How film industry earns profit?

Film industry has huge influence in present times and people always remain curious that how they earn profit and how they estimate and invest in film industry. Actually investing in film industry is just like investment in cryptocurrency because they are also not sure that wether their movie will be hit or flop audience will decide their fate.

Indian film industry is world's largest film industry because each year India produces 1500 to 2000 films which is big number. There are so many indian film industries but the most influential was Bollywood before COVID pandemic but after pandemic Bollywood movies decreased their popularity graph to twenty seven percent and now Telugu film industry is preceding with great margin.

Film division :

Making to screening of films can be divided into different parts :

Developing phase

Pre production

Production

Post production

Developing phase:

Developing phase has selection of story and plotting of story. It includes deals with writer etc.

Pre production:

During this time, one has to select which actor or actors will work in movie? Who would be their stylets and selecting crew members hiring cameraman , directors , staff , passing the permits about the places where shooting has to be done.

Production :

Production is the main time for shooting where every thing is ready and everyone whether he/she is actor , crew member, staff members are doing their work with proper concentration and doing their hundred percent to make a good movie. It includes their hard work of day and night. Due to this they follow very strict routine.

Post production:

In post production , editing of movie is carried out and after editing it gets ready for screening but story not ends here.

Producers and production companies :

In making a film, expenditures are not small those are so high sky touching. So single person could not handle all these expenses so these expenses are managed by production companies which come under huge risk because they are totally dependent upon film. But if only one person manage film expenses then he is known as producer.

Once film get completed after editing it is handed over to producer and it is upto producer what he wants to do with it.

Role of distributers :

In making a film super hit, hit or flop distributors play a major role. Producers handed over their film rights to distributors and on this stage producers adopt three ways :

One is royalty agreement in which distributor gives fixed money to producers and after film success they divide the profit in this way they hold risk.

In second way, producers take their money for producing the film from distributors and now it is totally risk on distributor.

In third way, producers give some fixed money to distributors means they hire distributors for their films and after success they get the whole profit.

Distributors are the main players in the film profit they hire sub distributors who go to cinemas of different areas and make deals with them. There are two types of cinemas one are single screen where they set deal with agreement of 25%of cinema hall. While multi screen cinema halls which are usually in malls have different agreement which changes weekly and that are 25% to cinema hall and rest to distributors this is only for first week and later on the share of cinema hall keep on increasing. The revenue which film makers earn by selling tickets of films is known as box office collection.

There is also GST tax over tickets of films. But there is no need to worry film makers sell their rights to OTT platforms and from their they earn handsome profit.

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