The whole idea behind this write up is to make each and everyone understand the complex box office model in India. Any questions, please ask in the comments section below.
Producer: The person who invests in films. The money that a Producer invests in making a film is called the “Budget”. It includes everything from remuneration of the actors, technicians and other crew members to transportation and other costs. Apart from this, once a film is complete, it has to be marketed and that calls for “PA (Promotion & Advertisement)” expenses.
Distributor: The Distributor forms the most vital link in this money chain by acting as a medium between Producers and Theatres. The Producer has to deal out their film to the All India Distributors. The price at which the producer sells his film to the distributors is termed as “Theatrical Rights”. The producer can either directly sell the Theatrical Rights to Distributors or make a contract with any Third Party which in turn has the responsibility to deal with Distributors. In that case the Producer will get his share from the third-party even before his film releases and all Profit/Loss will be incurred by third-party only. For example, Yash Raj Films distribute their films themselves, while Nadiadwala Grandson’s had a contract with EROS for Housefull 2. Indian film industry is majorly distributed in 14 circuits and each have its distributors to represent them :- Mumbai, Delhi/UP, East Punjab, CI (Central India), CP Berar (Central Provinces), Rajasthan, Bihar, West Bengal, Nizam, Mysore, Tamil Nadu, Assam, Orissa and Kerala.
Exhibitor (Theatre): In layman terms, Exhibitor is nothing but a theatre owner. The theatres form the end of the box office model. On pre-defined agreements with the exhibitors, the distributors hire their theatres to showcase films. There are two types of theatres in India: (i) Single Screens (ii) Multiplex Chains and both have different kind of agreements with distributors. This agreement focuses mainly on “Number of Screens” and “Monetary Returns” to be paid back by theatres to Distributors. Entertainment Tax (All India average of 30% approx) is deducted from the total collections at the ticket window. This tax is enforced by individual state governments and thus differs from circuit to circuit. After taxes, a percentage of the total nett gross is paid back to the Distributors. This return is known as “Distributor Share”.
Box Office Terminology:
- 1) Cost of Film = [Budget + PA (Promotion & Advertisement) Expenses]
- 2) Non Theatrical Revenues = Satellite Rights + Music Rights + Overseas subsidy etc.
- 3) Footfalls = Total number of tickets Sold
- 4) Gross Collections = Total money collected from ticket sales
- 5) Net Collections = [Gross collections – Entertainment Tax and others]
- 6) Distributor Share is generally calculated as below:
| Week 1 | Week 2 | Week 3 | Thereafter | |
| Multiplex | 50% | 42% | 37% | 30% |
| Single Screens | 70-90% | 70-90% | 70-90% | 70-90% |
This means 50% of the collections (after entertainment taxes) goes to the Distributor in the first week of release and so on.
- 7) Profit / Loss (Distributor) = [ Amount at which film was bought – Distributor Share ]
Let us now go through a scenario to better understand about these terms.
Case Study – Suppose a film releases with an average ticket price of Rs 120 at Multiplex and Rs 60 at Single Screens in Week 1. 100 people visit a multiplex and single screen each. Entertainment Tax to be deducted from gross collections is same as 30%.
| Multiplex | Single Screen | |
| Footfall | 100 | 100 |
| Average Ticket Price | 120 | 60 |
| Gross Collection | 100 * 120 = 12000 | 100 * 60 = 6000 |
| Entertainment Tax | 0.3 * 12000 = 3600 | 0.3 * 6000 = 1800 |
| Net Collection | 12000 – 3600 = 8400 | 6000 – 1800 = 4200 |
| Distributor Share | Fixed 4200(50% — > 0.5 * 8400 = 4200) | Between 2940 and 3780(70% — > 0.7 * 4200 = 2940 /90% — > 0.9 * 4200 = 3780) |
Highlights
Multiplex v/s Single Screen: It is quite an inevitable fact that Multiplexes have been dominating the box office with every passing year; still the strength of Single Screens can’t be ignored. Single Screens may be termed as the backbone of Distributor Share for the consistent contribution they make and even today, when it comes to making/breaking big records, a film cannot bypass Single Screens.
Hit vs Flop: General norm is that the collection of a film judges how big success it is. But, this is false. In reality it is the Distributor Share which decides a film’s fate because it takes into account both the film’s cost & its box office performance. A film may be called a FLOP fare if it collects 60cr net because of its huge costs to the makers and distributors. On the contrary, another film may turn out to be HIT even if nets 40cr only due to low budget.
