It’s quite common in Tollywood that the audience and fans eagerly wait to know the final collections of the movie in which their favourite actor has been a part of. With the vast increase of websites and print media, the competition increased hugely and everyone come out with their figures of gross, net and shares of films that turned out to be super hits. As most of them are unaware about the difference between them, we are here to reveal out the exact meanings.
Movie Gross Collections:
The total amount of money collected after selling the tickets in a theatre is called as gross amount. The total amount of money that has been collected in all the released theatres can be called as total gross collection which will not completely reach a distributor or the producer.
Net profit Collections:
Every government collects a percentage of amount as entertainment tax that has to be paid to the government. In Andhra Pradesh and Telangana, the tax is 12% and that percentage of amount will be calculated from the gross amount. The amount reduced after paying to the government from the gross amount is called the net collection of the film. The entertainment tax is different for straight films and dubbed movies.
Every theatre has their own rent for screening a film and it may be caliculated on weekly basis or on monthly basis. It may be caliculated on percentage basis depending on the performance of the film. The final amount that will be deducted from the net and sent to the distributor / producer can be called as share collected which goes into their pockets.
If a film collects Rs 1 crore gross, the entertainment tax becomes Rs 12 lakhs and the net amount becomes Rs 88 lakhs. The theatre rent comes close to Rs 20 lakhs and the final share of the movie is Rs 68 lakhs which will be shared between the producer and the distributor depending upon their agreements.