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Tuesday, April 28, 2020

How much profitable is movie making in bollywood?

Well making profitable movies in bollywood is itself a task.a producer needs good star cast,decent script and best of directors to make movie work.
But a producer makes money even before its release.
  1. A producer sell his movie to distributor ,a person who distributes films.this is called threatrical rights.then producer sells satellite rights,music rights,rights for vcd and dvd. Producers earns money from these rights and makes money even before its release.
  • A point to remember these rights money value is decided on basis of star power,content, producers past success
2 the real deciding factors becomes the collections of film both in domestic and overseas circuit.many feel that profit is just related with producer.thats incorrect.distributor who distributes film,exhibitors who owns movie threaters are also the link which are associated with film terminology. Sometimes a producer makes money but due to low collections distributors and exhibitors may suffer.
  • Example: if a fiilm makes 100 crore its a feeling that film is super success but truth is, it all comes down to budget. If film is made on 80 crores budget then it needs to make 160 crore at least to make 100%profit..
  • Producer recovers the film cost by selling its right.but to earn profit collections play a subtle role.
1 dilwaale: it was made on budget of 110 crores and earned just148 crores at indian box office .but because of overseas collection of 168 crores and films rights estimated value=110 crore film turned out to be a semi hit. Where as fan. .made on 110 crores budget made 85 crores at indian box office and 68 at overseas turned out to be a flop even when film sold its right at110 crores.
But why , it is because profit is not decided by producers recovery .it is based on the fact that how much distributors and exhibitors earn from the movies.they have thier individual share in collections that is week 1 60% to distributors and rest to exhibitors like that.
Rustom was made on 52 crores budget ,it sold its right to 67 crore then made 200 crore worldwide.hence everyone associated with film that is producer,distributor,exhibitors earned ptofit and it was a super hit.
Truth is our bollywood films needs either a content or a star powee to make film a profitable venture.
Lets understand some movies which are made for targeted audience like either multiplex audience running in metric,or single screen audience running in towns and cities can never be big budget because then chances of profit decreases where as same movie on a low budget can make wonders at box office.
Romantic commedy movies always find it most easy for profits because thier they have good run in single screens and also a star power can even make such movie work in multiplexes.
High budget movies need star and content otherwise its will be not such a profitable venture .

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