Rs 35 on a Rs 100 movie ticket: How producers calculate ‘net box office’ figures

Rs 35 represents the net box office collection that a film producer receives from a Rs 100 ticket sale, according to Shobu Yarlagadda, the producer of the Baahubali franchise. This is after accounting for GST, the multiplex's share, and the distributor's commission. The gross box office collection is the amount left after deducting GST, which is often referred to by trade analysts.

Out of the Rs 82 net collection, the multiplex takes approximately Rs 41 in a 50-50 revenue-sharing arrangement, leaving Rs 41 for the distributor. The distributor then charges a commission, typically around 10 percent, which reduces the producer's earnings to approximately Rs 35 to Rs 36 per film. When a film is produced for a streaming platform, the producer's financial risk is minimal, as the OTT platform funds the entire project upfront and guarantees a fee if the production stays within budget.

However, the producer's upside is limited, as any additional earnings also go to the streaming platform.