Unveling the Box Office Terminology: Gross, Nett and Share
Here is a breakdown of the Box Office terms “share,” “nett,” and “gross” in the context of box office collections in India, especially based on Tollywood collections. In simpler terms, “share” is the producer’s cut, “nett” is the cinema hall’s revenue before taxes and expenses, and “gross” is the total revenue generated from ticket sales.
Here’s an example to illustrate the difference between these terms:
Consider a film with a ticket price of ₹100. The distributor’s commission is 20%, and the cinema hall’s expenses are ₹10 per ticket.
- Gross collection per ticket: ₹100
- Nett collection per ticket: ₹100 – ₹10 = ₹90
- Share per ticket: ₹90 – (20% of ₹90) = ₹72
Therefore, for every ticket sold, the film producer receives ₹72, the cinema hall retains ₹18, and the distributor receives ₹10.
| Term | Definition |
|---|---|
| Share | The amount of money a film producer receives from the distributor after deducting the distributor’s commission. |
| Nett | The total amount of money generated from the sale of tickets at a cinema hall, before deducting taxes and other expenses. |
| Gross | The total amount of money generated from the sale of tickets at a cinema hall, including taxes and other expenses. |
Understanding these terms is crucial for analyzing the financial performance of a film. When you see a film’s box office collection reported as a gross figure, it’s important to remember that this is not the amount of money the producer walks away with. The share, which is typically around 40-50% of the gross, is a more accurate representation of the film’s profitability for the producers.
What is Box Office Collection Gross?
The Gross Collections of a movie released into a theater represents the total money made by the film every day after selling the tickets, it could be online or offiline medium.
What is Box Office Collection Nett?
The Box Office NET Collection of a movie represents the total money made by the film after selling the tickets excluding entertainment taxes laid by the Govt. In general Nett collection is the 85% of the total Gross collection, It means 100 Cr gross collection movie makes Rs.85 Cr Nett. It varies from one state to another state in India based on the negotiations with the Govt.
Some Govts encourgares regional and historical films by exemting taxes. Also, negotiate the taxes based on the discussions with the govt officials, by presenting them with the positive side of cinema to the society. Viz, Balakrishna’s ‘Gautamiputra Satakarni’ gets tax exemption from AP and Telangana for ‘historical’ content. Also Rudramadevi exempted from entertainment tax in Telangana for the same reason.
However, the tax on Gross collection in Indian states like AP and Telangana as follows.
Net = Gross – 12% Govt Taxes
What is the Box Office Collection Share?
The Box Office Collection Share of a movie represents the total money made by selling the tickets excluding entertainment taxes and as well as excluding theater rents, Electricity bill and maintenance. The distributor share generally varies from 55% to 75% of the total Net collection, it means a 100 Cr gross film makes a distributor share of minimum Rs.46 Cr and a maximum of Rs.63 Cr.
Share = Net – (Theater Rent/ Satellite Cube Rent)
Note: The % of distributor share varies from one film industry to another film industry based on the agreements. Bollywood generally follows 55% distributor share while Tollywood has up to 75% distributor share.
How is Distributor Share Calculated?
Usually it depends upon the agreement between the distributors and the theatre owners. So, there is no fixed formula for the calculation of the distributor share. But out of the total gross, 85% will be the Nett across all the states in India as of today.
