#7 How Does Bollywood Movies Make Money💰?

Hey Infinities,
This is a familiar word for Indians 'Movies'. And especially "Bollywood Movies". From my experience Indians are fond of watching "Bollywood Movies". Many of them watch other movies also like Tollywood & Hollywood. But on this article you will be getting the knowledge about "How Does Bollywood Movies make Money💰?

Film Distribution in India
Distribution is the integral part of the Movie Business, it is the way a financier or a film producer gets back their returns. This article gives you the complete explanation about the Indian Film Distribution.

Producer: A person who invest for making the Films is called Producer. They invest in films under a “Production House” brand name: For an instance, the film producer “Karan Johar” owned Dharma Productions he producing films under that Brand name. A film Producer is responsible to manage all the expenses in film such as payment for the artists, technicians and managing the daily expenses.

Cost Of The Film: Pre-production+ Film Production+Post Production+ Advertisement Expenses (Condition: 2% to 4% of poster publicity expenses will be debited from Exhibitors)

Distributor: A person who distributes the film through the theatres is called film distributor. The distributor buys the “distribution rights” from the producer, mostly in the very beginning itself (or) sometimes after previewing the final cut. However, the pre-acquiring of film distribution right is based on the casting, crew, director, story and the producer’s past success. Also, Now days it is a usual tendency in film distribution in India that the producers itself, distributing the films without a third party (or) an independent film producer. They were implementing this method is because of avoiding the distributor expenses.  On the basis of entertainment tax and state-to-state connectivity, Film Distribution. Association of India divided the state provinces into 11 circuits for distributing the films. Sometimes the distributors directly distribute films to all these Circuits, while other times the main distributor rent (or) sell films to a local film distributor.

Exhibitors: According To Film Glossary, a person who owned theatre is called an Exhibitor. There are two ways an exhibitor, getting right to display a film in their theatre. The first method is, on the basis of a pre-agreement with a distributor hire theatre to showcase their films. The Second method is, the releasing centres (A Class Theatres) give advance money payment (theatre advance) to distributors for getting the right to display that particular film in their theatre. Above, the Secondly explained method of Film Releasing is dependable on the basis of cast and crew; sometimes it is based on the tie-up between Film Distributor and Exhibitor. Distributors get the return from the theatre and it is known as “Distribution Right”. The ‘Distribution right’ is calculated on the basis of an agreement with the theatre owner/Exhibitor Association and film distributor.

Hold Over: If, a Film not earns 70% of revenue from all of its three theatrical shows (A Day Count), then it is called as ‘Hold Over’. In such a case there will be a 10% less in Profit Percentage Sharing of distributors in the first week and 5% less in next two weeks.

After Five-seven weeks, the producer also has right in the ‘Distribution Share’. But, the condition is- if the distributor buy the film wholly from a producer, then the producer is not entitled to get any theatrical distribution share and satellite right (sometimes) from  the distributor.

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