HOW MOVIES EARN MONEY
It is a long process of a movie to earn money. In a movie, there are many costars, hero, heroin and many co-workers. To earn a profit first producer have to calculate the revenue of a movie. A movie is made in the city or outside the city. If a movie is made outside the city then various expansion such as hotel, food, tickets and many more have to be calculated in a budget. Before producing a movie a producer has to decide the budget of the movie and accordingly decide the actors of that movie. Every actor has different paid work. When a movie is produced every one along with actors takes their pay before release.
How a movie earns its revenue?
Before releasing the movie, a movie earns its profit on a paper. For example, by selling the movie itself, songs of the movie, the dialogue of the movie to show in aeroplanes, DJs, Tv channels (Example: Tv channel show movie by 'World Television Premiere by Sony Entertainment')or other buyers.
How the producer earns its profit from a movie?
There are two types of producer. One is the producer itself of a movie who is only investing money in a movie and other is that who is investing in a movie as well as playing a role in a movie. If a producer is only investing money in a movie then to earn profit for itself he sells his movie to a distributor and earns his profit. Now, distributer release the movie all over theatres by supplying movie to the sub-distributors. If a producer is both (movies like Bajrangi Bhaijaan(Salman Khan) or Dangal(Amir Khan)) then he earns his profit more easily. A producer also is a distributor of a movie then he promotes his movie by sending his actors to famous channels or shows or hangs banners or promotes his movie by releasing songs and many more.
Process of earning money via theatre
When a movie is with a distributor or a producer, the distributor distributes his movie to other sub-distributor which are different for different cities and tide up with theater of their locality. Theaters earn money, if a theater is small then 25/75 or 35/75 ratio earns by a theater and a distributer and if a theater is in a mall or having a big screen then in a first week there is a ratio of 50/50 then in a second-week ratio is 60/40 and after that ratio is 30/70 of theater and distributor.
Example of some high earning movies in India
The producer of a movie and an actor of a movie was Salman Khan itself. The movie made a budget of 90 crores. In India, the gross profit was of rupees 445 crores and 969 crores in Boxoffice.
The producer of a movie and an actor was Amir Khan itself. The movie made a budget of 70 crores. In India, the gross profit was of rupees 580 crores and 2100 crores in Boxoffice.