Q: You mentioned that Toxic APTS distribution rights were acquired by PVRINOX, but the acquisition was officially announced by SVC shortly thereafter. Why so?
(Coronation)
Answer: At the time the special report was published, the distribution rights of Toxic in the Telugu states were actually held by PVRINOX Pictures. The deal was finalized and confirmed through trade channels. However, soon after, SVC came up with a more aggressive proposal, leading to a change in distribution. In the film business, such developments are not unusual; Deals may develop if a better financial offer comes forward.
There are two conflicting reports on the amount of the SVC deal, one of which is Rs. 45 crore non-refundable advance, seems more plausible.
Q: Animation films are big business worldwide, as seen with Ne Zha 2 and Zootopia 2 which were the two biggest films of last year. Why is this not the case in India?
(Saurabh Khatri, Gwalior)
Answer: Yes, animation films are huge at the global box office. There are some factors that go against this style in India. Animation films are often seen as children’s cinema, which is true in a practical sense, as children are actually the primary demographic driving animation worldwide; The main difference is who decides to watch. In India, movie watching is primarily an adult-led activity. Children rarely decide what the family sees in theaters, especially outside top urban centres. As a result, animation often does not become a priority outing. Over time, with more Western exposure, things will improve on this front.
Since the genre has not yielded consistent theatrical success, investment in local animated films has been limited. Low budget often leads to poor quality, which further affects audience perception and creates a cycle of poor performance.
Two local animated films that have achieved box office success, Chaar Sahibzaade and Mahavatar Narasimha, had a religious appeal, which enhanced their appeal more than animated films. Such films can be an introduction to the medium for the public, and if shown well at regular intervals, can become a medium for other subjects.
Technology is also becoming more accessible and affordable, so animation quality should improve as well. It may take some time for animation films to reach the level at which they work elsewhere, but in the future they may do well at the Indian box office.
Q: How do Telugu box office terms work, like Rent, Share, GST, Gross, MG, NRA, SG?
(Ayush Suthar)
Answer: These are not just Telugu box office terms, but apply to theatrical business in general across all industries.
Gross is simply the amount theaters receive from selling tickets. Suppose a cinema costs only Rs. Sells. A ticket for a movie costs Rs 118. Gross Rs. Is. 118. Out of this Rs. Rs 18 goes to the government as GST. 100 as NETT. That money is then distributed between the cinema and the distributor/producer, which is usually 50:50, although this can vary depending on the type of cinema, week of run, etc. Taking 50:50, Rs. The 50 received by the distributor/manufacturer is called share.
In most cinemas, distributors track their earnings on a large scale daily. However, in some locations, usually smaller centers, distributors will let their film be screened at the cinema for a lump sum, called HIRE. This rental amount is usually for the entire duration of the film; Sometimes, this happens for a week or even a day. While reporting box office, distributors generally add the fare amount to the first day’s share, thus, you have the entire earnings of that cinema reported only in the first day and thereafter, no collections are reported from that cinema.
Talking about MG, NRA, SG etc., these are the terms used by distributors in acquiring films from producers. One is ADVANCE, in which the producer gives some money to the distributor of his film in exchange for advance. Depending on how the film performs, the distributor will either pay more money after its cut or take a refund if the stock falls short of that advance. In NRA, i.e. Non-Refundable Advance, as the name suggests, in the latter case the advance is non-refundable.
Then there is MG, i.e. minimum guarantee, in which the distributor guarantees an If a film earns more than the MG amount, that surplus amount is shared between the distributor and the producer.
Apart from this, exhibitors also give MG to distributors to play the film. This also works in a similar way, as the exhibitor guarantees the distributor a certain share, regardless of how well the film performs. SGS, i.e. Share Guarantee is also similar to MG, except in MG the exhibitor can pay some part of the MG at one go, whereas in SG, the entire amount is paid in advance. Generally, the amount of SG will be less than MG, as it is riskier.
Pinkvilla Quiz will be published every Wednesday. You can send your queries to jatinder.singh@pinkvilla.com with your name and location.
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