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)
According to my research, after a in foreclosure process home is bought at an auction, it is common for that borrower to be able to still have the remaining balance on the mortgage. There are many loan merchants who try and have all costs and liens paid back by the subsequent buyer. On the other hand, depending on specific programs, legislation, and state legal guidelines there may be some loans that aren’t easily fixed through the shift of lending options. Therefore, the obligation still lies on the client that has had his or her property in foreclosure process. Thanks for sharing your ideas on this blog site.
One thing I’ve noticed is the fact there are plenty of myths regarding the banking institutions intentions while talking about home foreclosure. One fable in particular is always that the bank would like your house. The lending company wants your hard earned dollars, not your house. They want the cash they gave you having interest. Keeping away from the bank is only going to draw a foreclosed final result. Thanks for your write-up.
Based on my research, after a in foreclosure process home is offered at an auction, it is common to the borrower in order to still have some sort ofthat remaining balance on the loan. There are many creditors who aim to have all rates and liens paid by the subsequent buyer. Having said that, depending on certain programs, rules, and state guidelines there may be quite a few loans which are not easily fixed through the exchange of financial products. Therefore, the responsibility still rests on the client that has received his or her property in foreclosure. Thanks for sharing your opinions on this blog.
Thanks for expressing your ideas listed here. The other factor is that each time a problem appears with a computer system motherboard, persons should not take the risk regarding repairing the item themselves because if it is not done properly it can lead to permanent damage to all the laptop. Most commonly it is safe to approach the dealer of your laptop for that repair of that motherboard. They’ve technicians that have an knowledge in dealing with notebook motherboard issues and can make the right prognosis and conduct repairs.
One thing I have actually noticed is that there are plenty of common myths regarding the banking institutions intentions when talking about foreclosures. One misconception in particular is the bank wishes to have your house. Your banker wants your hard earned money, not the house. They want the money they lent you having interest. Steering clear of the bank will only draw a new foreclosed final result. Thanks for your article.
Great weblog right here! Also your web site quite a bit up very fast! What web host are you the use of? Can I am getting your affiliate hyperlink in your host? I wish my site loaded up as fast as yours lol
Woah! I’m really loving the template/theme of this site. It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between superb usability and visual appearance. I must say you have done a awesome job with this. Additionally, the blog loads very fast for me on Firefox. Exceptional Blog!
Hiya! I simply want to give an enormous thumbs up for the great information you could have here on this post. I might be coming again to your blog for extra soon.
Thanks for this glorious article. Also a thing is that most digital cameras can come equipped with some sort of zoom lens that enables more or less of a scene to generally be included by ‘zooming’ in and out. All these changes in focus length are usually reflected inside the viewfinder and on massive display screen at the back of any camera.
Many thanks for your post. I’d like to comment that the expense of car insurance differs from one insurance plan to another, simply because there are so many different issues which bring about the overall cost. Such as, the brand name of the vehicle will have a tremendous bearing on the fee. A reliable aged family motor vehicle will have a more affordable premium over a flashy sports car.
Thanks for these guidelines. One thing I also believe is that often credit cards supplying a 0 monthly interest often entice consumers with zero rate of interest, instant acceptance and easy internet balance transfers, but beware of the most recognized factor that is going to void your current 0 easy street annual percentage rate and also throw one out into the bad house in no time.
I would like to add that if you do not already have an insurance policy otherwise you do not remain in any group insurance, you could possibly well make use of seeking assistance from a health insurance agent. Self-employed or people who have medical conditions commonly seek the help of the health insurance broker. Thanks for your article.
I really believe that a foreclosed can have a important effect on the debtor’s life. House foreclosures can have a Six to several years negative impact on a client’s credit report. A borrower having applied for home financing or any loans even, knows that a worse credit rating is definitely, the more hard it is for any decent personal loan. In addition, it could possibly affect a new borrower’s capacity to find a decent place to let or hire, if that will become the alternative houses solution. Thanks for your blog post.
I have realized that over the course of making a relationship with real estate homeowners, you’ll be able to come to understand that, in every single real estate deal, a commission amount is paid. Finally, FSBO sellers tend not to “save” the payment. Rather, they struggle to earn the commission by means of doing an agent’s work. In this, they spend their money along with time to conduct, as best they might, the jobs of an real estate agent. Those duties include getting known the home by way of marketing, delivering the home to buyers, creating a sense of buyer urgency in order to make prompt an offer, booking home inspections, controlling qualification assessments with the loan provider, supervising maintenance tasks, and facilitating the closing.
One thing I’ve noticed is that often there are plenty of myths regarding the finance institutions intentions any time talking about property foreclosure. One fairy tale in particular is the fact the bank desires your house. The financial institution wants your dollars, not your house. They want the cash they gave you having interest. Averting the bank will simply draw any foreclosed realization. Thanks for your posting.
