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how to earn Bollywood films // Bollywood films business model

We often hear that if this film did 100 crores or 200 crores business then no movie could even  recover its cost  . Trade pundits have a special look at the earnings of the first 3 days after the release of a film.
  Box office collection figures determine whether a  film is a hit or a flop . After all, through which hands does the money for a movie ticket purchased by the spectator reach the filmmaker? Before understanding this math, we need to know how a film is made.
     Actually, like any other industry, film making is also an industry, where a  product  (film) is first prepared and sold. Like any other manufacturer, it is the endeavor of the filmmaker that his  product  (film)  is liked by the people.
   It is a different matter that even after the efforts of the filmmaker and the people associated with it, very few films are able to stand the test of the audience and are able to make profits at their cost.

    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

Film producers have different ways to earn their money –

1. By promoting a product –

Companies promote their products through magazines and TV etc. When a company wants to promote its product in a film, then it  has to pay for it by making a deal with the  film  producer. In this  deal, it is decided that for how long the company’s product will be shown in the film or the name of the company, poster or product name will be taken.
    Many times you see the lead actors in the film using a particular company’s motor cycle, car or tractor, this is the company  ‘s way of promoting its product  . This earns the filmmaker and helps in recovering the cost of film production.

 

 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.

  Cinema owners charge their weekly rent in advance for screening a low-budget regional film from a new producer. Due to this, the cinema owner is already protected when the film flops.

3. By selling music  rights –

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Earnings are made by selling the music rights of the film to the music  companies.  Music rights of big budget films are sold at good prices. Songs and music of a film cannot be used commercially without the permission of the music company that owns the rights to the music of that film.

  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” 

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