Footfalls – An Untold Story: While writing this article, I realized that there is a parameter which is not quite explored/considered in judging box office numbers. And that is Footfalls – i.e the number of people going to watch a film in theatre. One may figure out quickly from above facts that even if more people visit a Single Screen than a Multiplex, Multiplex always has a lead due to high ticket prices.
Love to have your feedback/comments.
Article by Archit Mishra (Read more articles from the author)
I have acquired some new items from your web page about pc’s. Another thing I’ve always presumed is that computer systems have become an item that each household must have for a lot of reasons. They offer convenient ways to organize the home, pay bills, shop, study, listen to music as well as watch television shows. An innovative technique to complete most of these tasks is to use a laptop computer. These pc’s are portable ones, small, potent and lightweight.
Thanks for your publication. One other thing is that often individual American states have their unique laws in which affect people, which makes it quite hard for the Congress to come up with a different set of guidelines concerning foreclosure on people. The problem is that every state has got own laws which may have interaction in an undesirable manner with regards to foreclosure policies.
Please let me know if you’re looking for a writer for your weblog. You have some really good posts and I think I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some content for your blog in exchange for a link back to mine. Please blast me an email if interested. Cheers!
I’d also like to express that most of those that find themselves without the need of health insurance are typically students, self-employed and those that are jobless. More than half on the uninsured are really under the age of Thirty five. They do not come to feel they are requiring health insurance as they are young and also healthy. Their particular income is frequently spent on homes, food, and entertainment. Lots of people that do represent the working class either complete or part time are not given insurance by way of their jobs so they proceed without with the rising cost of health insurance in the usa. Thanks for the suggestions you share through this blog.
I have taken note that of all varieties of insurance, medical care insurance is the most debatable because of the issue between the insurance company’s obligation to remain adrift and the buyer’s need to have insurance policies. Insurance companies’ income on health plans have become low, as a result some organizations struggle to generate income. Thanks for the thoughts you discuss through this blog.
I would love to add if you do not already have an insurance policy or perhaps you do not take part in any group insurance, you might well benefit from seeking aid from a health agent. Self-employed or individuals with medical conditions generally seek the help of any health insurance specialist. Thanks for your post.
Thanks for your text. I would like to say that your health insurance broker also works best for the benefit of the particular coordinators of the group insurance policy. The health insurance professional is given an index of benefits looked for by anyone or a group coordinator. What any broker can is find individuals and also coordinators which often best match up those desires. Then he gifts his suggestions and if both parties agree, the broker formulates a legal contract between the two parties.
Today, taking into consideration the fast lifestyle that everyone leads, credit cards have a big demand throughout the economy. Persons out of every area of life are using credit card and people who are not using the credit cards have arranged to apply for just one. Thanks for expressing your ideas about credit cards.
Thanks for your recommendations on this blog. Just one thing I would wish to say is the fact that purchasing electronic devices items from the Internet is certainly not new. In fact, in the past several years alone, the marketplace for online electronic products has grown a great deal. Today, you can get practically any specific electronic tool and gizmo on the Internet, ranging from cameras along with camcorders to computer elements and video games consoles.
I have realized that of all forms of insurance, health insurance coverage is the most questionable because of the conflict between the insurance company’s duty to remain adrift and the buyer’s need to have insurance cover. Insurance companies’ earnings on health plans are low, thus some corporations struggle to earn profits. Thanks for the tips you share through this website.
Thanks for your write-up. I also believe that laptop computers are becoming more and more popular right now, and now tend to be the only kind of computer used in a household. The reason is that at the same time actually becoming more and more economical, their processing power keeps growing to the point where there’re as highly effective as pc’s through just a few years ago.
Thanks for your concepts. One thing I’ve noticed is banks in addition to financial institutions are aware of the spending practices of consumers and also understand that a lot of people max out their cards around the holidays. They correctly take advantage of this particular fact and start flooding a person’s inbox along with snail-mail box by using hundreds of no-interest APR credit cards offers just after the holiday season concludes. Knowing that when you are like 98 in the American public, you’ll soar at the possible opportunity to consolidate card debt and transfer balances for 0 interest rate credit cards.
Excellent website you have here but I was curious if you knew of any user discussion forums that cover the same topics talked about here? I’d really love to be a part of online community where I can get feed-back from other experienced individuals that share the same interest. If you have any suggestions, please let me know. Thank you!
I have noticed that smart real estate agents just about everywhere are warming up to FSBO Promoting. They are recognizing that it’s not only placing a sign in the front place. It’s really pertaining to building interactions with these vendors who at some point will become purchasers. So, while you give your time and effort to serving these retailers go it alone – the “Law associated with Reciprocity” kicks in. Thanks for your blog post.
