Saturday, 14 January 2012

Must known Common Facts about Movie collection

There are somany doubts related to the movies collection are always seen in the people's mind. Below are some common doubts among peole-: 

Q1 . What is the Diffrence between Nett collection & Gross collection of a Movie?

Ans-: Here is a difference between Gross and Nett.
 Gross Collection = Total Ticket Sales Collection
 Nett collection =  (Total Ticket Sales Collection) - (Entertainment tax which is normally between 20% to 30% varies country by country. In India it is 25%).

In Simple Words , Gross Collections is the total Money Which Comes From Ticket Sales. On Which Entertainment Taxes are Deducted and We Arrive to net Collections Which are Further Shared Between Exhibitors and Distributors On Some Rules. The Distributor Share is Generally 50-60% of the Net Collections. The rest of the Moeny is Recovered from Satelite and Music Deals, Advertisements, Sponsorships, etc.


Q2.If is Spend Rs. 100 in India and Overseas on a Ticket, How much goes to the Producer in Each Case?
 Ans -: Aprroximately 70 Rupees Contributes to net collection of which 90% goes to the Distributor in India. And if the Distributor and Producer are same which is true in most cases than the complete money is kept with the same company.
But, the Distributors are different in Overseas so a comparitively lower share of money is kept with the producers. As the films are handed to different Distribution Companies in overseas.
Don 2 Declared " Super Hit"
Q3 . How film distribution works what is distributor share ?

Ans -: It has been said that making a movie is not nearly as difficult as getting it distributed. Because of the enormous amount of cost in money and time involved in distributing a movie, a distributor must feel confident that they can make a sufficient return on their investment. Having the backing of a major studio or a well known director or star can greatly improve the chances of securing a good distribution deal. Independent filmmakers often use film festivals as an opportunity to get the attention of distributors. Once a distributor is interested in a film, the two parties arrive at a distribution agreement based on one of two financial models:
  • Leasing
  • Profit sharing

In the leasing model, the distributor agrees to pay a fixed amount for the rights to distribute the film. If the distributor and the studio have a profit-sharing relationship, on the other hand, the distributor gets a percentage(typically anywhere from 10 to 50 percent) of the net profits made from the movie. Both models can be good or bad, depending on how well a movie does at the box office. The goal of both the studio and the distribution company is to predict which model will benefit them the most.
Most of the major studios have their own distribution companies. For example, Yash Raj Studios owns Yash Raj Films. The obvious advantages of this are that it is very simple to set up a distribution deal and the parent company doesn’t have to share the profits with another company. The big problem is when an expensive movie is a flop — there’s no one else to share the costs. That’s the main reason several studios have partnered on major movies in recent years. For example, “Ra,one” is produced entirely by Red Chillies but distributed by Eros Entertainement Along With Red Chillies.


Q4 . How do we Know a Film is an All Time BlockBuster, BlockBuster, Super Hit or Hit ?

Ans -: There is no hard and fast rule, but this is what we follow.
>. All Time BlockBuster – To Become an All Time Blockbuster a movie should put up record breaking collections and recover its budget by good margin. The Film Should Also Run Healthily till 3-4 Weeks Atleast at the theatres. And it is necessary that it takes place in top 2-3 grossers of all time.
>. Blockbuster – A Film is Called Blockbuster if it puts Collections 3-4 times its Budget or Performs well despite a small release. Also, Films which create Opening records but do not fit for ATBB are blockbusters.
>. Hit or Super Hit – Any Films which recovers its Budget Healthily is called a hit or super hit. These Film do not qualify for blokcbusters because they perform under potential, because the kind of release they were offered, they could have done better.

Q5 . Why do Hollywood Movies Cost more than Bollywood ?

 Ans -:Hollywood Producers Invest More into technology, equipments, costlier sets(extremely costly), etc. Their Staff are Well Qualified and Highly Paid as well. They Can do all this because they are sure of returns. If Indian MoviesGross that Much, i am sure Indian Producers will start investing more money into making of films.

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