Movie Total Collection Amount Distributors and Producers Get:- Welcome to all in our brand new article about the movie collection. Today we are about share how much a film producers earn from a movie that has collected NPR Rs. 10 Lakhs lifetime gross amount.
You all know that in the recent past time, Nepali movies are doing a good collection. Movies are doing crores collection that we can hear almost every week. Nepalese movies are doing a very good collection in the domestic and overseas markets. But movies that are hit in 2022 and 2023 can be counted on fingers.
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| How Much Money Producer and Distributors earn |
Let's not always be audience and watch movie visiting the cinema hall and enjoy latest movie. Sometime we need to know the inside story of earning of producers who do their hard work to entertain the audience like us. We want to ask you should we support producer or not? Also, How much do producers earn when a movies in Nepal celebrates 51 days?
Table of Content (toc)
After listening to the collection of movies many new producers are attracted to invest in the production of new movies. If you are new to the film industry and planning to invest your hard work money in the production of a new movie then you should read this article in detail.
Who is Movie Producer?
Movie Producer can be a person or company that invest on the production of movie. They bear all the production, promotion and advertisement cost until full movie shot. Producers are the risk taker and who invest movie after looking at the script of the movie and casts and crews member. Sometime producers even look after the brand value of the movie name before investing. Producer bear the budget of the movie production.
Who is Distributors?
Distributor is a person or company that buy movie to distribute among the cinema hall. They buy distribution right before or after the movie release by looking at the lead actors and actress and the team members working to make a movie. There is held contract between Distributor and Producer how much percentage of the movie to buy.
Who is Exhibitor?
The owner of theater or cinema hall are known as exhibitor. In Nepal exhibitor are One Cinema, Kumari Cinemas, Big Movies, Bishwojyoti movies, etc. They contract with the distributor of the movie to show in their cinema hall and pay certain percentage or amount to the distributor or sometime the distributor can be also producer of the movie.
How much Tax should be paid to Government in Total Collection?
Any movies after the release date start to earn from the first day a certain amount is collected. In this total collection done by the movie, 13 percent vat amount and 5 percent tax to the local government becomes a total of 18 per cent to be paid to the government. The amount of collection remained after paying tax for both the distributor and movie producer to get 50/50 percent after tax.
Tax for Nepali movie
- Suppose Gross Collection: 1 Crore
- VAT% : 13%
- Entertainment Tax: 5%
- Total: 18% Tax
- Percent left: 100-18 = 82%
Now this 82% become 100% is distributed 50%, 50% among producers and Hall Operator
Here come another twist if a producer distribute a movie without advance then only 5% is deducted as commission from producer income. But if, a producer take advance and distribute the movie then 15% commission should be paid to the distributor. The final remaining amount is for producer after all above deduction. Now produce have 45% or 35% remaining
For Producer Company,
If a movie earn more than expectation that is super hit or blockbuster then it come to company where producer company should pay 25% profit tax to the government on yearly basis every fiscal year. It depend upon how many movies are produced.
Tax For Foreign Movies
Total Tax: 18% + 15% = 33%
Let's take an example of a movie with a lifetime collection of Rs. 20 crores gross amount at the box office. The remaining Rs. 16.4 Crores is distributed among the film producer and distributors. Let's assume that this movie successfully celebrated 51 days to becoming a blockbuster.
If a movie collected Rs. 10 crores in the 1st and 2nd week then it has to pay 18 percent of tax including 13 percent vat and 5 percent tax to the government then in this situation distributors get Rs. 4 Crores 10 Lakhs and Producers of the movie get Rs. 4 Crores 10 Lakhs. This shows both of them distribute 50-50 percent.
Note: The above amount is collected by the movie within the in 51 days of the movie release date before it becomes was different scenario.
In short, 51 days Collection Distribution (Movie Profit Calculation)
- Total Collection = 10 Crores
- Vat % to be paid = 13 percent
- Tax % = 5 Percent
- Total Tax = 18 percent
- Remaining Total Collection = Rs. 8 Crores 20 Lakhs
- Percent Distribution = 50 /50 Percent
- Producer get = Rs. 4 Crores 10 Lakhs
- Distributors get = Rs. 4 Crores 10 Lakhs
History of amount distributed after 2nd Week's Collection of the Movie
Now, in the 3rd week, the scenario of the share percentage between distributors changed drastically. In the collection after 2nd-week distributors are on the top. After 3rd-week the producer gets only 35 percent of the total collection flat. But this could decrease because some of the commission amounts are added to the distributor by the film producer to make them happy. This could be 5 percent to 15 percent share distributed to movie distributors.
If a movie earns Rs. 10 Crores at the box office in Nepal then more than Rs. 6 Crores should be paid to distributors in total and remains only Rs. 4 Crores with film producers.
It is very hard for movie producers to survive in the Nepal film industry because of the unjustifiable distribution of amounts among producers and movie distributors.
In short, 3rd Week to lifetime Collection Distribution
- 3rd Week onward Collection = 10 Crores
- Vat % to be paid = 13 percent
- Tax % = 5 Percent
- Total Tax = 18 percent
- Remaining Total Collection = Rs. 8 Crores 20 Lakhs
- Producer = 35 percent
- Distributors = 65 Percent plus 5 to 15 percent extra commission
- Producer get 3rd Week onward = Rs. 3 Crores Crores
- Distributors get in 1st & 2nd Week = Rs. 7 Crores
Movie Profit Calculation With Example
For Example, Kabaddi 4 collected more than Rs. 22 Crores and 83 Lakhs in 51 days. In this case, about 40 percent is given to the producers of the movie and 60 percent is distributed among the movie distributors. It becomes the amount received by the producer is Rs. 9 Crores 13 Lakhs approximate and the distributors get Rs. 13 Crores 70 Lakhs approximate.
The budget of the movie is more than 3 Crores which shows the producer is in profit of amount of Rs. 6 Crore 13 Lakhs.
Conclusion
The above Calculation in this article shows that the producers of the movie are always not in the profit even if a movie is a hit at the box office because the production amount should be covered by the movie. If you like this article related Nepali movie collection
FAQ
Q1. how to calculate movie profit?
Ans: Movie profit can be calculated after all the expenses deducted and tax paid to government and paid to the distributors in specified percentage and the remaining will be given to the producers.
Q2. how do films make money?
Ans: Films make money by releasing in the cinema hall, ott release and selling in different digital platform like YouTube, Netflix, Cinemaghar, etc.
Q3. how do producers make money from movies
Ans: Producers are the owner of the movie so they contract with different distributors and make money. They also release movie in the digital platform to make money.
Read More:
Producers and distributors earn varying amounts of money depending on the scale and success of the project or product they are involved with. The earnings can be influenced by factors such as the distribution channels, market demand, and the overall popularity of the content. For example, in the entertainment industry, producers may earn significant sums if their film or series performs well, while distributors often take a share of the profits based on the terms of their contracts. It is possible that with changing market dynamics, new opportunities for increased earnings could arise for both producers and distributors. Staying updated with trends could be helpful, and web str might provide insights into emerging revenue models or financial forecasts. This could offer a glimpse of potential earnings and changes in the industry in the near future.
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