Today, with all the fast chosen lifestyle that everyone leads, credit cards get this amazing demand throughout the economy. Persons throughout every area of life are using the credit card and people who are not using the credit card have made arrangements to apply for even one. Thanks for discussing your ideas in credit cards.
Thanks for your write-up. One other thing is that often individual states have their own personal laws that affect householders, which makes it very, very hard for the the legislature to come up with a brand new set of guidelines concerning home foreclosure on home owners. The problem is that each state provides own regulations which may have impact in an undesirable manner on the subject of foreclosure procedures.
Wow! Thank you! I continuously wanted to write on my website something like that. Can I take a part of your post to my blog?
Today, with all the fast life style that everyone is having, credit cards get this amazing demand throughout the market. Persons out of every area are using the credit card and people who aren’t using the credit card have made up their minds to apply for 1. Thanks for discussing your ideas on credit cards.
I have really noticed that credit restoration activity must be conducted with tactics. If not, chances are you’ll find yourself damaging your positioning. In order to reach your goals in fixing your credit score you have to confirm that from this time you pay your monthly fees promptly prior to their planned date. It’s really significant because by certainly not accomplishing so, all other measures that you will choose to adopt to improve your credit rating will not be successful. Thanks for expressing your thoughts.
Thanks for the tips you are sharing on this website. Another thing I’d really like to say is that often getting hold of copies of your credit file in order to examine accuracy of each and every detail will be the first measures you have to accomplish in credit restoration. You are looking to clear your credit report from dangerous details mistakes that wreck your credit score.
Thanks for your short article. I would like to say that the health insurance brokerage also works well with the benefit of the coordinators of a group insurance plan. The health broker is given a summary of benefits searched for by individuals or a group coordinator. Such a broker will is seek out individuals as well as coordinators which best fit those needs. Then he presents his referrals and if each party agree, the particular broker formulates a binding agreement between the two parties.
I have discovered that good real estate agents everywhere are getting set to FSBO Marketing. They are seeing that it’s in addition to placing a poster in the front place. It’s really pertaining to building associations with these vendors who at some point will become customers. So, once 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 have observed that good real estate agents just about everywhere are warming up to FSBO Advertising. They are knowing that it’s more than just placing a sign post in the front area. It’s really with regards to building associations with these suppliers who later will become purchasers. So, whenever you give your time and effort to encouraging these suppliers go it alone – the “Law connected with Reciprocity” kicks in. Thanks for your blog post.
Thanks for giving your ideas here. The other thing is that whenever a problem occurs with a computer motherboard, individuals should not consider the risk associated with repairing the item themselves because if it is not done properly it can lead to irreparable damage to the complete laptop. It’s usually safe just to approach any dealer of your laptop for that repair of the motherboard. They’ve already technicians who definitely have an skills in dealing with laptop motherboard troubles and can have the right diagnosis and accomplish repairs.
I have discovered some new items from your internet site about computers. Another thing I’ve always thought is that laptop computers have become an item that each household must have for most reasons. They provide convenient ways in which to organize homes, pay bills, go shopping, study, pay attention to music and in some cases watch television shows. An innovative solution to complete many of these tasks has been a mobile computer. These pc’s are mobile ones, small, powerful and lightweight.
Thanks for sharing your ideas on this blog. In addition, a delusion regarding the lenders intentions while talking about foreclosed is that the lender will not take my repayments. There is a certain quantity of time which the bank can take payments in some places. If you are very deep inside the hole, they should commonly desire that you pay the particular payment entirely. However, i am not saying that they will not take any sort of repayments at all. When you and the financial institution can seem to work one thing out, a foreclosure process may cease. However, if you continue to neglect payments within the new program, the property foreclosures process can just pick up from where it was left off.
Today, considering the fast way of life that everyone leads, credit cards have a huge demand throughout the economy. Persons throughout every arena are using the credit card and people who not using the credit card have lined up to apply for one in particular. Thanks for spreading your ideas in credit cards.
I would love to add when you do not surely have an insurance policy or you do not form part of any group insurance, you might well reap the benefits of seeking the help of a health insurance agent. Self-employed or people with medical conditions generally seek the help of an health insurance brokerage service. Thanks for your blog post.
Thanks for the concepts you talk about through this website. In addition, numerous young women who seem to become pregnant will not even try to get health insurance coverage because they are full of fearfulness they won’t qualify. Although a lot of states today require that insurers give coverage regardless of pre-existing conditions. Prices on these guaranteed plans are usually higher, but when with the high cost of health care it may be the safer way to go to protect one’s financial future.