Hello friends, Today, we are not talking about tech or any tricks but about Film Industry Business Model, that is, How movie producers earn money? We watch all the movies, on Cinema or TVs, and in our mind many times the idea comes about how movies earn money?
How does get money actors, director, producer from movie ? What is the Film Industries Business Plan? There are many more questions in our mind about Movies. As the movies are shown in the cinema, How does the producer get money from movie? Today we will get information from all these questions in detail.
So let’s see what is the Indian Film Industry business model? But before that he knows who and How to invest in making movies.
Movies Budget & Investment:
Whenever a new film is considered about making. So for the first time, the Movies budget is prepared and it divides into Budget 4 Part.
- film-marketing-business model
Someone is most required to make a movie, is working in movie script and development stage. Scriptwriting and Dialog
When scriptwriting is complete, then comes the pre-production stage. In this, movie shooting and casting are all planned. As the movie will shoot at what location, its actor, actress and supporting actor, who will be, Traveling & other plans.
When the full plan becomes complete, then comes the Production stage. In this, the row file of the movie is created i.e. the movie is shot according to the planned plan.
After the movie is finished shooting, its editing, music and any other work is done. They all come under Post-Production.
Now it comes to the question, who pays money from development to post-production?
How much does it cost to make a movie Such as Scriptwriting, Planning, Shooting, Traveling, Casting, Editing ect. Producer Pays all these expenses.
How to earn money Movie Producers ?
Producer has invested money in making the movie and now turn producer to make money, so let’s see how the producers earn money.
Flim Industries Business works on the Model Supply Chain and basically has 2 cases.
1st Case: There are some producers in Bollywood film industries, which are also distributors themselves. Such as Yashraj Films. It distributes itself to the movie and earns money by reaching customers.
2nd Case: Film Industry also has many Individual producers. Those who take money in movies and then earn profit by selling the distributors.
Now it comes to the fact that Producers has no benefit from film flap or hit or loss,
Most movies Producers do not make any difference, because the movie is flap or hit because they already sell the distributors with the Profit movie.
Producers when distributors give movies to sell, then it decides that the Box Office collection of the movie is so much and the film is hit or flap.
How do distributors earn money?
After the movie is purchased, the marketing and promotion of Distributors Movie takes money. After that, it starts selling Movie Right.
Movie Satellite rights sells meaning Movie earns good money on different TV Channels and distributors make a small income even before movie goes into cinemas.
After this, main work is to release the movie in theaters. For this, Distributors sell the movie at different places in the country to Sub-Distributors, which takes the movie to all the theaters.
Now when the movie is released in the cinema, after the ticket sale, theater owner earns money. They share with the distributors and this money is divided into 25:75 and 50:50 of this ratio.
In such a case, if Movie ticket is too much cell, then the movie gets hit and the distributors earn money and if the Ticket cell is not there, the distributors can not make money and get Movie Flop.
Now, to understand this whole business plan better, we understand from a real example,
Suppose Shaadi Me Jarur Aana Movie’s Budget is 20 Crore and after the movie was made, Producers sold the distributors in 40 crores,
Now here Producers has already earned Profit of 20 crores, now the distributors have bought the movie and spent 10 crores on Marketing.
I.e. Rs 50 crores for the movie for Distributer
Now the distributors sold the movie Satellite Right, Music Right for 15 crores i.e., the distributor got 15 crores from here.
After this, the distributors sent the movie to different theaters of the country, and Movie made a gross income of 100 crores from ticket calling, which is 28% GST.
The movie ticket already has a tax incentive, so its net income will come to 78 million, now if we get income of distributors from the ratio of 25:75, then 58.5 million which means that the distributor did buy the movie 40 million and the promotion Had spent 10 crores and earned 73.5 crores, meaning the distributor earned a profit of 23.5 crores.
Friends, similarly Film Industry’s Business Model works and Movie Producers earns money. I saw one place about it on the internet and I liked it so why do not you all be told about the bollywood business model and find out how movies producer earn?