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  • Category: Movies

    How does movie earn crores even before release?

    Wondered to know about the business of a movie before its release? Let us know from experts about the factors that influence the business of a movie on its pre-release.

    Bollywood movies and south movies are earning beyond 100 crores. Some movies earn few crores even before the release. What are the ways by which movie producer gets lots of money? Which are the factors that consider this earnings? Please give examples to get more insight into it.
  • Answers

    3 Answers found.
  • The three major contributors in getting money for a movie are Production Companies, Distributors, and Theatres. Along with these, there are other ways with which a film unit, especially producers make money.

    1. Production Companies
    The production companies will market the movie and also team up with distributors for the release of the movie. These companies sell distribution rights to distributors before the release of the movie. For example, Avatar was produced by Lightstorm Entertainment, Dune Entertainment, and Ingenious Media but distributed by 20th Century Fox.

    2. Distributors
    The distributors will tie up with theatres and the part of ticket sales are given to distributor by the theatre management. This tie-up is usually done in bidding.

    3. Ticket Sales
    Remember that first few days of movie release in India will have pricey tickets, well, this is another strategy to gain more income from the initial release itself. Most movies get their movie budget through first-day ticket sales.

    4. Merchandising
    Merchandising can differ from movie to movie. Some movies merchandise in the form of toys, t-shirts, gift boxes, cookies, and much more. This culture is more popular in foreign language movies and especially with animated, sci-fi, fantasy and epic historical movies. Remember the Walt Disney toys of mickey mouse is still available in the market. Selling these products will add an extra coin to their pockets.

    5. Novels, books and video games
    Though this trend is not so popular in India, it is also one of the methods that the movie makers practice to earn extra bucks. They publicize the movie in the form of a novel or a book. They also make video games of their movies.

    6. Sponsorship
    You see many brands in movies of various products such as consumer goods, automobiles, drinks, outlets etc. These vendors pay money to movie makers so that their product is viewed on big screen. This is a marketing tactic of these vendors and this tactic costs them, yes they need to pay for their product placement.

    7. Online streaming services and Television rights
    This is the final method (most of the cases) with which the movie producers make money. They take money from online streaming services like Netflix, Amazon Prime, Hot star etc to add films to their library. Similarly, they take money TV channels to broadcast their film.

    Apart from the above major methods, other smaller methods of earning money include tax incentives, selling the rights to broadcast movies in airlines, selling pricey popcorns and cooldrinks in movie theatres, third-party ticket sellers (BookMyShow, Just tickets) etc. All these methods are implied by producers and movie team to earn as much as possible.

    Thank You
    Dr. V. Shashikanth

  • These days the producers are selling the exhibition rights of the films to various distribution Organisations and they will collect money from them. In turn, these distributors sell the film to theatres where the movie will be available for the viewers to view the same. The collection in the theatre will go to the owner of the theatre and the distributor in a ratio pre-agreed. So the producer will get money before the movie is released.
    Another way of income before releasing is from the money received from the companies for advertising their products in the movies. For example, in a frame, the hero may tell a dialogue about coca cola and show a bottle of the same there. Towards the manufacturing company may give some money to the Producer. This will also be before the release of the movie also.
    After release, the movie broad coasting rights in TV and radio will be given to some channels by the producer that. is also an earning for the producer.
    There are many other ways where the producer may get small amounts but the major receiving will be by the above methods only.

    always confident

  • Earlier Indian movies' earning capacity depended on the production banner, the lead actor or the director. Excellent movies would be remembered on their sliver jubilee, golden jubilee and awards it won. One of the perfect examples for this is the Tamil movie Nayagan (1987) which found a place in Time Magazine's 100 best films 2005. Those days collections were movie goers locally within the home state and its neighbors.

    Now the trend has changed, one of the important factors that determines the success is the box office collection.Now the audience has a global reach and includes movie, paid cable and overseas release. Another added factors are the satellite rights, the endrosments that the movie and the actor get which also add on to the collection.

    Some of the movies which have had sepctular success are Dangal, PK, Bhaubali 1 & 2.

    1. Pre- launch media management. Whenever a movie is being put in place, even before the moive shoot is well in progress, the social media is well used by the director or the production house (actors look and style, digital image - Ranjinikanth in Kabaali). Small clippings or teasers released which get thousands of views on you-tube, the Kabaali teeaser is said to have around 10 million views in 3 days and a totl of 17.1 million views. This creates an interest and curiosity in the movie.

    2.Leaked Images, controversy or special training of the actor. Sometimes curiosity get better and better with sudden appearance of a still or a punch dialague, debate on the ending or even adverse controversy,(eg: why did Katappa kill Bhaubali, was the most widely circulated question before the movie release, we all know about the Padmavati movie controversy).Some movies with a catchy tune, will release the song audio/stills even before the movie is fully completed, this becomes the talk among the fans and media. All these helps to keep the movie alive in the minds of public.

    3.Movie promos, press meets and audio launch. Many movies have promo events with big names interacting with fans, audio launches where stars attend, merchandise given or releases ( T-shirts, posters, apps, mugs etc).

    4.Mega facts: Any good movie now sells on the word 'Mega" - mega budget, mega stars, mega sets, mega animation and mega world-wide launch.

    5.Non-Screen release. Apart from actual movie being screened in the theatres, the rights for satellite, TV, cable viewership is huge and here the movie makes money just before the actual screening in India.

    6.True entertainer value. This helps the movie immensely and gets good reviews in print, online , social media and by word or mouth.
    Dangal: Perfect dedicated actor - Amir Khan
    Bhaubali: Acclamined director - SS Rajamouli, Fantastic special effects, costumes
    Like this a good script, good performance in every department including costumes and locales help the movie to earn crores.

    7. Multi-lingual release & appeal. Conventionally, it would be rare for a movie to be released in many languages simultaneously but now a days movies are made in 3-4 popular languages and released so that the box office collection is boosted up. Eeega, a movie where the hero is a fly, again a Rajamouli movie wherein the tamil,telgu,kannada, Malayalam and Hindi versions helped the box office collection immensely. The Non-Indian fans now also contribute a to the movie collection, for instance Rajikanth movies had a good viewership in Japan, Dangal had done well in China

    8.Sequel. A box office hit often inspires a second movie which is more eagerly awaited by the fans and the global audience. For instance the Surya starrer Singham franchise has seen three parts, Bhaubali 2 after the beginning.

    So, the success recipe does depend on the basic ingredients of a good movie but also on the way the movie is 'sold' to the audience just before the actual tickets are sold.

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