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Kyon Bey

@Sultan.Mirza

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Posted: 8 years ago

#51

Originally posted by: ZorZorSe
my question actor on profit share so how producer can tell cost of film ?

COST OF FIlm = That is different from any profit share deal which is made after it is completed & film is ready for release. That COST is Total amount spent on Film's making.

Actor on Profit Share = Actor won't charge his full fees from Producer, he will charge like 50%, then he will ask for Profit Share which will be profits coming from Mutilplex & Single Screens in coming weeks. This is risky proposition as if film tanks badly, actor won't get profit. So to chalk out this, Big Stars do % Profit sharing as they guarantee a certain amount, after which they will get profit. Big Stars know their films will do that much only.

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MalahFirangi

@MalahFirangi

Rocker

+ 2

Posted: 8 years ago

#52

Originally posted by: .Omkara.

COST OF FIlm = That is different from any profit share deal which is made after it is completed & film is ready for release. That COST is Total amount spent on Film's making.

Actor on Profit Share = Actor won't charge his full fees from Producer, he will charge like 50%, then he will ask for Profit Share which will be profits coming from Mutilplex & Single Screens in coming weeks. This is risky proposition as if film tanks badly, actor won't get profit. So to chalk out this, Big Stars do % Profit sharing as they guarantee a certain amount, after which they will get profit. Big Stars know their films will do that much only.

sso with this formula who can take risk for profit share if film flop than its mean zero earning.😲

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Kyon Bey

@Sultan.Mirza

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Posted: 8 years ago

#53

Originally posted by: ZorZorSe

sso with this formula who can take risk for profit share if film flop than its mean zero earning.😲

This came in recent years. Ajay, Srk, Salman & Aamir all do this kind of deal.

Salman - He takes Satellite rights deal, he will own all his film's satellite rights, so in future also he will keep on earning as per how big hit his films were.

Ajay / Srk - They distribute their own films, which gives them more revenue than what they will earn on just charging a fees.

Aamir - He was having profit sharing in Dhoom 3, PK. Dhoom was big from start, even at HIT verdict kind of business he would have cross that profit mark. PK was coming after 3 Idiots, Aamir knew how much he can score, he must have cracked it on that.

These stars are also producing films, Khans doing mostly their own produced films, except for Salman, who has just started, Srk is doing maximum is own films. So when they are themselves Producers, this Profit sharing model changes, they become DISTRIBUTOR, Release their films direclty & whatever it earns goes directly in their profit. When they sell films for 1 whole RIGHT - India/OS, like Srk did for Dilwale / Raees & now Rehnuma, they make heavy table profit even before release.

This business is so much complex that unless someone is working in any distribution office, or working in a production house, or is a exhibitor (cinema owner), we won't get any Clear 100% view of how these stars make profit or how profit share works. There is no TRANSPARENCY, so only analysis done is from Trade reports coming on those trade sites.

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bokul

@bokul

Master

+ 3

Posted: 8 years ago

#54

If a film is sold to the distributor at 100 crore then for it to be Hit does the distributor have to get back at least 101 crore ? and if the film makes 200 crore then will it be Super Hit ? BB on 300 and ATBB on 400 ?

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Kyon Bey

@Sultan.Mirza

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Posted: 8 years ago

#55

Originally posted by: -DZ-
If a film is sold to the distributor at 100 crore then for it to be Hit does the distributor have to get back at least 101 crore ? and if the film makes 200 crore then will it be Super Hit ? BB on 300 and ATBB on 400 ?

Very few films come in this bracket of selling at 100 Cr.

What happen actually is this kind of division:

1. Film making production cost: 70 Cr

2. Distributor purchase price: 100 Cr

3. This purchase price will have options = Either ALL RIGHTS [Theatrical, music, video, satellite etc.] or Having just Theatre release rights [ India+Overseas].

INDIA is divided into 13 circuits, possible scenarios:

1. It is possible that producer can sell some circuits to different distributor & can keep some circuit for himself to distribute film.

2. It is possible producer can sell INDIA rights to 1 distributor & OVERSEAS rights to another. Like recently NH Studio got India rights of Tubelight & YASH RAJ got Overseas rights to release.

3. It is possible producer sell 100% rights to 1 Distributor only.

4. Big Studio like Yash Raj don't sell their rights, they distribute on their own.

5. To be on safer side, that distributor which is having All Rights, might sell film to few circuits to smaller distributors, in this way their loss projection is reduced.

