![]() You Have Exceptionally Sharp Vision If You Can Spot The Fish Within 8 Seconds! 2 hrs ago.Today’s School Assembly Headlines (15 September): Libya Floods, Parliament Special Session and Asia Cup 20231 hour ago.Reason behind using word ‘wood’ in Cinema ![]() Hopefully your concept will be cleared in this regard. So from the above explanation you must have understood that how box office collection is calculated and how the distributors and theatre owners get their share in this profit chain. It is important to mention here that apart from the share in the total box office collection the distributor receives income from non-theatrical sources like music rights, satellite rights and overseas subsidy etc. But the distributor will get the share at the fixed rate of 70-90 percent. The same type of distribution policy is applied to the films displayed on the single screen. In the third week the distributor will get 37% share of the total collection and from the third week onwards the distributor will get the fixed share at the rate of 30% of the total collection. ![]() ![]() The share of the distributor in the second week will be 42% of Rs. Total amount in the hand of theatre owner after deducting the entertainment tax will be= 1600000-480000=Rs. Total collection in the second week (if 100 viewers and 80 shows are considered) will be= 200 x 80x 100 = 16 lacs So the amount received by the distributor from the first week of the show of the film will be Rs. As if the film is released in multiplex, 50% of the first week's collection, 42% in the second week, 37% in the third week and thereafter fixed 30% share is given to the film distributors. Now let us know how the box office collection is calculated?ĭistributors receive the returns from theater owners on a weekly basis. Finally, after repaying the entertainment tax, the remaining amount is returned to the distributor as per the agreement between the theatre and distributors. Entertainment tax is charged by different state governments and it is charged at different rates in every circuit. Entertainment tax (about 30%) is deducted from the total collection. Here it is necessary to tell that the total collection is done by the theater owners. This agreement primarily focuses on the "number of film screen" and "profit returns" to be paid by the theatres to the distributors. There are two types of theatres in India īoth of these have different kind of agreements with distributors. Theater Owner: On pre-defined agreements with the theatre owners, the distributors hire their theatres to showcase films. The name of 14 circuits are Mumbai, Delhi/UP, East Punjab, Central India, CP Berar (Central Provinces),Bihar, Rajasthan, Nizam, West Bengal, Tamil Nadu, Mysore,Kerala,Orissa and Assam. The Indian film industry is majorly divided into 14 circuits and each circuit has its own "distributor representative". In this situation, the gain or loss are swallowed by the purchasers of theatrical rights. Sometimes the producer sells distribution rights to the distributors even before the release of the film. The producer sells the “Theatrical Rights” of his film to "All India distributors” or a third party. The Distributor: The Distributor is the most important link between producers and theatres.
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