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How does producer of a movie earn money when he releases a movie?


Date: 16 Oct 2011   Posted By: Paresh Gujarati     Group: Entertainment    Category: Movies   

How does producer of a movie earn money when he releases a movie? What are the ways from which producer of movie can accumulate funds he invested in movie actors, cameras and all other expenses? What are the limitations he face when release movie or sell movie right to any movie theater? How much money producer can expect from theater owner for particular movie? What rules need to be followed by both the parties?



Author: Meera Chandra    29 Oct 2011      Member Level: Gold     Points : 2    Voting Score: 2

Whenever a new movie is made, it is the producer who undertakes the complete expense of making the movie including paying the cast and crew, promotion expenses, shooting expenses etc. After the release of the movie, it earns revenue from theater collections, selling of distribution rights, selling of broadcasting rights, selling of DVDs and VCDs etc. If this revenue exceeds the expense, then the movie has made a profit. This profit goes to the producer. Thus the producer earns money from the movie. If there are more than one producers, they either share the profit equally, or share it according to the proportion of capital invested by each producer.

Author: Ramprasad    29 Oct 2011      Member Level: Diamond     Points : 3    Voting Score: 0

Hi,
A producer can earn money by selling the rights of the movies first to distributors and exhibitors. The distributor pays some huge amount according to the talk about the movie and handovers the rights of the movie. The the distributor sells the movie prints to theater owners. Producers also earns money by selling the VCD and presently DVD rights to some company and even producer makes money by selling music rights to audio companies. And satellite rights also gives an opportunity to make money for producer. If the movie gets hit talk some time prints of movie also increases this also allows producers to earn money.


Author: Vilas    30 Oct 2011      Member Level: Gold     Points : 2    Voting Score: 0

Take an example of recently release movie of Ra.One Producer of this movie earn money by selling its movie of Distributors which can distribute movie all over the world. Same song records of movie in case of castes, CD, DVD and digital. Branding is other way to earn movie from money like promoting technology, brand etc.

Author: Ganesh Kumar    31 Oct 2011      Member Level: Gold     Points : 4  (Rs 2)    Voting Score: 2

Firstly, As we know that any studio or individual investor decides to purchase rights to the film

After the film is completed, then the movie is sent to the studio.
Studio makes license agreement with a distributor company.
Distributor company decides how many copies or prints of the movie to make.
Then, the distributor company screening the movie to the prospective buyers representing the theaters.
Buyers negotiate with the distributor company on which movie they wish to lease and the terms of the lease agreement.
Then the prints are sent to the theaters before the opening day.
and then the theater shows the movie for specified number of days according to the busy state.
At the end of the engagement stage, the theater returns the print back to the distributor company and makes the payment as per the lease agreement.

That's how production of a movie is distributed among the theaters to earn the money



Author: Paresh Gujarati    31 Oct 2011      Member Level: Gold     Points : 1    Voting Score: 0

Hello Mr. Ganesh kumar. I am totally satisfied with the answer you gave. I was looking for this procedure how money are transferred from one person to person.

Author: Soujanya    06 Nov 2011      Member Level: Gold     Points : 0    Voting Score: 0

Hi Paresh, as per my knowledge before releasing a movie the producer will show the movie without any censor cuts to distributors. Now the distributors rate the movie and bid. These rates will depend on the actors, story in one word complete movie. Then the producer sells to them.

Author: Ganesh Kumar    06 Nov 2011      Member Level: Gold     Points : 1    Voting Score: 0

Yes Paresh. Distributors taking much risk here. So, if a movie gets high returns they are much benefited and if it is flop, they loose their profit and part of investment too.

Author: ranushree caitali    06 Nov 2011      Member Level: Silver     Points : 2  (Rs 1)    Voting Score: 2

Hello,

Your first question : "How does producer of a movie earn money when he releases a movie?"
Answer : A producer earns money from government, music companies, theatres, sponserers, distributors.

Your second question :"What are the ways from which producer of movie can accumulate funds he invested in movie actors, cameras and all other expenses?"
Answer : Before release of a movie producer goes through this particulars steps
1) Government : When a producer start with a project he first of all register his story. During this period it passes through a governmental process where government signs an agreement with the licensed producer to pay a subsidiary amount for giving public a fruitful entertainment. He/she gets a return back money.
2) Music companies : After registration of a story producer sells his music tracks and composition to a particular company. He/she gets a return back money.
3) Sponserers : Here producer deals with the sponserers to sponser a particular thing like costumes, loadging service, fooding and many other similarities.
4) Distributors : A producer here deals in an agreement with the distributor for royalty income.
5) Theatres : The maximum no of theatres booked at a time thrughout India gives a producer a great business.

Your third question : "What are the limitations he face when release movie or sell movie right to any movie theater?"
Answer : Basically owner of a movie theatre don't buy the movie they give their theatres in rent to the producers as per their booking for the film. Owners of the theatres collect his amount from the producer before release of the movie.

