Manikarnika review thread *Final Warning Pg115*(move to next thread) - Page 54

That's good, the 2nd weekend should also do well, relatively lesser than the 1st weekend but average numbers should be good.

Distributors cost is 65CR.

Therefore, 2nd week will confirm how much of recovery.

If it chugs along 2nd week at expected levels... then it may have some remaining juice in week 3 that is currently open. Let's see how the coming weekend helps.

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

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 1 Week 2 Week 3 Thereafter
Multiplex 50% 42% 37% 30%
Single Screens 70-90% 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%.

Multiplex Single Screen
Footfall 100 100
Average Ticket Price 120 60
Gross Collection 100 * 120 = 12000 100 * 60 = 6000
Entertainment Tax 0.3 * 12000 = 3600 0.3 * 6000 = 1800
Net Collection 12000 3600 = 8400 6000 1800 = 4200
Distributor Share Fixed 4200(50% > 0.5 * 8400 = 4200) Between 2940 and 3780(70% > 0.7 * 4200 = 2940 /90% > 0.9 * 4200 = 3780)

... that's read so complicated .. 😆 .. I may just have to wait till someone gives out the verdict .. 😆

One poster mentioned if it's sold for 60 then return has to be 120 to be a hit ... then why Padmavat gets BB tag with 282cr on a budget of 220cr?! .. [Anyone else is also welcome to explain if you like ..😆]

Hiya, let's see if I can bring some clarity. I remember the old format of BoxOfficeIndia described the theatrical verdict situation like this ---

Now Padmavati, if I recall correctly for the theatrical rights, was sold by Viacom for 110ish crores before it was tossed for a spin with all the bans and whatnot. If we follow BOI's rule of thumb then it makes sense Padmavati's theatrical earnings more than doubled/ tripled its all India distribution cost. Super hit/ BB all semantics really at the end of the day.

This movie, sold at 65cr, needs about 120cr to be a HIT! .. Seeing the numbers and trend it may be a "semi-hit to a hit"!