Film Distribution Circuits in India

Film distribution is on of crucial work in Film making where most of the film makers fails. Today i'll be explaining about Hindi film distribution.
Hindi film distribution circuits comprises territories which have been created by film distributors for releasing a film or Hindustani cinema (as it was earlier known) across India. Firstly these Circuits were divided 6 Circuits in 1930 namely.

1. Bombay circuit
2. Eastern circuit
3. Delhi-U.P. circuit
4. C.P., C.I., Rajasthan circuit
5. Punjab circuit
6. South circuit

Presently these 6 territories were divided into 11 parts.

1. Bombay Circuit : Mumbai, Gujarat, Goa, parts of Maharashtra & Karnataka (Comprises areas that formed the erstwhile Bombay State and Portuguese-ruled Colonies)
2. Delhi circuit : Delhi, Uttar Pradesh & Uttaranchal
3. Nizam circuit : Telangana, parts of Maharashtra & Karnataka (Comprises areas that formed the erstwhile Nizam State)
4. East Punjab circuit : Punjab, Harayana, Chandigarh, Himachal Pradesh and Jammu & Kashmir
5. Eastern circuit : West Bangal, Bihar, Jharkhand, Orissa, Assam & North-Eastern states, Andaman & Nicobar Islands as well as Bhutan and Nepal 
6. C. P. Berar circuit : Maharashtra (Vidarbha), Madhya Pradesh (south & west), Chhattisgarh (Comprises areas that formed the erstwhile Central Provinces and Berar State)
7. Central India circuit : Parts of Madhya Pradesh
8. Rajasthan circuit : Rajasthan
9. Mysore circuit : Bangaluru and parts of Karnataka (Comprises areas that formed the erstwhile Mysore State)
10. Tamil Nadu circuit : Tamil Nadu & Kerala
11. Andhra circuit : Andhra Pradesh

From all 11 circuit Bombay and Delhi is considered maximum earning circuits. So Filmmakers do consider these circuits before making their film.

HOW DISTRIBUTION WORK :

Production Stage:
Let's start with that you want to make 'XYZ' film. After the budget with all up's and down you finally made your film and you are ready for release.
Now the next step is to promote your film which is commonly known as P&A . In this stage you intrigue your audience with Teaser, Trailer, TV Promotion, Online marketing, Songs.

Distribution Stage:
In this stage You need a Distributor. Now the problem start, let's consider some of the cases you may face while searching for distributor.

• Low Budget, new cast and no money for P&A (mostly happens) : This is were most of the film got stuck, with so many hard work you had made film and no one is buying it . So anyhow to avoid this situation, if your film is small and new cast keep some amount for promotion.
• Poor qualities and Technical issues (some time happens) : These are mainly technical issue which can be resolved. Eg : Mastering is not properly done, sound problem, Cinematography and direction issue. In this cases distributor negotiate with producer.
• When you have big cast and good budget (safe zone) : Most of the film are made in this zone only. As you announce you film big distributor want to come on board. This time produce may ask for higher price. 
• You are both Producer and Distributor (extreme safe zone): In this case you fully sure your film is going to release weather it's small budget or big budget. Also you are the person who will be getting all the profit. 

Profit shearing between Exhibitor and Distributor :

Some of the technical term you should know about this whole process.

Cost of Film= [Budget + PA (Promotion & Advertisement) Expenses]

Non Theatrical Revenues= Satellite Rights + Music Rights + Overseas subsidy etc.

Gross Collections= Total money collected from ticket sales

Net Collections = [Gross collections – Entertainment Tax]

Distributor share: percentage of the collection after the entertainment tax.

Profit / Loss (Distributor)= [ Amount at which film was bought – Distributor Share ] 

1. Distributors sell various rights (Like satellite rights, Music right etc.) and try to secure as much amount as they can.
2. Distributors sell the film to sub-distributors of various film territories. The 11 territories are mentioned above.
3. Sub - distributors sell the film to the theater. After removing 20% entertainment tax the remaining part is known as Net Revenue which is sheared between Distributor and Theater owner. 

Some of the ratios in Profit shearing:

1. 25:75 (Single Screen theater owner : Distributor)  (Varies 20:80 or 30:70)
2. Multiplex owner : Distributor

          Week 1 - 50:50
          Week 2 - 60:40
          Week 3 - 70:30
          Later - same as week 3 (Subject to terms of agreement)

So that it in film distribution, hoping that this article will be helping your knowledge and increases your film-making perspective. 

Do leave your comments blow and shear with your filmmaker friends and producer.