Numbers are very misleading. When a producer announces his movie grosses 100 crores, many people presume “collections – budget = profits”. This is far from it.
**Gross= Share+ Ententainment Tax+ Theatre rentals**
One of the most common terms we hear used in the trade is “gross”, “nett” and “share”. Most of the times, what you read in the papers is the “gross collections”. GROSS is nothing but number of tickets sold x ticket price. It’s the total amount generated by a movie at ticket counters.Entertainment Tax: Andhra Pradesh charges only 12%, one of the least in India. On an average, across India it’s assumed to be 40%.
Nett Collections : After the entertainment tax is deducted, what is left is the “nett”. He deducts his rent from the nett and forwards the remaining money to the distributor. This is called the “distributor’s share” or “share” in trade parlance. This is really the money from which the movie’s budget is recovered.
As a thumb rule, as per present trends in the Bollywood industry, the ‘share’ of a film is 50-55% of its nett.
| Term | Amount | Explanation |
| GROSS | 100,00,00,000 (Rs 100 cr) | 1.25 crore tickets sold at an average price of Rs 80 per ticket. |
| NETT | 60,00,00,000 (Rs 60 cr) | On an average its 40% across India, so deduct 40 crores |
| SHARE | Rs 30-35 crore | From the nett, various theatre owners deduct their cut (as rent) and forward balance to distributor. |
**Gross= Share+ Ententainment Tax+ Theatre rentals**
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