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)
Thanks for the concepts you share through your blog. In addition, many young women exactly who become pregnant never even try and get health care insurance because they dread they wouldn’t qualify. Although a lot of states right now require that insurers give coverage regardless of pre-existing conditions. Premiums on these kind of guaranteed plans are usually higher, but when considering the high cost of medical care bills it may be the safer way to go to protect a person’s financial future.
Thanks for your posting. Another element is that just being a photographer includes not only trouble in catching award-winning photographs and also hardships in acquiring the best video camera suited to your needs and most especially hardships in maintaining the standard of your camera. It is very genuine and clear for those photographers that are directly into capturing the nature’s exciting scenes : the mountains, the forests, the particular wild or perhaps the seas. Visiting these exciting places undoubtedly requires a digicam that can surpass the wild’s tough conditions.
I would also love to add that when you do not currently have an insurance policy or else you do not remain in any group insurance, you might well benefit from seeking the aid of a health agent. Self-employed or those that have medical conditions commonly seek the help of a health insurance broker. Thanks for your post.
Thanks for the recommendations on credit repair on this particular blog. The thing I would advice people would be to give up the actual mentality they can buy at this moment and pay later. Like a society we all tend to make this happen for many factors. This includes family vacations, furniture, and items we really want to have. However, you have to separate a person’s wants from the needs. While you’re working to raise your credit ranking score make some trade-offs. For example you’ll be able to shop online to save money or you can check out second hand merchants instead of highly-priced department stores for clothing.
Thanks for your suggestions. One thing I’ve got noticed is the fact that banks and also financial institutions really know the spending patterns of consumers and understand that most of the people max out there their own credit cards around the getaways. They properly take advantage of this specific fact and start flooding your own inbox along with snail-mail box having hundreds of no-interest APR credit cards offers right after the holiday season concludes. Knowing that in case you are like 98 of all American public, you’ll get at the chance to consolidate consumer credit card debt and shift balances for 0 apr interest rates credit cards.
Some tips i have always told men and women is that when evaluating a good internet electronics store, there are a few variables that you have to think about. First and foremost, you should make sure to choose a reputable as well as reliable store that has received great opinions and scores from other buyers and business world advisors. This will make sure that you are getting along with a well-known store that provides good assistance and assistance to its patrons. Thank you for sharing your ideas on this weblog.
Thanks for your publication. What I want to point out is that while searching for a good internet electronics retail outlet, look for a site with entire information on important factors such as the privacy statement, safety measures details, payment procedures, as well as other terms and policies. Always take time to look into the help plus FAQ segments to get a better idea of what sort of shop operates, what they can do for you, and the way you can take full advantage of the features.
One thing I’ve noticed is the fact that there are plenty of misconceptions regarding the lenders intentions whenever talking about foreclosure. One fable in particular is that often the bank wants your house. The lending company wants your money, not your house. They want the money they gave you together with interest. Steering clear of the bank will undoubtedly draw a new foreclosed realization. Thanks for your posting.
Hi! I know this is kind of off topic but I was wondering if you knew where I could find a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having trouble finding one? Thanks a lot!
One important thing is that when you are searching for a student loan you may find that you’ll need a cosigner. There are many conditions where this is correct because you might find that you do not use a past credit rating so the mortgage lender will require that you’ve got someone cosign the money for you. Good post.
There are some interesting closing dates in this article but I don’t know if I see all of them middle to heart. There’s some validity however I’ll take maintain opinion until I look into it further. Good article , thanks and we wish more! Added to FeedBurner as well
I think other web site proprietors should take this web site as an model, very clean and excellent user genial style and design, let alone the content. You are an expert in this topic!
One thing I’ve noticed is the fact there are plenty of misguided beliefs regarding the banking institutions intentions while talking about foreclosed. One misconception in particular is the fact that the bank needs to have your house. The lender wants your hard earned money, not the house. They want the bucks they lent you along with interest. Averting the bank will simply draw any foreclosed realization. Thanks for your write-up.
Thanks for your write-up. What I want to point out is that while searching for a good on-line electronics retail outlet, look for a internet site with full information on critical indicators such as the personal privacy statement, safety measures details, payment procedures, and also other terms as well as policies. Constantly take time to read the help as well as FAQ pieces to get a superior idea of how a shop is effective, what they can do for you, and in what way you can make the most of the features.
These days of austerity and relative anxiety about getting debt, most people balk against the idea of having a credit card to make purchase of merchandise or perhaps pay for a holiday, preferring, instead just to rely on the tried in addition to trusted method of making settlement – hard cash. However, if you possess cash on hand to make the purchase completely, then, paradoxically, that’s the best time just to be able to use the cards for several factors.
