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Interesting Facts: Indian Movie Budgets and Profits

Are you ever curious about the Indian movie budgets and profits? Whenever a new movie is released, we line up for tickets. Somewhere 100 rupees, somewhere 400 rupees to buy a ticket and watch the movie.

Every Friday, a Bollywood film is released in India. Why Friday? Because then comes Saturday and Sunday, which is called a public holiday. And for that, the theater is crowded with spectators.

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Movie budgets and profits

Have you ever wondered why different theaters have different prices despite being the same film? Again, how does the money that we pay for the tickets reach the film owner?

The topic of my post today is a film or movie. What are the budgets for a successful movie, who spends that money, how does the movie profit? Let’s find out …

Where is the Money Spent While Making the Film?

Suppose you make a film that requires money. Where will you get this money? For that, you have to find a film producer who will invest in your film.

Producers are investors, just as investors are in business. The producer invests in the film to start a film. This costs the producer a lot of money, such as-

  • Story:- The first thing you need is a movie story. A dialog will be written in the story and then the actors of the film will be decided.
  • Actors:- Looking at the story will be selected, which actor is suitable for this story. Different actors have different demands, such as Salman Khan (60 crores), Amir Khan (50 crores), Akshay Kumar(40 crores).
  • Location:- Where will the film be shot? Outside India? Then everyone’s travel cost, hotel cost is much more.
  • Others:- There are other costs involved, such as cameraman, graphic designer, makeup man, etc.

How to Film Distribution?

Invested in making a movie and a movie was made, it was seen that the total budgets of the movie were 100 crores. This is how the money will be raised from the market in order to make profits.

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First, the picture has to be distributed in the market, which is done in different steps. And if there is no distribution, there is no profit, in addition, huge loss.

Film Distributor

The producer made the movie at a cost of 100 crores, loaded it on a hard disk. Now launching this movie, you have to show this movie somewhere, then the money will come.

Many times the producer and the distributor are one. In that case, he knows how to release the movie.

Movie distributors

But when the producer is new, he does not know how to release the movie. He then sold this 100 crore movie to a distributor.

Suppose the producer sells a 100 crore movie for 150 crores. The movie was not released but the producer took 150 crores.

Now the budgets for that film are 150 crores. The producer went out with 150 crores and the movie was with the distributor. Distributors will make profits by selling this movie at a higher price.

Distributor’s Movie Budgets and Profits

This time the distributor will budget for movie marketing. It takes 15 to 20 crores for movie marketing. Because he has a movie, who knows? Everyone will see only if they have to do publishing.

This money will be spent on putting up posters, running ads on social platforms, doing promotional programs on TV. Through which the movie will be released, when it will be available, and where it will be seen, all these are informed.

You know, movies are released in theaters and that’s where the money comes from. In fact, distributors make a profit before the movie is released in theaters.

  • How?
    1. Sells any dialogue or song of the film by making a collar tune.
    2. The film is sold for the first time on TV channels, so the channel promotes World television premiere.
    3. Social networks, such as Facebook and YouTube, also sell movie copyrights. Now you understand how a distributor makes a profit before a film is released.
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Who is this distributor? When the film starts, the intro is shown YASH RAJ FILM, DHARMA PRODUCTIONS, EROS ENTERTAINMENT, FOX STAR STUDIO. These are the distributors who distribute the film.

Movie Sub-distributor

The distributor goes to the sub-distributor to release the movie. There are many types of sub-distributors, such as the Mumbai sub-distributor, Delhi sub-distributor.

The sub-distributor decides on different theaters, in which theater the new film will be shown. The sub-distributor, the local theater owner keeps the mapping.

The owner of this local theater is called Exhibitor. They enter into an agreement with the sub-distributor, in which the percentage of profit is shared.

Profits From Film Theater

There are two types of theater, single-screen theater, and multiplexor mall theater. The share percentages of the two theaters are not equal.

Single Screen Theater:- The screen of this theater is one or smaller theater. The percentage of income from these theater tickets is as follows:

THEATER (%)DISTRIBUTOR (%)
or2575
or3070
profits ratio

Multiplex Theater:- Different in the case of multiplexes or mall theaters. The percentage ratio for this theater varies by week. As follows

WEEKTHEATER (%)DISTRIBUTOR (%)
1st5050
2nd6040
3rd7030
profits ratio

At the theater we buy tickets, and some percentage of it is kept by the theater owner and some percentage is received by the distributor. In this way, the money reaches the producer through the distributor.

And if the producer has already sold the movie to the distributor. Then the total budgets will be distributed by the distributors and the profits will go to the distributors.

You may not understand what I said. Total explained the matter with an example you can understand.

Example of Movie budgets and profits

BAJRANGI BHAIJAAN

Bajrangi bhaijaan

You must have heard or seen the name of BAJRANGI BHAIJAAN FILM. The budget for this film was 90 crores.

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The producer and actors of this film are the same people, Salman Khan, and Kabir Khan. For this, they have saved Rs 50 to 60 crore.

Do you know how much money this film made? You would be surprised to know, Bajrangi bhaijaan collected 400 crores only from India.

The film grossed 970 crores in the total world. The film, made with just 90 crores, sold for Rs 970 crore. The total profit of the producer is due to the fact that the producer and the actor are the same.

DANGAL

Dangal

The same goes for DANGAL FILM, the producer and the actor are the same person. The producer or actor is Aamir Khan and his wife Kiran Rao.

It cost Rs 70 crore to make this film. Dangal film sold for Rs 580 crore in India alone.

And the total revenue in the world was 2200 crore rupees. Understandably, the film with a budget of Rs 70 crore made a profit of Rs 2,200 crore. And Aamir Khan and his wife Kiran Rao get full profits.

I hope I have been able to clarify how much budget a film has or how much it earns. Now, in most cases, the actor works as a producer, earning more profit on a lower budget. The amount of income in a flop film is unimaginable.

Video on Movie Budgets and Profits

Conclusion

Comment below to know the details of any such interesting topic. I will write a post about it soon and give it as a gift. If you don’t have any basic idea about share market, click here. If you like the post, please like and share.

P. Mahata ( Ganga Sagar, W.B. )
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