Looks like 2013 is going to be a good year for Bollywood.
If industry insiders are to be believed, the A-listers are expected to double their rates in the New Year.
According to a Mumbai daily, event organisers in the city claim that A-list actors who were available for roughly INR 13 lakh (approximately USD 23,000) a minute in 2012, could double the rates in 2013.
With so many movies making it to the elitist INR 100-crore (approximately USD 18.2 Million) club, this hike was inevitable.
The rates are for “appearances” and “performances”.
Detailing what each category entails, an Indian newspaper quoted an events manager as saying, “One is, where actors put in an appearance for a cause – either charity or to give away an award. In such cases, they don’t charge a fee and are usually content with a high level of hospitality.
“The second category is where most A-listers charge an astronomical sum for performing at weddings and other events.
“The last (category) is where they only grace the event and their charges are considerably lower.”
According to reports in the Indian media, while the going rate for actors range between INR 13 and 15 lakh a minute, stars like Shah Rukh Khan and Salman now charge INR 8-10 crores (approximately USD 1.6 Million) for an hour-long performance.
The rate, however, is determined depending on the relationship of the Bollywood star and the event organiser.
An Indian daily even got a Dubai-based event manager to endorse the rates. “For established heroes, the amount ranges from INR 8-10 crore for an hour long show.”
Chalking out the rates for the other categories, he elaborates, “Anybody who can draw a crowd gets paid INR 1 crore (approximately USD 180k)for an hour's performance. That's how much Sunny Leone got paid for performing in Delhi this year.”
The established actors apparently demand about INR 3-4 crore (USD 650k) per hour.
In fact, Kareena Kapoor or Katrina Kaif charge nothing below INR 5 crore (USD 900k).
The downside, however, is for event managers who claim they are unable to make any profit from such events.
The owner of one of India’s largest event management companies claims they don’t make much money from such events. “The spiralling costs of stars are putting a lot of pressure on my margins, especially when they are so visible during film promotions, etc. This is the reason you will find star-studded events in India are at an all-time low.”
There have also been allegations of tax evasions, with organisers paying stars part of their payment in cash. “It is true many organisers offer you a part of your payment in cash to perform. It is up to you to ensure that everything is transparent and you file your taxes accordingly. I know a lot of people who don't keep a record,” a reputed singer told Mumbai Mirror.
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