When a film does 100 crore business then usually it is said that the producers get all the money. Filmmaker Rajkumar Hirani who is known for the 100 crore club films says that it is not that profitable and the producer gets very little amount of money. He further adds by saying that its not that profitable to make films and its just a misconception. Rajkumar Hirani has given some of the biggest hits like 3 Idiots in the year 2009 and PK in the year 2014 to name a few.
PK and 3 Idiots were the higgest grossing films in the history of Indian box-office and Rajkumar Hirani now recently talked about the overall economics of the box-office. He said, “When a film does 100 crore ticket sales, the producer gets about 25 crore. Thirty five percent of it goes to the government as entertainment tax, in some states it’s slightly lesser, but on an average it is 35%. Out of the remaining 65 crore, the multiplexes take 50% in the first week, 60% in the second week and 70% in the third week. That’s the reason every producer wants that their film should make good money in the first week itself, because from the third week onwards, the multiplex makes more money than the producer.”
Adding to the same he said, “Then there is distribution fee and advertising fee. Every ad that appears in newspapers and hoardings cost about 10-15%. So effectively, when you cull that out, only 25% is coming to the producer which is his production cost of making the film.” And now a days a lot of money is spent on promotion and marketing techniques and talking about the same Rajkumar Hirani says, “If someone makes a film in say 5-6 crores, you would need another 5-6 crores for marketing, so yes, the profit in cinema today is very little because the cost of production and marketing is very high
Apr 21, 2014 0
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