Question: Animation films do big business worldwide, as seen with Ne Zha 2 and Zootopia 2 being the two biggest films of last year. Why is that not the case in India?
(Saurabh Khatri, Gwalior)
Answer: Yes, animation films are huge at the global box office. There are a couple of factors that go against the genre in India. The animation films are often looked down on as kids’ cinema, which, in a practical sense, is true, as children are indeed the primary demographic driving animation worldwide; the key difference lies in who makes the viewing decision. In India, moviegoing is predominantly an adult-led activity. Children rarely decide what the family watches in cinemas, especially outside the top urban centres. As a result, animation often doesn’t become a priority outing. Over time, with more Western exposure, things shall improve at this front.
Because the genre hasn’t delivered consistent theatrical success, investment in local animated films remains limited. Lower budgets frequently lead to poorer quality, which further affects audience perception and creates a cycle of underperformance.
The two local animated films that have found box office success, Chaar Sahibzaade and Mahavatar Narsimha, had religious traction, which widened their appeal from more than just animated films. Films like these could be an introduction to the medium to the masses, and if done well at regular intervals, could build the medium for other subjects.
The technology is also becoming more accessible and cheaper, so animation quality should improve as well. It may take some time to reach the level at which animation films work elsewhere, but they may do well at the Indian box office in future.
Question: How do Telugu Box Office Terms work, like Hires, Shares, GST, Gross, MGs, NRA, SGs?
(Ayush Suthar)
Answer: These aren’t just Telugu box office terms but apply to theatrical business in general across industries.
GROSS is simply the amount received by cinemas on selling a ticket. Say a cinema sells just one Rs. 118 ticket for a film. The GROSS is Rs. 118. Out of this, Rs. 18 goes to the government as GST, leaving Rs. 100 as NETT. That money is then distributed between the cinema and the distributor/producer, which is generally 50:50, though it could differ depending on the type of cinema, the week of run, etc. Taking 50:50, Rs. 50 received by the distributor/producer is called SHARE.
In most cinemas, distributors track their earnings extensively daily. However, in some places, generally smaller centres, distributors give their film for exhibition to the cinema in one lump sum amount, which is called HIRE. This HIRE amount is generally for the entire run of the film; at times, it’s for a week or even a day. While reporting box office, distributors generally add the HIRE amount on the first day SHARE, as such, you have full run earnings of that cinema reported in just the first day and after that, there are no collections reported from that cinema.
Coming to MGs, NRAs, SGs, etc., these are terms used in the acquisition of films by distributors from producers. One is ADVANCE, in which the producer gives his film to a distributor in exchange for some money in advance. Depending on how the film does, the distributor will either give more money after keeping his cut or take a refund, if SHARE fall short of that advance. In NRA, i.e. non-refundable advance, as the name says, the advance is non-refundable in the latter case.
Then there is MG, i.e. minimum guarantee, in which the distributor guarantees an X amount, which he will pay to the producer, irrespective of how much SHARE that film earns. If a film earns more than the MG amount, that surplus amount is shared between the distributor and producer.
Further, exhibitors also give MGs to distributors to get to play a film. It also works in the same way, as the exhibitor guarantees a certain SHARE to the distributor irrespective of how much the film does. SGs, i.e. Share Guarantee is also kind of MGs, just that in MG exhibitor can pay part of the MG in one go, while in SG, the entire amount is paid upfront. Generally, the SG amount would be lower than the MG, as it is riskier.
Pinkvilla Q&A will be published every Wednesday. You can send your questions to jatinder.singh@pinkvilla.com with your name and place.
