Posted: 18 August 2013 at 10:36pm | IP Logged
Note: This article was first published way back in
Indian Box office verdicts are usually confusing. A
few movies are called Blockbusters by the media
even though they are just Semi-hit to Hit. A few
movies which go into overflow are termed Flops.
Also many of you might have wondered on
what basis a verdict is given out on a movie.
How does the trade define a movie as a Hit, Flop,
Superhit, Blockbuster. Hopefully this article will
clear all your doubts.
Gross collections – Total collections at the box
Nett Gross (Raw collections) – Is the total gross
minus entertainment tax which is usually around
30%. When the government decides to waive off
the taxes of a certain film, it goes tax-free. In
which case, no entertainment taxes will be paid
by the producers / distributors.
Circuit: The area for which a distributor buys the
distribution rights for a film for a period of
(generally) 5 or 7 or 10 years.
Ratio: The price for which a film is sold for
Bombay circuit. Prices for all other circuits are
determined as a fixed percentage of the ratio. For
example, Delhi-U.P. is usually 80 to 85% of the
ratio. But in the case of action films, which have a
bigger market in North India, Delhi-U.P. may be
sold for 100% of the ratio.
Flop: If a film cant even cover its investment by
the distributor, it is termed a flop.
Average: If a film manages to simply recover its
cost, it is an average fare.
Commission Earner: When a film recovers the
investment and, over and above that, gets in
revenues of 25% more, it is termed a
commission earner. Thus, if the distributor?s total
investment in a film is Rs. 2 crore, and it does a
business of Rs. 2.50 crore, it is termed a
commission earner. 25% of Rs. 2 crore is Rs. 50
lakh which is the amount of commission which
belongs to the distributor to cover his expenses
of releasing the film.
Overflow: When a film crosses the commission
mark, the revenues thereafter are to be shared
between the producer and distributor. The
producer gets a share in the overflow business,
generally fifty-fifty. Such sharing makes the film
an overflow film. Overflow films can be further
categorised as under, depending on the quantum
Semi-Hit: A film which does a business that is
double the distributor's investment in it, is termed
a semi-hit. In such a case, the producer gets
handsome overflow from the distributor.
Hit: If a film more than doubles its investment in
the distributor's hands, it is deemed to be a hit.
Super-Hit: If the returns on a film are much
more than double the investment, it is termed a
Blockbuster: Returns are almost triple the
ALL TIME BLOCKBUSTER: When returns are
more than triple the investment i.e more than