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      Trade
9-01-2020
Distributor Share Policy Update - January 2020
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Note : Check Below for clear explanations of Different Trade Terminologies. No Changes whatsoever will be made to the old data.


Distributor Shares have always been a little Controversial when it comes to Big Releases especially on Day 1!. Our Telugu States Distributors are always used to add Fixed Hires and nowadays (Assumed) they are adding GST Returns (daily) as well. It is Technically not feasible to separate Hires from Distributor Shares as the Distributors will not be having any sort of tracking for that particular Centre/Theatre. This is a widely acceptable policy from the beginning and it is here to stay.

But the problem arises when it comes to MG`s & SG`s. The Distributor here will have a daily tracking and  they get reports like every other running centre/theatre. Adding MG`s & SG`s to the 1st day has always been unethical and highly misleading. This has started in the last decade or so and now has come to a stage that our Distributors have started to manufacture imaginary Buyers just for the sake of showing Big numbers on Day 1 and claim Records for their film. Obviously Distributors are not the only ones to be blamed here as most of the time, it is the pressure from the Particular Movie`s Team or the Lead Star`s Fans.


We have been receiving Requests from Many Readers, Interested Parties and Trade People themselves to not to carry the Shares as it is and exclude MG`s & SG`s as they have daily tracking and these centres being shown in Day wise Shares from Day2 onwards is possible and a clarity can only emerge in long run. We have talked to the stakeholders from the Trade Fraternity and most of them are of the opinion that Reputed platforms should stop showing these artificial figures so that the pressures from the Team and Fans will come down at-least in the near future!. 


So, Starting with this Sankranthi 2020, we will not be showing any MG`s and SG`s in Day 1 Figures. The Figures will continue to include Fixed Hires and GST Returns as it is technically not feasible to differentiate and pinpoint the actual`s. The Daily Share from MG and SG Centres if it is not feasible, will be added in long run since they will have tracking. This is our sincere effort to bring the Distributor share as closer as possible to the Actual Worth Theatrical Share to paint an accurate picture and bring transparency. Happy Sankranthi!.





Trade Terms Explained.

Gross = Total Ticket Sales (excluding Maintenance Charges)

Nett = Gross - GST (12-18% depending on Ticket Price as of date in India, levied on Nett)

Share = Nett - Rental ( Can be a Fixed Fee or some 30-60% of Nett)

Fixed Hire = An Exhibitor/Buyer Takes over a Particular Centre/Theatre for a Pre-agreed Non-recoverable Price. Profits solely go to Buyer. There won`t be any tracking.

MG ( Minimum Guarantee ) = An Exhibitor/Buyer pays a Pre-agreed Non-recoverable Advance for a Particular Centre/Theatre. Profits will be shared between Buyer & Distributor. There will be tracking.

SG ( Share Guarantee ) = An Exhibitor pays a Pre-agreed Non-recoverable Advance for a Particular Centre/Theatre. Profits will not be shared with  the Exhibitor. There will be tracking.

GST Returns / Input Tax Credit =  When acquiring a film, Distributors pays GST over and above the selling price. After the film gets released, The Government also gets GST revenues via Ticket Sales. But to avoid double taxation, Union Government keeps whichever (GST from Acquisition Transaction or Box-office) is better and returns the remaining.
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