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On an Average, out of every 100 films released in India, only 5 to 10 films remain as the profitable venture for the producers. Another 5 to 10 movies will enter the safe zone. More than 50% recovery films will be around 15 to 25. Remaining 55 films mint less than half of their investment, making the film business a risky affair, where the success rate is very low.

However, despite knowing the fact that film business is a risky one, many filmmakers try their luck each year aiming for fame or thinking their films will be in that 5 to 10 % success rate ones.

Three majors terms used while reporting film Trade in India

Gross – When the Trade refers Gross while reporting the box office collections, it means the total amount the film accumulated including entertainment tax and theater rentals along with distributor share.

Gross = Entertainment Tax+Theater Rentals+Distributor share

Nett – When the Trade refers Nett while reporting the box office collections, it means the total amount the film accumulated excluding entertainment tax.

Nett= Theater Rentals+Distributor share

Share – When the Trade refers Share while reporting the box office collections, it means the total amount the film accumulated excluding the entertainment and Theater Rentals. This is the amount which the producer/distributor of the film gets on hand after deducting the expenses and tax.

Share = Distributor share

Note: – Theater rentals includes rent of the theater, digital broadcasting costs and other miscellaneous expenses.

 

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