TAMILCINEMA DISTRIBUTION AREAS & METHODS

1. Chennai City

2. N.S.C - (North Arcot,South Arcot,Chengalpattu)

3. Kovai - (coimbatore)

4. Salem

5. M.R - (Madurai,Ramanadhapuram)

6. T.T - (Trichy,Thanjavur)

7. T.K - (Thirunelveli,Kanyakumari)

8. Other States - (Karnataka,Kerela,Andhra,Mumbai)

9. F.M.S - (foreign,malaysia,Singapore)

There are three popular approaches to transfer of distribution rights via distribution contracts:

1. Minimum Guarantee + Royalty - Here, the producer sells the distribution rights for a defined territory for a minimum lump sum irrespective of the box office performance of the film. Any surplus is shared between the producer and distributor, in a pre-set ratio (typically 1:2) after deducting entertainment tax, show rentals, commission, print costs and publicity costs. Effectively, the distributor becomes a "financier" in the eyes of the market. This is the most common channel available to high budget producers.
2. Commission - Here, the distributor pays the producer the entire box office collection after deducting commission. So, the entire risk of box office performance of the film remains with the producer. This is the most common channel available to low budget producers.
3. Outright Sale - Here, the producer sells all distribution and theatrical rights for a defined territory exclusively to a distributor. Effectively, the distributor becomes a "producer" in the eyes of the market. So, the entire risk of box office performance of the film remains with the distributor.

There are four popular approaches to transfer of exhibition rights via exhibition contracts:

1. Theatre Hire - Here, the exhibitor pays the distributor the entire box office collection after deducting entertainment tax and show rentals. So, the entire risk of box office performance of the film remains with the distributor. This is the most common channel for low budget films, casting rank newcomers, with unproven track record.
2. Fixed Hire - Here, the exhibitor pays the distributor a maximum lump sum irrespective of the box office performance of the film. Rental is not chargeable per show. Any surplus after deducting entertainment tax is retained by the exhibitor. Effectively, the exhibitor becomes a "producer" in the eyes of the market. So, the entire risk of box office performance of the film remains with the exhibitor. This is the most common channel for high budget films, casting established front-runners, with proven track record.
3. Minimum Guarantee + Royalty - Here, the exhibitor pays the distributor a minimum lump sum irrespective of the box office performance of the film. Any surplus after deducting entertainment tax and show rental is shared in a pre-set ratio (typically 2:1) between the exhibitor and distributor. But risk of deficit remains with the exhibitor. This is the most common channel preferred by single screens.
4. Revenue Share - Here, the exhibitor shares with the distributor, in a pre-set ratio (typically 1:2), the entire box office collection of the film after deducting entertainment tax. Rental is not chargeable per show. So, the entire risk of box office performance of the film is shared between the exhibitor and distributor. This is the most common channel preferred by multiplex screens. (info-Courtesy : WIKI)