Author Topic: Share, Gross And Net  (Read 1915 times)

Offline pawanist

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Share, Gross And Net
« on: September 09, 2013, 11:30:50 AM »
GROSS = Total Ticket Sales - Maintenance Charge.
 

 Maintenance charge goes to the theatre owner or lease holder(depending on the terms).


2/- for a/c theaters
 
1/- for non a/c Theaters   
 

 
 NETT = GROSS -
[TAX & Others]

 

 TAX is levied on  gross.It differs depending on the type of the area and theatre.

 

 
 SHARE = NETT - RENT.

 

 

 

 Share Guarantee (SG):

 

 Theatre owner will offer SG's to distributors.If he gets more than SG , have to pay the overflow to distributor

 

 Minimum Guarantee (MG) :

 
Theatre owner / Third party will offer MG to distributors  . If Third party / theatre owner gets more than MG.then they will share the amount in 50 : 50 ratio.
 

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« Reply #1 on: September 09, 2013, 04:39:02 PM »
 :c017:

Offline manikumar18

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« Reply #2 on: September 13, 2013, 11:19:56 PM »
good post

Offline siva

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« Reply #3 on: September 29, 2013, 12:40:07 PM »
బాలీవుడ్‌ 100 కోట్ల క్లబ్‌ను దాటి.. 300కోట్ల క్లబ్‌లో ఎప్పుడో చేరిపోయింది. ఈ నేపథ్యంలో టాలీవుడ్‌ 100కోట్ల క్లబ్‌లోకి చేరుతుందా? అన్నదే ప్రశ్న. అయితే ఒకేసారి మనం అంత రేంజుకి వెళ్లిపోవడం కష్టమే. మన సినిమా పూర్తిగా ప్రాంతీయం. వేరే భాషల్లో మన హీరోలకు క్రేజు పెరగ లేదింకా. తెలుగు హీరోలకు ఇతర భాషల్లో మార్కెట్‌ పెంచుకునే వ్యూహం కొరవడడం వల్లే ఈ వెనుకబాటు తనం అని ఎప్పట్నుంచో విశ్లేషకులు విమర్శిస్తూనే ఉన్నారు. అయితే పవన్‌కళ్యాణ్‌, మహేష్‌ లాంటివాళ్లకు భాషతో సంబంధం లేకుండా అన్నిచోట్లా వీరాభిమానులున్నారు. కాబట్టి వంద కోట్ల క్లబ్‌ వీళ్లకు సాధ్యమే. ఇంతవరకూ టాలీవుడ్‌ 50కోట్ల బెంచ్‌మా ర్క్‌ను చేరగలిగింది తప్ప కచ్ఛితంగా వంద కోట్ల క్లబ్‌కి చేరే భరోసా ఏమీ ఇవ్వలేదు.

ఒక్క రామ్‌చరణ్‌ ‘మగధీర’ మాత్రమే దాదాపు రూ.89 కోట్లు వసూలు చేసి ఆ దరిదాపుల్లో ఇంకే సినిమా లేదని నిరూపించింది. అయితే రూ.50కోట్ల పైచిలుకు వసూళ్లను సాధించిన సినిమాలు అరడజనుపైనే తెలుగులో ఉన్నాయి. వాటిలో పవర్‌స్టార్‌ పవన్‌కళ్యాణ్‌ నటించిన ‘గబ్బర్‌సింగ్‌’ దాదాపు రూ.65 కోట్లు వసూలు చేసి రికార్డ్‌ సృష్టించింది. ఆ తర్వాత మహేష్‌ హీరోగా నటించిన ‘దూకుడు’ దాదాపు రూ.60 కోట్లు ఆర్జించింది. రామ్‌చరణ్‌ ‘రచ్చ’ ఈ దరిదాపుల్లో.. అంటే తమిళ, మలయాళ వసూళ్లు కలిపి 63కోట్ల వరకూ వసూలు చేసింది. రచ్చ ఒక్క ఆంధ్రప్రదేశ్‌లో రూ.48కోట్లు ఆర్జించిందని బాక్సాఫీస్‌ రిపోర్ట్‌. అల్లు అర్జున్‌ ‘జులాయి’ మలయాళ మార్కెట్‌ కలుపుకుని దాదాపు రూ.46కోట్లు కలెక్ట్‌ చేసింది. పోకిరి, జల్సా 40కోట్ల క్లబ్‌ సినిమాలు. ఎన్టీఆర్‌ ‘బాద్‌షా’ 50కోట్ల వసూళ్లు సాధించింది.

