How movies make money in 2020 | Money making model of Bollywood movies | Sidtalk.

How Hollywood or Bollywood movies make money in 2020. The business model of movie production. Money making model of Bollywood movies.Case study of the film industry. Sidtalk.

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How movies make money in 2020

Different Roles for Making of movies

Now a day numbers of movies release in India and the world. Movies industry is the most profitable business in the real world
As there is more risk also. First of all, let’s know how Movies are made and in which parts money needs to pay for making movies.


 For the making of movies, the producer plays the most significant role. A producer is a person who invests his money on movies budget. A movie required story script, according to script start cast are arranged i.e who will be hero, heroine and other main characters. A producer has to give money to all star cast as well as a story writer. Now the script is ready and star cast are selected, now the matter comes in which places shooting should be performed. A producer has to spend money on different locations where film shooting is performed. After the shooting is performed film editing process starts in this whole film recording will be edited according to film script and people demand.

Role of the producer in movies 

  Now, the film is ready in a small hard disk. Now the producer has to make a decision whether this movie has to sell directly to the distributor or to Collab with them. If the producer sells that movie to distributer, then it is the total responsibility of distributer to make a profit with those movies.

How movies make money in 2020

Let us know about the distributor.

Movies distributer studios

Distributors used to distribute the movies copy to different location i.e cinema hall, multiplexer, mall, etc. Some name of big distributor is Yash Raj, Dharma production, fox star, etc.
The distributor has to make branding for those movies. i.e to run adds on t.v. ,promotions, banners,etc.

How movies make money in 2020

  The distributor is divided into sub-distributor according to the different region this sub-distributor have a connection to the cinema hall, multiplexer, and malls in which is projected. In the cinema, the hall margin is 30:70  30% goes to the cinema hall while 70% to the distributor. But this ratio is not the same in multiplexer in multiplexer first-week commission is 50:50 while it is gradually decreased from the distributer’s side. It depends on times 2nd week it become 60:40.
Thus distributer’s makes money by buying movies from the producer. if movies become hits then they will be in profit while they has to face loss.

Copyright Earning.

How movies make money in 2020

Not only through distribution of movies make money but also through their copyright content. Generally a single movies contain 5-6 song these song comes under copyright policy. Many telecom Company use callertune for a particular song  this company has to pay to movies producer or distributer or has to own their copyrights . maximum profit is under satellites copyright . i.e. on which channel your movies is telecast for first time it is know as World Television Premiere (WTP).these right are to costly from these rights movies make enough moneys.

Some examples of Highest grossing movies.
1 Dangal
Budget 70 crores collection 2024-2100 crores.
2 Bahubali
Budget 250 crores collection 1810

 take an example.
Suppose Hindi Medium movie is made from the expense of 20 crores.
I am the producer and you are a distributor.
I sold it to you in 40 crores.
Here I made a profit of 20 crores.
Then, you spent 10 crores on promotion, marketing etc.
Overall you have spent 50 crores.
You obtained 15 crores from satellite right etc.
After this, you sent a movie to sub-distributors and they sent them to theatre owners.
Let’s say movie Hindi Medium earned 100 crores.
After paying G. S. T :- 100 * 28/128 = 22 crore.
78 crore is left. They will divide it in 25:75
You got paid – 78 *75 / 100 = 58.5 Crore.
Cinema owner – 78 – 58.5 = 19.5 Crore.
Overall, you spent 40 +10 = 50 crore. And got 15 crores from selling to satellite right. And 23.5 crore total profit.
Then it is said to be Hit movie.

In reality, Hindi medium budget was 23 crore and box office earning is 300 crore. Now you can calculate 🙂

Movie industry is most profitable business therefore many hero’s starts their own production house.
So , This movies cycles work .
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