Regularly we will heard the words gross, net, share, SG, MG, Hires, etc in movies collections tracking. here we are providing a detailed information about these tracking terms to our readers.
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GROSS ::
Gross means a total collection of the movie after deducting the maintenance charges of sold tickets. lets take an example of some XYZ theater, which is having a capacity of
Rs 100/- :- 300 seats
Rs 70/- :- 500 seats
Rs 30/- :- 200 seats
if the theater is houseful means, the show collection will be is Rs 71000/-
normally the maintenance charge will be Rs 1/- to Rs 3/-. lets assume that its Rs 2/- per seat in XYZ theater. So, for 1000 seats the maintenance charges would be Rs 2000/-.
So, in this case total Gross for one show is Rs 69000/-
Note: Maintenance Charges (MC) will be deducted only on the no.of tickets sold. but not on the total seating capacity.
in simple terms, GROSS = Total Collection - MC
NET ::
To obtain Net, 4 components have to be deducted from the gross. lets take a look into these components
1. show tax + Association fund - This is Rs.12 per show irrespective of theater type.
2. Representative beta - This is Rs 150/- per day
3. INR - 1% of total net of a film in a theater is considered as INR.
4. Tax - 15% (It differs from theater to theater and center to center)
So, for one week (suppose the theater is houseful for all 28 shows) Net components are
Show tax + AF - Rs 364/-
Representative beta - Rs 1050/-
INR - Rs 19320/-
Tax @15% - Rs 289800/-
Total deductions - Rs 226260/- for one week
So, Net is (69000*28) - 310534 = 16,21,466/- for one week
in simple terms NET = GROSS - Taxes
SHARE ::
Share will be obtained after deducting Theater Rent from Net collection.
So, Share is 16,21,466 - 4,50,000 (weekly rent of theater) = Rs 11,71,466/-
So, the figures for a film in some XYZ Theater with 28 houseful shows will be like
Total Amount collected from audience - Rs 19,88,000/-
Gross - Rs 19,32,000/-
Net - Rs 16,21,466/-
Share - Rs 11,71,466/-
SG & MG & FHs ::
SG - Share Guarantee. in this case, the exhibitor will get the movie rights for less price compared to outright business. any how, if the movie has collected below SG price then, exhibitor has to bare the loss. in case of profit will get 20% to 30% of profit and remaining 80% to 70% will goes to distributor. normally theater owners will do SG for theater feeding
MG - Minimum Guarantee. in this case, the exhibitor and distributor will share the profits equally. but, in case of loss exhibitor has to bare that loss. in general, new people will do MG to get some idea of market.
in both of above cases both risk and benefits are less.
FHs - Fixed Hires. in this case, distributor has nothing to do. whether it may be a loss or profit, only exhibitor will bare it.
in case of FHs both risk and benefits are more.
NET FREE ::
Net free is a termination from exhibitor/distributor from the agreement with Theater owner. After giving net free, exhibitor will not pay any rent to theater. so, its theater management own decision whether to continue the movie or to bring some new film.