Producer:
Distributors:
The Distributor forms the most vital link in this money chain by acting as a medium between Producers and Theaters. The producer can either directly Distribute or make a contract with any Distributors Company.
For example, Venkatesh Film produce films and they also distribute the films themselves.
Other side Grassroots Entertainment produce as film and Reliance Entertainment distribute their films.
Budget :
The Budget of a movie is referrer to as the total amount of money spent on making the movie, that is the production costs, cast and crew payment etc.The money that a Producer invests in making a film is called the “Budget”. Apart from this, once a film is complete, it has to be marketed and that calls for {Print and Publicity(P&P) } expenses.Which is very low for tollywood.
Revenue :
The Revenue Channels for Bengali movies are generally considered as follows:
Theatrical Revenue : 65 % (Distributor Share)
Satellite Rights: 30 %
DVD/Music: 5 %
(Approx)
Theatrical Revenue :
The first and the major contributor for the revenue generation is the Indian Theatrical collections.There are few terms in relation Theatrical run Of movies.
Gross :
Gross is the total amount generated by ticket sell in theatres.
Entertainment Tax :
This is the tax amount set by government. In West Bengal there is 2% entertainment tax for Bengali movies. The tax is given by the Theaters themselves not by the Producers or Any Distributors.
Nett Gross :
After the entertainment tax is deducted from the Gross Collections, what is left is the “nett”. This is the actual term, which is now talk in trade or media.
This is the main revenue of theater which is divided into Exhibitor (Theater owner) & Distributors.
Distributer Share:
The Theater owner now cuts his share/rent (also called Exhibitors Share) from the Nett and thus resulting thethe real share which will actually go the Distributor. This is called the “distributor’s share” or “share” in trade parlance. This is the money from which the movie’s budget/cost is recovered.In General Share is around 50-60 % of the Nett collections (if the movie has done a good to mix of business in Single screens and Multiplex.
Theatrical Exhibition:
Multiplexes:
With the rise of Urban/City Multiplexes bulk of the business comes from these Multiplexes only.The revenue sharing model adopted by the 6 major Multiplex chains of India(Exhibitors) and the Producers Association is as follows based on the agreement reached on Friday, 5th June 2009.“Producers/Distributors will get 50% of the nett collections from the multiplexes in the first week, 42.5% in week 2, 37.5% in the third week and 30% in and after week 4. An additional 2.5% will be paid to producers/distributors in the first and second weeks if the nett collections across the multiplex properties owned and operated by the six national chains (PVR, Big, Inox, Fame, Cinemax and Fun)
There are also Independent Multiplexes. Now the share from these Independent Plexes depends from movie to movie and each time a producer has a deal with them but usually it hovers around the ~50% mark only.
Single Screens:
Most of the commercial Bengali films are generally get 90% Theatrical revenue from the single screens.
Though the revenue from single screens has been on a decline for several years now and the trend is supposed to continue, as of now they do provide some substantial amount as long as the movie has elements to work in the Single Screens.The share system for single screens is little different from plexes. The Screens are actually given on rent to the producer to play their movie at a fixed rate and the rest of the revenue (after subtracting the rent) goes directly to the producer.Usually Big movies are booked for 1 or 2 weeks at single screens and depending on the movies performance the booking is increased or decreased.Lets take a few examples here,
Lets assume a given Single Screens charges ₹ 70,000 rupees per week as its rent for running full shows of a movie. Suppose movie has done full week the nett gross of 3,00,000 and the rent will be 70,000. The share % going the producer will be (3-0.7)/3 =76.66%.
Suppose movie has done 100,000 nett and the rent will be 70,000. The share % going the producer will be (1-.07)/1= 30%). Now there might be different rent charges for different single screens, the screens of rural areas are the cheapest and the one’s in Kolkata are the costliest.But we get an idea that a movie gets its share from single screens depending on how it has done there, it can go as high as 80% and go as low as 35% depending on how it has done there.But in general movies which do super hit to Blockbuster well in Single Screens get around 70-80% share from the total nett. Many times flop films can't recover it's rent cost itself.
Satellite Rights:
Satellite bid prices have been off the roof for most of their history.The production company sell the Tv Rights to a Broadcasting TV channel.
Other Rights:
DVD and Music are the most prominent from of extra revenue a movie can earn. There are industry prices for most of these, though it too depends on the scale and performance of the movie too. In commercial Bengali movies this is around ₹30 lacs.
Example :
Boss(2013)-
Budget - ₹4 cr
Box Office :
Gross - ₹ 6.48 cr
Entertainment Tax - 2%
Nett Gross - ₹ 6.35 cr
Distributors Share - ₹ 4.25 cr (67% Share from the nett)
Satellite Rights - ₹3 cr
Music & DVD Rights - ₹0.30
Total Revenue - 4.25+3+.30 = ₹ 7.55 cr
Total Profit -
7.55(Revenue) - 4 (budget)
= ₹3.55 cr
(This type of profit amount is huge for any Bengali Production House)
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