Hit or Flop are just different expressions for a Bollywood movie’s financial success, such as Profit or Loss. In the case of Indian movies, determining profit or loss is somewhat more difficult. Before assigning a picture a theatrical judgement, there are several factors to examine.
Producers create movies (in financial terms). Occasionally, the movie’s producers are also the distributors (Like Yashraj, Dharma Reliance, Eros etc.) Producers sometimes sell their films to distributors in order to guarantee a profit (individual producers such as Bonny Kapoor, Vashu Bhagnani, and many others like this).
Within the second scenario, the movie is often a success for the producers because they have already profited from it. Even yet, the theatrical judgement is important since it affects their future endeavours by adding credits or discredits.
The movie’s distributors are now spending a significant amount of money on marketing and promotion. Nowadays, one of the most important variables in determining whether a movie is indeed a success or a disaster is promotion. Distributors often spend 10-20 million dollars on marketing. The combination of the amounts given to the producers by the distributors as well as the amount spent on promotion is indeed the new cost of the picture.
Distributors sell different rights (such as satellite rights, music rights, and so on) in order to make as much money as possible.
The picture is sold to sub-distributors in various film areas through distributors. Currently, Hindi film distribution areas are separated into eleven territories, with one overseeing territory.
The movie is sold to theatre owners via sub-distributors. Gross income is the amount of money a film makes through ticket sales. Whatever the theatre makes, it must first pay the government a 20% entertainment tax. (Both single-screen and multiplexes)
Theatre owners split the profits with distributors following paying the Entertainment Tax. It is contingent on the character of the theatre. In the majority of situations, it’s similar to
Net income is currently defined as the amount received by distributors. The film will be declared a hit if indeed the net income (sales of tickets and rights) exceeds the cost (amount paid to the production + Promotions), else it will be a flop.
The phrases Flop, Super-flop, Hit, Super-hit, and Blockbuster are defined by the amount of difference between Cost and Net Income.
Also Read: What is the net worth of Bollywood actress Kriti Sanon?
