How do film producers and distributors make money in Tollywood?

I will try to answer the question in retrospective manner ( I.e., reverse engineering, what we have learnt in our graduation)

Say , a movie is made of 10 Cr.

Producers will negotiate deals with distributors.

These are of two types.

1. Completely sell the distribution rights.Here the profit or loss has to be bear by distributors.
2. Sharing of profits between distributors and producers.

After releasing in theatres, every day revenue is collected by selling tickets at theatres.

Let's say for 20 days of running, they have collected a revenue of 20 crores.

These 20 crores is called gross share.

Now from this , x %is paid as entertainment tax (say 18% : differs from state to state )

Remaining is 16.4 Cr.

Of these rent and maintainance charges has to be paid for theatre owners. ( Say 2 cr )

Now it becomes 14.4 cr.

As per the agreement between distributors and producers the profits are shared after deducting the principle amount (2nd case )

In case 1, the money will be completely taken by the distributor as they have bought exclusive rights . ( They do it auction process​)

In case if producer has brought anything ​from the financiers, he has to pay them along with agreed interest.