SUCCESS of that 100 Cr purchased Film by Distributor:

1. It should have minimum 15 Cr more than Purchased price as it's Distributor Share, then only it will come in HIT Category.

2. After which if it is 130+ Cr Distributor Share, Super Hit

3. After which if it is 145+ Cr Distrobutor Share, Blockbuster.

4. It should be ATBB after 155+ Cr Distributor Share, or in some case 162+ Cr.

Film ka jo NETT aata hai, which we hear all the time that this film is 100 cr film, 200 cr, 300 cr, that doesn't matter that much for verdict, main is DISTRIBUTOR SHARE, usi se sabhi verdict aate hai.

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bokul

@bokul

Master

+ 3

Posted: 8 years ago

#56

^^ Thanks
Sounds quite complicated

Then why do people not sell films at very low price like say for example at 30 crore ?
Nowadays producers earn even before release by satellite rights music rights etc
If they sell it at high price to distributors then there is a risk of loss

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Kyon Bey

@Sultan.Mirza

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Posted: 8 years ago

#57

Originally posted by: -DZ-
^^ Thanks
Sounds quite complicated

Then why do people not sell films at very low price like say for example at 30 crore ?
Nowadays producers earn even before release by satellite rights music rights etc
If they sell it at high price to distributors then there is a risk of loss

Industry don't worry about VERDICT, they don't bother film having FLOP verdict, they only want MONEY Invested plus some Profit. They themselves knew how good/bad their films are, so they aim for only profit.

Some Big films if sold @ low price can get ATBB Verdict, but they don't bother. They want money only even if verdict turns out to be disaster after they ask for huge price of their films.

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bokul

@bokul

Master

+ 3

Posted: 8 years ago

#58

^^ But in the long run if the films flop then that affects their credibility in the market right ? It can become difficult for them to get distributors later ?

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Kyon Bey

@Sultan.Mirza

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Posted: 8 years ago

#59

Originally posted by: -DZ-
^^ But in the long run if the films flop then that affects their credibility in the market right ? It can become difficult for them to get distributors later ?

In Mumbai, only 1 thing they want to gain - Money. Long run they don't think. Mostly producers / production house Lease huge money from banks or other sources. Pressure of return is high, so they don't give 2 hoots for getting a HIT or Flop.

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Karenina

@Karenina

Inactive

Posted: 8 years ago

#60

Originally posted by: .Omkara.

There are different slabs of PROFIT. Every trade site has their own formula to judge it.

BOI keeps on changing this formula, Fan sites like Adda today / Indicine copy data from BOI, make their own style of Verdicts.

If criteria has to be made, then it should be like this:

ATBB = 300% profit

BLOCKBUSTER = 200% profit

SUPER HIT = 150% profit

HIT = 100% profit

This can't be calculated accurately coz EXACT SELLING PRICE OF all films is never revealed nor acquired by any trade site in any way, after which we can analyse by comparing it with BUDGET.

The day any trade site will feature.

Exact BUDGET, SELLING PRICE & minimum NETT / SHARE required for film to get those verdicts, it will be as per current trade sites.

I think the 300% formula is the old one in which BOI declared Ghajini and Dabbang as ATBBs. Since then, hasn't the site claimed that any movie to become an ATBB must be #1 or closely #2 in every circuit? Think 300% ROI alone isn't enough for an ATBB status anymore.

If BOI strictly followed the 300% ROI, I reckon Ghajini, Dabbang, ETT, CE, and Sultan would all be ATBBs.

This formula is flawed btw. And, I still find it funny that Dhoom 3 was an ATBB.

Originally posted by: ZadayKiDaig
Honestly, how do you feel when bb2 and dangal performed beyond amazing and Salman could never make his record.

I'd like to answer this question. Baahubali 2 is a generational Blockbuster along the lines of only 7-8 Blockbusters in the history of Hindi Cinema (Kismet, Rattan, MI, MEA, Sholay, HAHK, and Gadar).

Dangal, on the other hand, is the biggest Blockbuster India has seen in China. The India business isn't a big deal, but what it did in China is quite simply stupendous.

People seem to forget that HAHK is the movie that opened the market for Hindi films overseas. In this case, Dangal seems to be the movie that has opened the market for Hindi movies in China. Like, say, Raj Kapoor is considered the man to have popularized Hindi cinema in Russia (and former Soviet Union countries).

What's positive is how Hindi/Indian cinema is growing in various parts of the world. I'm proud that India is the only country in the world where Hollywood hasn't taken over national/regional cinema. It's amazing.