లేటెస్టుగా మళ్లీ ఆ రికార్డుల్ని తిరగరాస్తూ పవన్‌ ‘అత్తారింటికి దారేది’ రూ.70కోట్ల క్లబ్‌లోకి చేరుతుం దని విశ్లేషకులు అంచనాలు వేస్తున్నారు. ఈ సినిమా ఒక్క రిలీజ్‌రోజే దాదాపు రూ.15కోట్లు వసూళ్లతో రికార్డ్‌ సృష్టించింది. మూడు రోజుల్లో రూ.40కోట్లు ఆర్జించినా పవన్‌కళ్యాణ్‌ రూ.70కోట్ల క్లబ్‌లో చేరడం కష్టమే మీ కాదని ట్రేడ్‌పండితులు విశ్లేషిస్తున్నారు. బాలీవుడ్‌ తర్వాత రూ.100 కోట్ల క్లబ్‌లో చేరే సినిమాలు ఒక్క తమి ళంలోనే వస్తున్నాయి. ఆ రికార్డ్‌ మనవాళ్లకు సాధ్యం కావాలంటే.. మన హీరోలు తమిళ్‌, కన్నడ, మలయాళ మార్కెట్‌తో పాటు ఉత్తరాది మార్కెట్లోనూ గణనీయమైన వసూళ్లను తేగలిగితేనే రూ.100కోట్ల క్లబ్‌లోకి చేరగలరని ఎనలిస్టులు చెబుతున్నారు.
suryaa

Offline siva

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« Reply #4 on: September 29, 2013, 12:50:08 PM »
Ee artciles rase vallaki gross ku share ku teda teliyadu. Eppdudu maarutaro veellu?

The top all time all India distributor sharesin the history of Hindi film industry are listed below.
   
1. Three Idiots (2009) - 99.02 crore
 
2. Bodyguard (2011) - 79.49 crore
 
3. Dabangg (2010) - 76.84 crore
   
4. Agneepath (2012) - 65.53 crore
 
5. Ready (2011) - 64.58 crore
 
6. Ra.One* (2011) - 63.61 crore
 
7. Ghajini (2008) - 59.89 crore
 
8. Golmaal 3 (2010) - 57.71 crore
 
9. Gadar Ek Prem Katha (2001) - 57 crore

 
 
10. Don 2* (2011) - 55.14 crore
 
11. Hum Aapke Hain Kaun (1994) - 53 crore
 
12. Singham (2011) - 49.77 crore
 
13. Raajneeti (2010) - 48.72 crore
 
14. Dhoom 2 (2006) - 46.50 crore
 
15. Dilwale Dulhania Le Jayeng (1995) - 45 crore
 
16. Rab Ne Bana Di Jodi (2008) - 43.64 crore
 
17. Zindagi Na Milegi Dobara (2011) - 41.34 crore
 
18. The Dirty Picture* (2011) - 40.48 crore
 
19. Om Shanti Om (2007) - 40.15 crore
 
20. Krissh (2006) - 39.25 crore
 
21. Housefull (2010) - 37.31 crore
 
22. My Name Is Khan (2010) - 36.94 crore
 
23. Welcome (2007) - 36.69 crore
 
24. Raja Hindustani (1996) - 36.50 crore
 
25. Singh Is Kinng (2008) - 35.32 crore
 
26. Kabhi Khushi Kabhie Gham - 35.25 crore
 
27. Wanted - 35.02 crore
 
28. Kuch Kuch Hota Hai - 34.25 crore
 
29. Lage Raho Munnabhai (2006) - 34 crore
 
30. Tees Maar Khan (2010) - 33.94 crore
 
31. Rockstar (2011) - 33.74 crore
 
* Hindi Only

Offline siva

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« Reply #5 on: November 08, 2013, 02:29:08 PM »
Gross and Net concept in India

With most biggies easily crossing 100 crores at the box-office and ‘superstar status’ being judged based on the number of films a star has in the ’100 crore club’, there is huge interest around box-office numbers.
But not many are aware that a 100 crore film, actually collects much more at the ticket window and a part of it goes towards ‘entertainment tax’.

For example, 3 Idiots in total collected Rs 270 crores at the box-office, out of which about 67-68 crores was paid as ‘entertainment tax’. Hence, the final nett figure is Rs 202 crore.
Unlike several other countries in the world, movies are taxed in India and these taxes vary from state to state.

Entertainment tax in various states in India
State                   Entertainment Tax              Note

Maharashtra           45%                                   Marathi films are tax free
Delhi                     30%                                    --
Gujarat                  20%                                   --
Chandigarh            50%                                   --
Haryana                 50%                                   --
Chattisgarh            30%                                   --
Karnataka               40%                                  Kannada films are tax free
Kerala                    30%                                   --
Madhya Pradesh      20%                                   --
Himachal Pradesh    Tax Free                             --
Jammu & Kashmir    Tax Free                             --
Andhra Pradesh       21%                                  For in state films - 8% for low budget, 16% for high budget.
Punjab                    Tax Free                            --
Rajasthan               Tax Free                             --
Tamilnadu              15%                                   Tamil films are tax free
Uttar Pradesh         60%                                   Should be slashed to 30% soon
West Bengal           30%                                   10% for Bengali and Nepali Films

In short, the total money collected at the ticket window, minus entertainment tax, is the final nett gross. Below is a table with various examples.

