It is generally said-
“All’s well that ends well”
and it holds just right the entire team of Padmaavat. To our surprise the movie which was in doubt of hitting even a single cinema hall or multiplex, following huge outrage has somehow managed to recover all the investments made by co-producer Viacom18 Motion Pictures.
The movie ‘Padmaavat’ whose named was changed from ‘Padmaavati’ was made at a cost of Rs 180 crore including P&A (prints and advertising) and distribution expenses. The movie has notched up Rs 307.05 crore in box-office collections as per the source Bollywood Hungama. However, since the film is still up and running, the figures may increase considerably.
The figure- Rs 307 crore- is not as huge as it seems if you talk about profit of the co-producer. Only about half of this returns will go to the producer’s, as per the estimates. From a filmmaker’s end, there’s often circumstantial costing cuts which reduces the profit margin.
Tax Cuts
The entertainment tax and service charges are applicable on every movie ticket in India, which is deducted from the gross movie collections. After the implementation of GST, there is a uniformity in taxes which is levied at- 18% for tickets priced under Rs 100 and 28% for above that.
“An average of 22-24% of the ticket price goes away as GST pan India,” said film distributor and exhibitor Akshaye Rathi. “Then there is the service charge which nationwide, on an average, is Rs4-6 per ticket. That is a portion retained specifically by the exhibitor to spend on maintenance and extension of the cinema. So that is cut out,” he added.
Distributor-Exhibitor Share
In the first week of movie run, the share is split between the two equally, after which it is 3:2 for the second week. In the third week it changes to 7:3 in the third week. A part of distributor’s earnings goes to producers depending upon the negotiations.
Finally, for any film, the producers share is roughly between 45-50% of the box-office’s collection.
The movie ‘Padmaavat’ has made has also made substantial amount of funding from ancillary streams- Rs 50 crore from satellite tv rights, around Rs 15 crore from music and over rs 10 crore from digital rights sale.
The ancillary streams are generally the main modes of deriving profits from any big film.