I think that a foreclosed can have a important effect on the borrower’s life. Home foreclosures can have a Seven to several years negative effects on a applicant’s credit report. Any borrower having applied for home financing or almost any loans as an example, knows that the actual worse credit rating is definitely, the more hard it is to acquire a decent mortgage. In addition, it may possibly affect a new borrower’s chance to find a really good place to lease or hire, if that becomes the alternative property solution. Interesting blog post.
I think this is one of the most significant information for me. And i’m glad reading your article. But should remark on few general things, The website style is great, the articles is really excellent : D. Good job, cheers
Thanks for these pointers. One thing I should also believe is always that credit cards featuring a 0 apr often entice consumers in zero monthly interest, instant endorsement and easy online balance transfers, but beware of the real factor that will certainly void your own 0 easy neighborhood annual percentage rate and to throw one out into the poor house quickly.
Thanks for discussing your ideas with this blog. In addition, a delusion regarding the banking companies intentions while talking about foreclosures is that the financial institution will not take my installments. There is a fair bit of time the bank requires payments occasionally. If you are too deep inside hole, they’ll commonly demand that you pay that payment entirely. However, i am not saying that they will not take any sort of payments at all. If you and the traditional bank can be capable to work a thing out, the foreclosure practice may cease. However, in the event you continue to pass up payments underneath the new plan, the home foreclosure process can pick up exactly where it was left off.
Generally I do not read post on blogs, but I would like to say that this write-up very forced me to try and do it! Your writing style has been surprised me. Thanks, very nice post.
According to my research, after a in foreclosure process home is bought at an auction, it is common to the borrower to be able to still have any remaining unpaid debt on the personal loan. There are many lenders who try to have all charges and liens paid back by the upcoming buyer. Nevertheless, depending on specified programs, rules, and state legislation there may be some loans which are not easily handled through the shift of lending options. Therefore, the duty still falls on the customer that has got his or her property in foreclosure process. Thank you for sharing your ideas on this web site.
Thanks for sharing your ideas here. The other issue is that every time a problem develops with a pc motherboard, persons should not consider the risk of repairing this themselves for if it is not done properly it can lead to irreparable damage to the whole laptop. It is almost always safe just to approach a dealer of that laptop for the repair of the motherboard. They have got technicians who have an know-how in dealing with notebook computer motherboard difficulties and can carry out the right prognosis and carry out repairs.
I would also like to state that most individuals that find themselves without the need of health insurance are typically students, self-employed and those that are unemployed. More than half in the uninsured are under the age of Thirty five. They do not experience they are needing health insurance since they are young and healthy. Its income is generally spent on homes, food, plus entertainment. Lots of people that do represent the working class either entire or part-time are not given insurance by means of their work so they get along without due to the rising valuation on health insurance in the us. Thanks for the suggestions you share through this site.
I would like to add if you do not actually have an insurance policy otherwise you do not take part in any group insurance, chances are you’ll well benefit from seeking aid from a health insurance broker. Self-employed or people with medical conditions generally seek the help of one health insurance agent. Thanks for your post.
One other issue is when you are in a scenario where you don’t have a cosigner then you may genuinely wish to try to make use of all of your federal funding options. You will find many funds and other scholarships or grants that will ensure that you get money to aid with university expenses. Thanks for the post.
Thanks for this wonderful article. One other thing is that most digital cameras come equipped with a zoom lens that permits more or less of the scene to be included by simply ‘zooming’ in and out. All these changes in focusing length tend to be reflected from the viewfinder and on substantial display screen right on the back of any camera.
I have seen a lot of useful elements on your site about pc’s. However, I’ve got the impression that notebook computers are still not nearly powerful enough to be a option if you usually do things that require a lot of power, just like video editing and enhancing. But for world wide web surfing, statement processing, and a lot other typical computer functions they are just great, provided you may not mind the small screen size. Many thanks sharing your thinking.
I’m still learning from you, while I’m improving myself. I certainly liked reading everything that is posted on your blog.Keep the aarticles coming. I enjoyed it!
Thanks for your tips on this blog. Just one thing I want to say is the fact that purchasing electronic devices items through the Internet is nothing new. Actually, in the past ten years alone, the marketplace for online consumer electronics has grown noticeably. Today, you can find practically just about any electronic tool and other gadgets on the Internet, from cameras and also camcorders to computer elements and games consoles.
I love your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz answer back as I’m looking to design my own blog and would like to find out where u got this from. thanks
Thanks for your article. I also believe that laptop computers have grown to be more and more popular today, and now are sometimes the only sort of computer utilised in a household. Simply because at the same time actually becoming more and more very affordable, their working power keeps growing to the point where there’re as highly effective as personal computers from just a few years back.