Film making is an expensive job, the money involved in this has to be arranged by the filmmaker . This money is spent in all the three phases of film production, preproduction, production and post production. This includes fees for writers, directors, actors to junior artists and other crew members, as well as transportation, food and other expenses. After the film is completed, it is time to sell it. The filmmaker decides the price of the film by adding his profit to his cost. The film which has big stars, its price is high. For this, the distributor or distributor is selected. The distributor who is ready to pay more for the film is given the rights of the film. in this
The prior relationship between the distributor and the producer also plays an important role. Films with big star cast are the first choice of the distributor. Although it’s like a business blind game because having a super star in a film doesn’t guarantee its success, films like “Thugs of Hindostan” are examples.
earning money from film
1. By promoting a product –
2. Through Distributor –
A person who buys the right to screen a film through theatres, is called a film distributor . The distributor considers the film’s story, casting, director and producer’s past success before purchasing “distribution rights” from the producer. If the producer sells his film to a distributor , then the profit of the producer gets fixed and all the risk goes to the distributor. But some producers are also their own distributors of their films, such as Rajshree Productions or Yash Raj Films etc. In such a situation, if the movie flops, the film producer has to bear its entire loss.
Based on the state-to-state connectivity, the film distribution association has made 11 circuits to distribute the films. Sometimes the producer distributes the film directly to all these circuits, while most of the main distributors sell the films to the local film distributor. Distributors are that part of the film business, whose profit and loss are not fixed. If there is a huge crowd in the ticket window and the film runs houseful, then the distributors benefit immensely. On the other hand, if only a few people come to watch the film and the film is a flop, then they do not get any benefit, but the money invested is also drowned.
An agreement is signed between the distributor and the producer, in which the terms of sharing of royalty income of the film etc. are written. Apart from India, Hindi films are also in demand in foreign countries, for this the rights of “exhibition abroad” of big films are also sold. After purchasing the film, the distributor spends money on its marketing and advertising. The sub-distributors enter into agreements with the owners of cinema theaters in their area for the release of the film in theatres. Now the net income left after paying all the taxes out of the gross income collected by selling movie tickets is shared by the owners of the theaters with the distributor. Which is divided in different ratio in multiplex and single screen cinema.
The distributor share ranges from 50 -60% in the first week of release to around 30 -35% in the subsequent weeks. It depends on the agreement between the cinema owner and the distributor.
3. By selling music rights –
If the songs of the film become a hit, then the music company gets the benefit of it. Extra earning is done by making caller tunes of songs for mobile.
4. By selling satellite rights –
A few weeks after its release in the cinema hall, the film is shown on a TV channel, for this the TV channel has to buy satellite rights from the film producer . These days satellite rights are sold at exorbitant prices and a major part of the cost of the film is taken out by selling it before its release.
5. Via Streaming Service –
Now there’s a new way to monetize a movie – allowing it to be shown on Amazon Prime or a Netflix-style subscription streaming service. The popularity of these modes of online entertainment is increasing day by day and due to mutual competition, they buy movies to beautify their catalogue. Now some filmmakers have started releasing their films on these subscription streaming services instead of theatres. Other ways of earning include allowing film screenings on planes. The small screens on the back of airplane seats are licensed to show films. The success of the film is also cashed in by creating comics and video games of hit films . Hope this article is ” Bollywood film business – how to earn from film”
If you liked it, you can share it with your friends. Write your questions and suggestions in the comment box and keep visiting this website for useful information related to movies.