The Rs. 250 cr approx is the Gross Box Office Collection (GBOC). This includes movie ticket money, and also a part of the revenue from vehicle parking and snack counters (These are generally run by third parties, who have to give a share of their earnings to the exhibitor).
Then the money which goes towards taxes (like entertainment tax) and service tax, are deducted. The remaining amount is the Net Box Office Collection (NBOC), which is around 185 crore for Baahubali.
Now, the exhibitors (theatre owners) take their share of this amount, known as theater rental , and the rest goes to the distributor, which is called the Distributor Share, which stands at Rs. 145 crore for this film. This distributor share varies with each week. In the opening week, the share would be around 50-60% for multiplexes and somewhere around 70-80% for single screens, based on prior negotiations.
This is how the percentages are decided:
Rights for the movies with famous stars are bought at high prices, so the percentage share of the distributor is high for these movies. In low key releases where the distributor doesn't shell out much , the exhibitor gets a better share, since the prospects are risky.
This distributor share decreases by around 10 percent with each week after the release. Hence, the distributor has to retrieve most of his/her investment in the first week, or in the second week at the most.
Now, coming to what the producers would get from the distributor share.
Actually, they get most of their money back even before the release of the movie, as Non Refundable Advance (NRA) from the distributors who shell out money to acquire distributor rights .
Pre Release Business:
Note: In NRA basis, post the NRA amount, the distributor share is split as 80: 20 percent between the distributor and the producer. I think it's a typo in this pic.
This infographic would give you an understanding of the pre-release business done . It might be missing some areas, so the total pre release business might be around 180cr.
The scenario post release: Take the Nizam distributor Dil Raju for example. He paid 25 crore for the rights. Till he gets a distributor share of 25 crores, he wouldn't need to pay anything to the producers. Once the distributor share in his area reaches 25 cr, he has to share the profits on a percentage basis (80 percent to him, and 20 percent to the producer).
Then the money which goes towards taxes (like entertainment tax) and service tax, are deducted. The remaining amount is the Net Box Office Collection (NBOC), which is around 185 crore for Baahubali.
Now, the exhibitors (theatre owners) take their share of this amount, known as theater rental , and the rest goes to the distributor, which is called the Distributor Share, which stands at Rs. 145 crore for this film. This distributor share varies with each week. In the opening week, the share would be around 50-60% for multiplexes and somewhere around 70-80% for single screens, based on prior negotiations.
This is how the percentages are decided:
Rights for the movies with famous stars are bought at high prices, so the percentage share of the distributor is high for these movies. In low key releases where the distributor doesn't shell out much , the exhibitor gets a better share, since the prospects are risky.
This distributor share decreases by around 10 percent with each week after the release. Hence, the distributor has to retrieve most of his/her investment in the first week, or in the second week at the most.
Now, coming to what the producers would get from the distributor share.
Actually, they get most of their money back even before the release of the movie, as Non Refundable Advance (NRA) from the distributors who shell out money to acquire distributor rights .
Pre Release Business:
This infographic would give you an understanding of the pre-release business done . It might be missing some areas, so the total pre release business might be around 180cr.
The scenario post release: Take the Nizam distributor Dil Raju for example. He paid 25 crore for the rights. Till he gets a distributor share of 25 crores, he wouldn't need to pay anything to the producers. Once the distributor share in his area reaches 25 cr, he has to share the profits on a percentage basis (80 percent to him, and 20 percent to the producer).
