Gross, Net and Share

Now-a-days many of movie producers are announcing BOX OFFICE collections to market their movie. We come across some words like Gross, Net and Share.

In this article, I am going to discuss about the difference between Gross, Net and Share.

What is meant by Gross collections?

Gross collection = Number of tickets sold*Ticket price.

For example, if each ticket cost Rs.100 and number of tickets sold in a theater is 250. Total gross collected by movie is Rs.25,000.

What is meant by Net collections?

Net collections = Gross - Taxes

Taxes include Local municipal taxes CGST and SGST. 

Continuing the example, Entertainment tax being 28% taxes will amount to Rs.7,000. Net collections would be Rs.18,000 (Rs.25,000-Rs.7,000)

What is meant by Share?

Share = Net collections - Theatre rent - Exhibitors share

Let us say, theatre rent is Rs.2000 per show. And exhibitors share depends on agreement between the distributer and exhibitor. It might vary from 80%-20% to 50%-50%. In case of multiplexes it's around 60%-40%.

So, share would be Rs.12,600.

=> Rs.18,000 - Rs.2,000 - Rs. 5,400 = Rs.12,600

Considering our example,

Total GROSS Collections = Rs.25,000

Total NET Collections = Rs.18,000

Total SHARE = Rs.12,600

Thanks for reading with patience.

#TeamMM