Boxoffice – There are several terms used when discussing collections, business etc. Track Tollywood brings you an exclusive article explaining all the BO terms in layman language!
Producer has various options to release his film through distributors. We will cover one by one.
Advance Basis – Producer can release a film in an area through a distributor on an advance basis. The producer asks for a certain amount but the entire risk/collections is for the producer. Distributor will get 6% – 8% as commission for releasing the movie.
Example: If a film is released on advance basis in the Nizam area, producer might ask for 1.5-2Cr from the distributor before the release and if the film collects 30Cr, distributor will get 1.8 – 2.4Cr as commission.
MG basis – Producer will ask a certain amount for an area from the distributor. When a film collects beyond that certain amount, profits will be shared on 50 – 50 ratio.
Example: Producer asks for 25Cr in Nizam. When the film collects 30Cr in the full run, the 5Cr beyond the breakeven mark is shared on 50 – 50 ratio (2.5Cr to producer and 2.5Cr to distributor)
NRA (Non-Refundable Advance) – As the name hints, amount is non-refundable. Producer asks for a certain amount for an area and it is non-refundable. If the film collects beyond the breakeven mark, typically 20% goes back to the producer and 80% to the distributor.
Example : Producer asks for 30Cr in Nizam. If the film collects 28Cr, it is 2Cr loss to the distributor. If the film collects 40Cr, 2Cr would go to the producer and 8Cr to the distributor.
Outright basis – Producer would sell an area like a hire. He will not have any responsibility after that. All risk and profits to the distributor.
Example : Producer sells Nizam rights for 30Cr outright to the distributor. What the film makes goes to the distributor.
Boxoffice Terms:
Other frequently used Boxoffice terms:
Breakeven Mark – The amount required for a producer or a distributor to attain breakeven (No profit or loss mark)
Gross – (No. of tickets sold x Price of ticket) – maintenance charges
Actual tickets sold multiplied by price of ticket minus the maintenance charges.
Nett – Gross – Tax
Actual Gross minus taxes.
Share – Nett – Rents
Actual Nett minus the rents.
DCR – Daily Collection Report, it is maintained by distributor on a daily basis showing the gross collections of a film in an area.
Fixed Hire – This is done by distributor for centers that are difficult to track. Usually, C centers are given for hires to 3rd party. Lately, some B centers are also given for hires.
Example : Usually, Guntur C centers are given for hires. Distributor will not track these collections and the DCR will reflect the hire amounts on day 1. The film’s revenue from day 2 will be calculated from other centers that are not given as hires.
SG (Share Guarantee) – This is done by exhibitors. If an exhibitor owns a theatre, he offers SG to the distributor for playing the movie. Typically, happens to crazy movies in towns with limited theatres.
Example : An exhibitor pays 10L for a film as SG. If the film collects 11L, the 1L beyond the 10L also goes to the distributor. You might wonder, what’s the point of doing SG. The exhibitors make money from increasing rents, parking and canteen sales.
MG – Minimum Guarantee, this is also done by exhibitors. Unlike SG, after the breakeven amount, distributor gets 20% but the exhibitor gets 80%.
Example : An exhibitor pays 10L for a film as MG. If the film collects 11L, the 1L beyond the 10L is shared as 20k to the distributor and 80k to the exhibitor.
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