Jawan, starring Shah Rukh Khan, became the second Hindi film this year and the third overall to gross over ₹1000-crore on Monday. The first celebrity to join the group was Aamir Khan, who did so in 2016 with the biographical sports drama Dangal. This achievement was also accomplished by Shah Rukh’s Pathaan earlier this year.
Here is a look at what the figures signify and who will receive what share of the enormous sum as the third Hindi film to gross ₹1000-crore hits theatres.
Each film has a different method for allocating profits to its various stakeholders. Producer and industry expert Girish Johar explained that the division does not have a set number because it relies on the contract that is agreed upon for each film. Nonetheless, the producers’ share of the nett box office collection can roughly be placed between 45 to 50 percent.
In the hierarchy of profit sharing, the exhibitors are placed next. Rashmikant Bhalodia, CEO of Galaxy Cinema, placed the percentage for the exhibitors at 30%, although Girish claimed they receive between 37 and 38 percent of the box office take.
According to Rashmikant, CEO of Galaxy Cinema (Rajkot), distributors receive between 15-20% of a movie’s total box office receipts.
Shah Rukh Khan and Aamir Khan, two prominent Bollywood actors, are the leads in every movie that has made over one billion dollars. For a while now, these performers have been receiving a cut of the movie’s revenue. Ramesh estimated the percentage at 5% of the actor’s overall box office earnings. Girish explained that most of the big stars in Bollywood take a profit share in box office revenue, as well as other revenues, making it a much bigger number. He did not put a percentage to the actors’ share.
Girish Johar explained the division in detail, “If the ticket is for ₹100, roughly ₹25 is for the entertainment tax. ₹75 is shared between distributor and exhibitor, broadly divided into two halves. From the 37.5% of the ticket price, the distributor takes broadly 10% and the rest goes to the producer.”
He added, “If the producer takes ₹30 of the ₹100. Of the producer’s share, the lead actor takes a percentage of the producer’s share of the box office collection. The lead actors also take a profit percentage of all revenues normally – that includes the satellite, digital, and music rights as well.”
It was a new record when Dilwale Dulhaniya Le Jayenge made 100 crore rupees at the box office, and now it is common for blockbuster films to surpass that amount in their opening weekend. A significant factor in the rise in these figures, besides inflation and rising purchasing power in the nation, is the expansion of multiplex chain movie theatres.
Girish agreed: “Definitely, the multiplexes and their increased ticket prices have played a major part. Earlier we were ₹1000-2000 crore industry and now we are clocking more than ₹5000 crore. Now, they contribute around 70% of the Hindi market box office, including dubbed (Hollywood). They are still expanding as so many cities in the country are virgin cities for multiplexes.”
Rashmikant Bhalodia, CEO of Galaxy Cinemas in Rajkot, concurred that multiplex ticket prices have significantly increased box office numbers over time.
Executive Director of PVR INOX Limited Sanjeev Kumar Bijli said, “There were fewer multiplex screens earlier, with penetration in Tier-2 and Tier-3 cities, multiplex screens have increased and now it takes less time to reach the magical figure (of ₹1000 crore). The growth of large screen formats such as IMAX, PXL, BIGPIX and experiential formats like 4DX, MX4D, ICE for screening these movies have also contributed.” He added that cinema owners accommodating maximum shows (practically possible), based on the audience demands, has also played a role in making these movies bigger at the box office.”
He also talked about the changes in cinema viewing patterns post-pandemic. “The pandemic caused a temporary disruption to cinema-going habits of people as an out-of-home entertainment destination. Once the content started resonating with the audiences, we witnessed never ever achieved box office numbers in the history of cinemas clearly proving that there are no set boundaries for a movie’s success.”
Sajeev Kumar also said, “Successful movies in multiplexes can be given longer runs, and that allows them more time to attract viewers and generate revenue. This extended screening period contributes significantly to a movie’s overall score,” he concluded.