisen to it unless it is ithin kinda format, its actualy popularises the music

    By Blogger ada-paavi!!!!, at 5:56 PM  

  • ammma... bayangaramaana calculations...

    hmmmm... Ilayaraja adutha proj varuthu... keep ur cal-c s ready

    By Blogger Murali, at 8:56 PM  

  • When you count cost of production in CD cost.. are you talking about stamping of the CD or the creation of the master CD (recording, studio, et al) ?

    If it's the former.. then Rs 25 is way too much for those volumes. I would say it would be around 5-10 bucks.

    By Anonymous deepak, at 11:50 PM  

  • hey can u blog roll me..
    thanks

    By Blogger Packan, at 1:25 AM  

  • Good news, we might be getting a another oratorio or symphony soon.

    By Blogger sen, at 3:08 AM  

  • Good to hear that Raja is having some good time.
    BTW, pardon my ignorance. What kind of album is Thiruvasagam? Is it what he played in Symphony?

    By Blogger JaganLee, at 3:18 AM  

  • hey....u forgot overhead???.....thats a beast and always include that in your calculation.....imo, your profit can be reached, but not so soon....will take some more time :).....future revenue stream is where IL & co mint their money.....live performances and licenses .....what do u say?

    By Anonymous The mottai boss, at 3:56 AM  

  • good that they are able to recover the cost and make profits.

    By Blogger PVS, at 7:20 AM  

  • I wish IR does the "Thiruvembavai" songs.. But for God's sake not in symphony.. but using the same tunes and music in Hey Ram's "Vaishnava Janatho" song..

    By Blogger keerthi, at 10:58 AM  

  • You think so? Do you think they will? I'll be so happy if that happens.!

    A bold attempt - Good attempt as well.! For my part I bought it from www.tis-usa.com and I like it...! nothing super...but ...its ok.! I appreciate the approach and the efforts.

    By Blogger Narayanan Venkitu, at 11:52 AM  

  • I'd be happy if thiruvembavai happens as well - im waiting for the release of thiruvasagam here - launch is on 17th only :(

    By Blogger visithra, at 12:50 PM  

  • @Monu,
    My mom used to be a Maths teacher (when she started her career).

    @Kary,
    Thanx 4 dropping by

    @RamC,
    I'm getting my CD next week.

    @Vatsan,
    The success of this venture should perk up the music scene.

    @Optimist,
    Welcome back. I didn't use a Calc....just some small back of the envelope calculation.

    @Deepak,
    The cost which I mentioned in the blog will be the cost for manufacture of the CD (copying of CD, printing of labels etc). The major chunk of the 1.5 crores would be towards the artist fees and the recording theatre. Anyway it looks like they have recovered the money.

    @Packan,
    I hv blogrolled u.

    @Senthil,
    Let's wait for the good news.

    @Jaganlee,
    Thiruvasakam is an oratorio

    @Mottai Boss,
    What sort of overheads are u talking about. The major portion of the 1.5 crores would have been towards the Budapest Symphony Orchestra and the mixing they did in New york. the collections so far would have been sufficient to cover the same.

    @PVS,
    Good for them.

    @Keerthi,
    I think lot of people are requesting IR to do music for some of the ancient epics. Let's wait for his next project.

    @Venkitu Sir,
    I also appreciate the effort....I'll get to listen to it next week.

    By Blogger Kaps, at 2:48 PM  

  • Vaazhga Shivam. Valarga Avan Pugazh.
    Swahilya

    By Blogger Swahilya, at 4:37 PM  

  • Hmmm, Good calculation. Hope this will encourage IR to do other projects without a long break. Kaps write your review after hearing it.

    By Blogger வெங்கி / Venki, at 5:08 PM  

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