Terminology

Producer : A film producer is someone who creates the conditions for making movies. The producer initiates, co-ordinates, supervises and controls matters such as fund-raising, hiring key personnel and arranging for distributors. The producer is involved throughout all phases of the film-making process from development to completion of a project.

Distributor : A film distributor is an independent company, a subsidiary company or occasionally an individual, which acts as the final agent between a film production company or some intermediary agent, and a film exhibitor, to the end of securing placement of the producer’s film on the exhibitor’s screen. In the film business, the term “distribution” refers to the marketing and circulation of movies in theaters, and for home viewing (DVD, Video-On-Demand, Download, Television etc).

Sub-Distributors :If the distributor subcontracts out distribution in certain territories, define the terms that these sub-distributors can charge the distributor, who in turn, will charge you.

Guarantees: Minimum amount of money the distributor promises to deliver to you over a period of time, usually 1-10 years

Distribution Fees: Percentage of Distributor’s Gross the distributor receives as his fee (not his expenses). It could be between 15%-40% but is usually 35%.

Break Even Point: Stipulate at what Box Office Gross dollar the distributor declares that the film has broken even, and state how revenues are to be split with the producer and investors.

ROI : Return of invenstment. This is revenue generated by movie.

WOM : Word of mouth. It indicates the general acceptance of movie by audience. It can be positive, negative or mixed.

Trending : Trending of movie is about how consistence the boxOffice performance is in subsequent weeks. Movie crashed after very good opening week suggests Poor trending and stable business after decent/average first week means good trending.

Opening : Opening of movie is first day all india business. First day good business means good opening.

All time blockbuster : If ROI is 500%+ for distributors then movie is declared as All Time Blockbuster. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Blockbuster : If ROI is 400%+ for distributors then movie is declared as Blockbuster. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

SuperHit : If ROI is 300%+ for distributors then movie is declared as SuperHit. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Hit : If ROI is 200%+ for distributors then movie is declared as Hit. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Semi – Hit : If ROI is 150%+ for distributors then movie is declared as Semi-Hit. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Above average : If ROI is 125%+ for distributors then movie is declared as Above average. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Average : If ROI is 110%+ for distributors then movie is declared as Average. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Below average : If ROI is 100%+ for distributors then movie is declared as Below average. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Flop: If ROI is 50%+ for distributors then movie is declared as Flop. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Disaster: If ROI is less then 50% for distributors then movie is declared as Disaster. However it also incurred the investment involved and relative performance. With bigger investment, final verdict of movie is more based on relative performance then ROI. However criteria is 65% weightage to ROI, 15% to Relative performance, 15% to Trending and 5% to WOM.

Regards

BollyBusiness