Originally posted by: bafflingtulip
Many movies are promoting that they have already made profit through satellite etc etc so why is this not factored in the status of a movie being hit or flop?
Film
Production Cost = 30 Cr
Promotion & Advertising (P&A) = 15 Cr
Distributor purchase film = 35 Cr
Distributor spends that above P&A also, so budget becomes = 50 Cr
How Film is SOLD / PURCHASED?
This is based on few model of business:
1. Producer can sell whole film's ALL INDIA/OS Rights to Single Distributor @ price.
2. When Distributor gets it, he can Distribute on his own All over, or he can sell few circuits to 3rd party.
3. Now in this SATELLITE RIGHTS, MUSIC RIGHTS, VIDEO RIGHTS also come, some more things.
4. If any DISTRIBUTOR Purchased whole package means Every RIGHT, he will sell it as per their company wish.
You must be hearing 500 Cr deal, 1000 Cr deal for Salman, Hrithik, Ajay for their TV Satellite rights. That is combine deal for 10 films.
A film made on 70 Cr project by producer, he will see RETURN OF INVESTMENT.
This comes from THEATRICAL BUSINESS, Overseas, TV, VIDEO, MUSIC etc. etc.
While analyzing BOX OFFICE of film, we only pick INDIA THEATRICAL BUSINESS, whatever it earns from that section is HIT or FLOP, nothing else matters.
A Flying Jatt is SUPERHIT on TV, in Cinema it was FLOP, so should we change it's verdict? Nahi.
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