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| Source Wikipedia |
How are movie box office collections calculated in India?
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.
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.
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.
Source Wikipedia
How do movies make money in OTT platform?
Every user of TVOD i.e. OTT, when downloading any content, pays a fee for it. That means transaction on every download.
SVOD means that any user pays a sum of money every month or for a time frame and can see all the contents of that platform.
AVOD is the third way to see content, there is no charge, but the user has to see ads in between the content. Like YouTube is free but will have to watch the edits in the middle of the video. OTT is earned through these advertisements.
Bollywood Box Office Report :
MOVIE NAMEBahubali 2:The Conclusion | BOX OFFICE COLLECTION176 Crore | ||
|---|---|---|---|
| Mumbai Saga | 8.65 Crore | ||
| Roohi Sandeep aur Pinky Faraar | 16.75 Crore 0.75 Crore | ||
Source Youtube
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