A view on film distribution in India

1) Generally for small budget films how much commission does a pan India distributor charge from the producer?
It depends on deal-to-deal and the coverage required. It can be a certain percentage (10-15% of business) as commission or a lump-sum amount.

2) In such an agreement who spends on the P & A?
All costs are borne by the producer unless there is a specific arrangement whereby P&A spends are reimbursable to the distributor.

3) How much is the least P & A budget that is required or sufficient for such a film?
Depends on the type and size of the film and the area to be covered under the marketing/publicity/distribution plan. However a producer must provide a minimum of 5 Cr for effective P&A expenses for a small film.

4) How much does a sub distributor get from the pan India distributor for distributing the film in a certain circuit?
It could be fixed or the Sub-distributor has a share in the distribution-pie, which is normally half of the master distributor’s share.

5) In such a agreement who pays for the ufo /qube (or any other provider) their fees?
In today’s scenario all costs are to be borne by the producers.

6) How are sales on ticket collections (revenue generation) known to the distributor or producer?
Through daily collection reports called DCRs. Which are accumulated and accounted for in the weekly/monthly business statements.

7) Is it mandatory for the distributor to be a member of the distributors association or council to release a movie?
It is advisable for a distributor to become a member of the Associations although the same is not mandatory.

8) At present who are the distributors who distribute small films with P & A?
NONE… however they could provide all services to the producer for a fee.

9) Approximately how many screens do small budget films get?
Its hypothetical as screen availabilities are dependent on several factors like opposition, timing of release, the movies buzz etc. But there is no guarantee. Single and multiplex screens can be hired for a fixed rental (as in the case of MSG and few other films).

10) Line up the distribution circuits in the order of 1-2-3 on the basis of revenue generated
This is an approx. estimate for Hindi films.
(33%) Mumbai circuit inc: Mumbai, Gujarat, Goa and western Maharashtra
(20%) Delhi/UP inc: Delhi Uttar Pradesh. and Uttrakhand
(8%) Punjab circuit inc: Punjab, Chandigarh Haryana, Himachal Pradesh & Jammu
(15%) Eastern circuits inc: West Bengal 4%/Bihar 7%/Orissa 2% Assam 1% & Nepal 1%
(5%) Rajasthan circuit
(5%) CP circuit inc: Eastern Maharashtra, eastern M.P. & Chhattisgarh
(4%) CI circuit inc: North & western Madhya Pradesh
(4%) Nizam ,Andhra & Ceded circuit inc: Telengana, North A.P. and southeast Maharashtra)
(5%) Mysore (state of Karnataka)
(1%) Tamilnadu & Kerela

11) Are you a Pan India distributor or for Mumbai circuit? And which movies have your released?
We are generally been distributing films in Delhi/U.P. and Punjab territories.

12) Presently which are the companies buying /acquiring digital, satellite, overseas, Internet right of both big budget and small budget films?
For satellite rights there are Star, Zee, Sony, & Colors For overseas and digital rights there are Eros, YRF, Disney, B4U, Shemaroo, Ultra, Star network, Zee and Big Reliance etc. Also on the anvil are Jio, Singtel, You-Tube and several other digital companies.

13)Tell us about the digital distribution of films.
All films are digitally distributed now, barring a few rare exceptions. They are distributed using satellite networks, high-speed Internet, and also through physical delivery of a digital copy, which is a hard disk. Digital distribution service providers like UFO and Real Image encrypt films before transmitting or distributing them as a safeguard against piracy and charge the producer/distributor for this service. Theatres store the film on computers that are connected to a digital projection system. Important theatre chains in big cities like PVR have high-end Digital Cinema Initiatives (DCI) compliant projection systems insisted upon by Hollywood studios/distributors. Theatres in smaller towns generally have far more affordable low-end projection systems since they don’t exhibit Hollywood films and cannot afford high-end systems since their ticket prices are low.

14)How would a theatre owner/exhibitor decide which films to run and at what show timings?
Since theatre owners and exhibitors have made huge investments in real estate, equipment and facility development and have very high running expenses, they prefer to exhibit a film that will attract maximum footfalls. These are generally star-studded blockbusters that also have very high price tags. Theatre owners/exhibitors negotiate with producers/distributors and prefer to screen films they think can give good returns. A film’s stars cast, music, genre, marketing spend, audience expectation, and price are some of the key factors that count in their selection of films. Big films get the best of time slots since their distributors and producers make it a condition before assigning the exhibition rights to theatre owner and exhibitors.

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