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What is net collection gross collection and distributor share in bollywood films?
Gross collection is Total number of tickets sold multiplied by the ticket rates..
Net collection is when the Entertainment Tax is deducted from the gross..
Distributor's share is when the the rent and profit of the multiplex owners is deducted from the net collections..
This can be explained with an example
GROSS 100,00,00,000 (Rs 100 cr) 1.25 crore tickets sold at an average price of Rs 80 per ticket.
NETT 60,00,00,000 (Rs 60 cr) On an average its 40% across India, so deduct 40 crores
SHARE Rs 30-35 crore From the nett, various theatre owners deduct their cut (as rent) and forward balance to distributor
**Gross= Share+ Ententainment Tax+ Theatre rentals**
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