Box Office question- Hypothetical situation. - Page 2

Originally posted by: Angel-likeDevil

^^acha acha.. I see.

..So, currently, what's happening... how's the supply chain today??

Someone please summerize in bullet points :D

I thought it was Producer selling to Distributer and then Distributer selling to Exhibitors who makes a deal with theatres, and then backward flow of profits depending on the success of the movie?

Originally posted by: .Lakhan.

Minimum Gurantee Amount is paid by Theatre owners only, on which they get prints. Never heard they getting film for free, in this way those disaster films, they would never pay a single penny.

This practice already exists with Big chain multiplexes like PVR. They don't pay to 'buy' a film but keep 50% of the first week sales on their properties. The percentage keeps decreasing as the weeks go by.
If you're a single screen theatre or an independent multiplex, you usually have to pay some sort of premium to play the film on your property though.

Usually a producer with the help of financiers makes a film. He then sells it to a studio like Fox for instance for a mark-up. The studio then markets the film and either releases it itself or sells it to regional distributors for a slight profit who then sell it to theatre owners/exhibitors.
A film's verdict is in conjunction with its landing cost. If a film only released in big chain multiplexes and the studio released it itself, the landing cost would be whatever the studio paid for it + Prints + marketing cost. It would still never be just the cost of the film. Hope that makes sense. If not, there's always BOI.