Your fourth question : "How much money producer can expect from theater owner for particular movie?"
Answer : Theatre owner never pays to producer but give the theatre in rent to the producer, hence a producer gets all the collection done through tickets.

Your fifth question : "What rules need to be followed by both the parties?"
Answer : Agreement of tenanacy between Theatre owner and Producer.


Author: rana prathap    14 Nov 2011      Member Level: Bronze     Points : 2    Voting Score: 0

after complition of a movie' producer sells his film for sattelite rights to tv channels gets some amount. he sells the film to buyyers of different areas by showing clips of the movie or premier show.

Author: Amandeep Singh Nagpal    26 Jan 2012      Member Level: Bronze     Points : 1    Voting Score: 0

Well , it is not that much easy for the producer to generate money for his film . So usually producer gets funds from people in his circles . The better the film does in theaters , the more revenue gets generated by the producers . Ultimately profit gets accumulated for the Producer .

Author: Harish Prasad Bhatt    27 Jan 2012      Member Level: Bronze     Points : 1    Voting Score: 0

hiii. the producer is the person who sets his money on the film and make it good that it will be publicly profitable to him.So to get their profit they usually make promos very effective to get a blockbuster hit..
Thank you


Author: Saji Ganesh    27 Jan 2012      Member Level: Diamond     Points : 2    Voting Score: 2

Things have become quite easy for the producers today. Once they are ready with the story and dates of a selling star, they just have to announce the project and there are distributors ready to purchase the rights of the movie. Thereafter the entire expenses are borne by the distributors. Other than this there is income form selling of audio rights, video rights, overseas rights and satellite rights. Then there is the chance of the movie being remade into other languages. If the collection of the movie crosses a stipulated level, the producer again stands to gain. Important thing to remember is that only a person or company having adequate knowledge about the nuances of film making and the intricacies of the industry can become successful in the field.

Author: Rachna singh    20 Feb 2012      Member Level: Silver     Points : 1    Voting Score: 0

When the movie is released the producer of the movie sell this movie to the theaters at the higher price than the movie is made .then he earn money by making the cd and dvd of his movie and sell it and earn a lot of money and he is ready to make a new movie.

Author: shashi    29 Feb 2012      Member Level: Silver     Points : 2    Voting Score: 0

when any movie is complete to launch in market this allow sensor board. when when movie launch then all the owner of theater like cinema hall, big cinema , mall pay heavy amount for the disk of that movie. so that more people when the movie scope a good effect in market then the owner of all the cinema hall pay commission to the producer and one real fact is also now day's the movie producer earn money from short advertisement inside the movie. i think you see this aid when movie start.

Author: Rahul    24 Mar 2012      Member Level: Silver     Points : 2    Voting Score: 0

Producer are the people who supports the film in making financially .It takes about 3 years aproximately to make the film and the whole expenditure is done by the producer .At last when the film is released the earnings made by the film is shared by the producers according to the investment done and the fee of actor and actress is also paid

Author: [Anonymous]    25 Mar 2012      Member Level: Silver     Points : 3    Voting Score: 0

it is the producer who undertakes the complete expense of making the movie including paying the cast and crew, promotion expenses, shooting expenses etc. After the release of the movie, it earns revenue from theater collections, selling of distribution rights, selling of broadcasting rights, selling of DVDs and VCDs etc. If this revenue exceeds the expense, then the movie has made a profit. This profit goes to the producer. Thus the producer earns money from the movie. If there are more than one producers, they either share the profit equally, or share it according to the proportion of capital Once they are ready with the story and dates of a selling star, they just have to announce the project and there are distributors ready to purchase the rights of the movie. Thereafter the entire expenses are borne by the distributors. Other than this there is income form selling of audio rights, video rights, overseas rights and satellite rights. Then there is the chance of the movie being remade into other languages. If the collection of the movie crosses a stipulated level, the producer again stands to gain. Important thing to remember is that only a person or company having adequate knowledge about the nuances of film making and the intricacies of the industry can become successful in the field.

Author: B RAVINDER    11 Apr 2012      Member Level: Bronze     Points : 1    Voting Score: 0

Hi
A producer can earn money from the buyers.
He has all rights on the film completely.
Whenever any person want to buy rights on that film he has to pay money to producer.
Ad-agency companies also must pay money when they use that film in their commercial ads.


Author: Manoj Gathe -> MPG    24 Apr 2012      Member Level: Gold     Points : 2  (Rs 1)    Voting Score: 0

The producer is always earning the highest amount of money through government enterprises, music companies, audio & videos sellers etc.
For this after the completion of film, producer announces the bid of film to various purchasers like TV satellite launchers, big organization, some high profile individuals.
Thus the marketing is going on right from the pre-end session of completion of film.


Author: sailakshmi    26 Apr 2012      Member Level: Bronze     Points : 0    Voting Score: 0

The producer always earns money by selling it to distributors of evry district....and also by audio sellers..




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