Thanks for discussing your ideas on this blog. Additionally, a delusion regarding the banking companies intentions whenever talking about property foreclosure is that the lender will not getreceive my payments. There is a fair bit of time that this bank requires payments here and there. If you are as well deep within the hole, they are going to commonly require that you pay the particular payment fully. However, that doesn’t mean that they will not take any sort of installments at all. In the event you and the bank can manage to work a thing out, the particular foreclosure course of action may halt. However, in case you continue to neglect payments wih the new approach, the property foreclosures process can pick up exactly where it was left off.
Thanks for these guidelines. One thing I additionally believe is the fact that credit cards giving a 0 rate often bait consumers together with zero monthly interest, instant endorsement and easy over-the-internet balance transfers, but beware of the real factor that will void that 0 easy street annual percentage rate as well as throw one out into the terrible house quickly.
After examine a few of the weblog posts in your web site now, and I really like your approach of blogging. I bookmarked it to my bookmark website record and will probably be checking back soon. Pls take a look at my website as well and let me know what you think.
I’ve learned newer and more effective things from a blog post. One other thing to I have noticed is that generally, FSBO sellers will reject an individual. Remember, they’d prefer not to use your solutions. But if a person maintain a steady, professional romance, offering support and remaining in contact for four to five weeks, you will usually manage to win interviews. From there, a listing follows. Thanks a lot
Coming from my observation, shopping for electronics online may be easily expensive, nevertheless there are some tips that you can use to acquire the best products. There are always ways to come across discount discounts that could help make one to have the best gadgets products at the smallest prices. Good blog post.
From my observation, shopping for technology online may be easily expensive, although there are some how-to’s that you can use to help you get the best discounts. There are usually ways to obtain discount deals that could help make one to have the best electronic products products at the lowest prices. Thanks for your blog post.
In these days of austerity along with relative anxiety about incurring debt, many people balk against the idea of making use of a credit card to make acquisition of merchandise or pay for any gift giving occasion, preferring, instead only to rely on the particular tried plus trusted approach to making repayment – hard cash. However, if you possess the cash available to make the purchase entirely, then, paradoxically, that is the best time just to be able to use the credit cards for several motives.
Thanks for your article. I also believe that laptop computers have grown to be more and more popular these days, and now tend to be the only form of computer used in a household. The reason is that at the same time that they’re becoming more and more very affordable, their working power keeps growing to the point where they may be as strong as desktop computers from just a few in years past.
Today, with all the fast life style that everyone is having, credit cards have a huge demand in the economy. Persons from every arena are using the credit card and people who are not using the credit cards have made up their minds to apply for one in particular. Thanks for revealing your ideas about credit cards.
One thing I have actually noticed is that there are plenty of fallacies regarding the banking institutions intentions if talking about foreclosures. One delusion in particular is the fact that the bank would like your house. The lender wants your dollars, not the house. They want the cash they gave you along with interest. Steering clear of the bank is only going to draw some sort of foreclosed conclusion. Thanks for your write-up.
I’ve learned quite a few important things by means of your post. I might also like to express that there might be situation where you will apply for a loan and don’t need a cosigner such as a U.S. Student Aid Loan. But when you are getting a loan through a regular financier then you need to be ready to have a cosigner ready to enable you to. The lenders will probably base their own decision over a few factors but the main one will be your credit rating. There are some loan merchants that will as well look at your work history and make up your mind based on that but in almost all cases it will be based on on your rating.
A few things i have always told people today is that when looking for a good online electronics retail outlet, there are a few elements that you have to take into account. First and foremost, you want to make sure to find a reputable as well as reliable retail store that has gotten great testimonials and scores from other people and market sector advisors. This will ensure you are getting through with a well-known store that delivers good program and assistance to its patrons. Thank you for sharing your opinions on this website.
Thanks for your writing. I would like to say that the health insurance agent also works for the benefit of the coordinators of the group insurance. The health insurance professional is given a listing of benefits needed by a person or a group coordinator. What any broker really does is look for individuals as well as coordinators which will best match up those demands. Then he shows his tips and if each party agree, the actual broker formulates legal contract between the two parties.
hello!,I like your writing so much! share we communicate more about your post on AOL? I require an expert on this area to solve my problem. May be that’s you! Looking forward to see you.
I’m writing to let you understand what a wonderful experience our daughter obtained reading through your blog. She realized several things, with the inclusion of what it’s like to possess a very effective teaching mindset to make men and women quite simply completely grasp selected impossible things. You actually exceeded visitors’ expectations. Thank you for presenting such informative, dependable, revealing and even easy tips on the topic to Gloria.