Movie                                      Gross           Entertainment Tax            Final Nett Gross
3 Idiots (2009)                        269.5 crore    67 crore                              202.5 crore
Dabangg (2010)                      187.5 crore    47.4 crore                           140.1 crore
My Name Is Khan (2010)          96.75 crore    24 crore                               72.74 crore
Gadar (2001)                          130.25 crore   54.75 crore                          75.50 crore
Hum Aapke Hain Kaun (1994)  123 crore        53.25 crore                          69.75 crore

Notice the difference between Gadar in 2001 and My Name Is Khan in 2010. Although Gadar collected much more at the box-office, the nett gross is almost the same as My Name Is Khan. The entertainment tax in India has dropped significantly over the last decade, and should drop further in the next few years.
« Last Edit: September 21, 2014, 02:17:36 PM by siva »

Offline siva

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« Reply #6 on: December 03, 2013, 10:00:01 AM »
The whole idea behind this write up is to make each and everyone understand the complex box office model in India. Any questions, please ask in the comments section below.

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.

Exhibitor (Theatre): In layman terms, Exhibitor is nothing but a theatre owner. The theatres form the end of the box office model. On pre-defined agreements with the exhibitors, the distributors hire their theatres to showcase films. There are two types of theatres in India: (i) Single Screens (ii) Multiplex Chains and both have different kind of agreements with distributors. This agreement focuses mainly on “Number of Screens” and “Monetary Returns” to be paid back by theatres to Distributors.


Entertainment Tax (All India average of 30% approx) is deducted from the total collections at the ticket window. This tax is enforced by individual state governments and thus differs from circuit to circuit. After taxes, a percentage of the total nett gross is paid back to the Distributors. This return is known as “Distributor Share”.
Box Office Model height=343
Box Office Terminology:
 
  • 1) Cost of Film = [Budget + PA (Promotion & Advertisement) Expenses]
  • 2) Non Theatrical Revenues = Satellite Rights + Music Rights + Overseas subsidy etc.
  • 3) Footfalls = Total number of tickets Sold
  • 4) Gross Collections = Total money collected from ticket sales
  • 5) Net Collections = [Gross collections – Entertainment Tax]
  • 6) Distributor Share is generally calculated as below:

 
Week 1Week 2Week 3Thereafter
Multiplex50%42%37%30%
Single Screens70-90%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.
 
  • 7) 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%.
 
MultiplexSingle Screen
Footfall100100
Average Ticket Price12060
Gross Collection100 * 120 = 12000100 * 60 = 6000
Entertainment Tax0.3 * 12000 = 36000.3 * 6000 = 1800
Net Collection12000 – 3600 = 84006000 – 1800 = 4200
Distributor ShareFixed 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.

Hit vs Flop: General norm is that the collection of a film judges how big success it is. But, this is false. In reality it is the Distributor Share which decides a film’s fate because it takes into account both the film’s cost & its box office performance. A film may be called a FLOP fare if it collects 60cr net because of its huge costs to the makers and distributors. On the contrary, another film may turn out to be HIT even if nets 40cr only due to low budget.

Footfalls An Untold Story: While writing this article, I realized that there is a parameter which is not quite explored/considered in judging box office numbers. And that is Footfalls – i.e the number of people going to watch a film in theatre. One may figure out quickly from above facts that even if more people visit a Single Screen than a Multiplex, Multiplex always has a lead due to high ticket prices. Do you know which films are biggest hits if we consider only footfalls? By that norm, Gadar (Footfall = 4 crore) is the All Time Biggest HIT of Indian Cinema. Sholay and 3 idiots follow with footfalls in the range 3 cr and 2.75 cr respectively.
« Last Edit: December 03, 2013, 10:06:29 AM by siva »

Offline PKFANEKKADA

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« Reply #7 on: August 19, 2015, 02:34:00 PM »
Thanks for this info bro I always wonder what is the difference between NET, GROSS and SHARE, now its clear.

Offline MbcMen

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« Reply #8 on: August 22, 2015, 05:25:14 PM »
Baahubali reached 600 Cr Collections world wide, this is the first movie to got the collections in south industry.

Offline MbcMen

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« Reply #9 on: September 26, 2015, 04:55:47 PM »
Thanks for your post, you are providing a valuable information about Share, Gross and Net.

Offline poojasl1

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« Reply #10 on: December 12, 2015, 01:45:49 AM »
Nice, and thanks for sharing.

 

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