Founder Digitalu | Posted on | Entertainment
How Bollywood Movies EARN or Make MONEY ? | Indian Film Industry Business Model & Profit Explained
The level of bollywood movies collection on the box office has increased over the past few years. People are spending more on entertainment, and out days than a decade ago. So what has improved over a decade. The following are the reasons that people are spending more on entertainment and luxury:
1. The income of the people has risen over the last decade and now people are earning more.
2. The spending habits of the people have improved, people are spending more on consumption, comforts and entertainment. This can be seen from the fact that many world economists considered India's growth to be consumption driven.
3. If you see over the last few years when gst was introduced the tax rates has reduced significantly. It has in a way provided incentives to the people to consume more with the same income.
So now coming to your question, as to how bollywood movies earn. The foremost important thing that needs to be mentioned is that it is not the actors, directors who earn. It is always the producers and the production houses who earn. The whole money involved in making a film is of a producer or a production house.
1. Films earn majorly from the box office ticket sales. Revenue from the ticket sale is the highest for a film.
2. A producer is considered to be the owner of the film and all the intellectual property related to the films ie copyrights of the songs, music, title track, etc are all with the producers. And therefore no one can use these intellectually protected property without the permission of the owner and without paying royalty.
3. The international release of the film is also a source of revenue for the producer.
Sometimes what happen is a film earns more from the royalty and premiums without even being released in the market. This is what happened with Linga. Where the craze of the superstar Rajni Kant is sky high.
So broadly these are the major sources of revenue for a film. Apart from it, licensing fees to broadcast the films on various platforms is also charged and added to the revenue of the film.
1. The income of the people has risen over the last decade and now people are earning more.
2. The spending habits of the people have improved, people are spending more on consumption, comforts and entertainment. This can be seen from the fact that many world economists considered India's growth to be consumption driven.
3. If you see over the last few years when gst was introduced the tax rates has reduced significantly. It has in a way provided incentives to the people to consume more with the same income.
So now coming to your question, as to how bollywood movies earn. The foremost important thing that needs to be mentioned is that it is not the actors, directors who earn. It is always the producers and the production houses who earn. The whole money involved in making a film is of a producer or a production house.
1. Films earn majorly from the box office ticket sales. Revenue from the ticket sale is the highest for a film.
2. A producer is considered to be the owner of the film and all the intellectual property related to the films ie copyrights of the songs, music, title track, etc are all with the producers. And therefore no one can use these intellectually protected property without the permission of the owner and without paying royalty.
3. The international release of the film is also a source of revenue for the producer.
Sometimes what happen is a film earns more from the royalty and premiums without even being released in the market. This is what happened with Linga. Where the craze of the superstar Rajni Kant is sky high.
So broadly these are the major sources of revenue for a film. Apart from it, licensing fees to broadcast the films on various platforms is also charged and added to the revenue of the film.
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