GROSS = Total Ticket Sales - Maintenance Charge
Maintenance charge goes to the theatre owner or lease holder(depending on the terms).
2/- for a/c theaters (On EVery Ticket Sold)
1/- for non a/c Theaters ( On EVery Ticket Sold )
NETT = GROSS - [TAX & Others]
TAX is levied on gross.it varies depending on the type of the area and theatre.
SHARE = NETT - RENT
NETT GROSS AND GROSS:
The amount collected at the ticket window is taxed in India. This tax is called entertainment tax. These taxes vary from state to state. Nett gross figures are always after this tax has been deducted while gross figures are before this tax has been deducted. The entertainment tax rate has come down a lot in practically all the states since 2003. The highest rate today is in Uttar Pradesh of 60%. The gross collection of a film at the present time (2010) can be anywhere from 30-35% higher than the nett collections today depending on where the collections are coming from.
DISTRIBUTOR SHARES:
The distributor shares are what the industry is interested in as they are the bottom line. The distributor shares are nett gross minus theatre rentals. The theatre rentals vary. Multiplexes give 50% in week one, 42.5% in week two, 37.5% in week three and 30% thereafter to the distributor. If a film collects 17.50 crore nett from the six major chains then the first week and second week share is 52.5% and 45% respectively. Single screens are mainly on rental for big films so if a film generates big collections then 80% or even 90% of that can be the distributor share. It all depends on how ahead the collection is of the theatre rental. Smaller films find it hard to get a release at single screens as exhibitors know that the film may even struggle to collect the theatre rental. So single screens exhibitors are very choosy when it comes to showing a smaller film at their theatre.
Share Guarantee (SG):
Theatre owner will offer SG's to distributors.If he gets more than SG , have to pay the overflow to distributor
Minimum Guarantee (MG) :
Theatre owner / Third party will offer MG to distributors . If Third party / theatre owner gets more than MG.then they will share the amount in 50 : 50 ratio.
Maintenance charge goes to the theatre owner or lease holder(depending on the terms).
2/- for a/c theaters (On EVery Ticket Sold)
1/- for non a/c Theaters ( On EVery Ticket Sold )
NETT = GROSS - [TAX & Others]
TAX is levied on gross.it varies depending on the type of the area and theatre.
SHARE = NETT - RENT
NETT GROSS AND GROSS:
The amount collected at the ticket window is taxed in India. This tax is called entertainment tax. These taxes vary from state to state. Nett gross figures are always after this tax has been deducted while gross figures are before this tax has been deducted. The entertainment tax rate has come down a lot in practically all the states since 2003. The highest rate today is in Uttar Pradesh of 60%. The gross collection of a film at the present time (2010) can be anywhere from 30-35% higher than the nett collections today depending on where the collections are coming from.
DISTRIBUTOR SHARES:
The distributor shares are what the industry is interested in as they are the bottom line. The distributor shares are nett gross minus theatre rentals. The theatre rentals vary. Multiplexes give 50% in week one, 42.5% in week two, 37.5% in week three and 30% thereafter to the distributor. If a film collects 17.50 crore nett from the six major chains then the first week and second week share is 52.5% and 45% respectively. Single screens are mainly on rental for big films so if a film generates big collections then 80% or even 90% of that can be the distributor share. It all depends on how ahead the collection is of the theatre rental. Smaller films find it hard to get a release at single screens as exhibitors know that the film may even struggle to collect the theatre rental. So single screens exhibitors are very choosy when it comes to showing a smaller film at their theatre.
Share Guarantee (SG):
Theatre owner will offer SG's to distributors.If he gets more than SG , have to pay the overflow to distributor
Minimum Guarantee (MG) :
Theatre owner / Third party will offer MG to distributors . If Third party / theatre owner gets more than MG.then they will share the amount in 50 : 50 ratio.
