How movies make money in 2019 | Money making model of Bollywood movies | Sidtalk.

How Hollywood or Bollywood movies make money in 2019 . Business model of Movies production. Money making model of Bollywood movies .Case st...

How Hollywood or Bollywood movies make money in 2019. Business model of Movies production. Money making model of Bollywood movies .Case study of film industry. Sidtalk.
Movies collection

Different Roles for Making of movies

Now a day numbers of movies release in India and the world. Movies industry is most profitable business in real world
As there is more risk also. First of all let's know how Movies is made and in which parts money need to pay for making of movies.

Director 

 For making of movies producer play a most significant role. Producer is a person who invest his money on movies budget. A movie required story script, according to script startcast are arranged i.e who will be hero ,heroine and other main characters. Producer has to give money to all startcast as well as story writer. Now script is ready and startcast are selected , now the matter comes in which places shooting should be performed. Producer has to spend money on different location where film shooting is performed. After shooting is performed film editing process start in this whole film recording will be edited according to film script and people demand.
Role of producer in movies 

  Now, film is ready in a small harddisk. Now producer has to take decision whether this movie has to sell directly to distributer or to Collab with them. If producer sell that movie to distributer ,then it is total responsibility of distributer to make a profit with that movies.


Let us know about distributor.

Movies distributer stidios

Distributor used to distribute the movies copy to different location i.e cinema hall, multiplexer,mall,etc . Some name of big distributor are Yash Raj, Dharma production, fox star, etc.
Distributor has to make a branding for that movies. i.e to run adds on t.v. ,promotions, banners,etc.



  Distributor are divided into sub-distributor according to different region these sub-distributor have a connection to cinema hall, multiplexer and malls in which is projected. In cinema hall margin is 30:70  30% goes to cinema hall while 70% to distributor. But this ratio is not same in multiplexer in multiplexer first week commission is 50:50 while it is gradually decreased from distributer's side. It's depend on times 2nd week it become 60:40 .
Thus distributer's makes money by buying movies from producer. if movies become  hits then they will be in profit while they has to face loss.

Copyright Earning.


Not only through distribution of movies make money but also through their copyright content. Generally a single movies contain 5-6 song these song comes under copyright policy. Many telecom Company use callertune for a particular song  this company has to pay to movies producer or distributer or has to own their copyrights . maximum profit is under satellites copyright . i.e. on which channel your movies is telecast for first time it is know as World Television Premiere (WTP).these right are to costly from these rights movies make enough moneys.


Some examples of Highest grossing movies.
1 Dangal
Budget 70 crores collection 2024-2100 crores.
2 Bahubali
Budget 250 crores collection 1810

 take an example.
Suppose Hindi Medium movie is made from the expense of 20 crores.
I am the producer and you are a distributor.
I sold it to you in 40 crores.
Here I made a profit of 20 crores.
Then, you spent 10 crores on promotion, marketing etc.
Overall you have spent 50 crores.
You obtained 15 crores from satellite right etc.
After this, you sent a movie to sub-distributors and they sent them to theatre owners.
Let's say movie Hindi Medium earned 100 crores.
After paying G. S. T :- 100 * 28/128 = 22 crore.
78 crore is left. They will divide it in 25:75
You got paid - 78 *75 / 100 = 58.5 Crore.
Cinema owner - 78 - 58.5 = 19.5 Crore.
Overall, you spent 40 +10 = 50 crore. And got 15 crores from selling to satellite right. And 23.5 crore total profit.
Then it is said to be Hit movie.

In reality, Hindi medium budget was 23 crore and box office earning is 300 crore. Now you can calculate :)
Movie industry is most profitable business therefore many hero's starts their own production house.
So , This movies cycles work .
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You can read more interesting article on this website .
Thank you ♥️

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