Revenue

How to calculate the revenue of movie investment ?

(1) After the film is released, all the box office receipts shall be recorded into the electronic ticketing system, and the data shall be uniformly summarized to the Special Fund Office of China Film Industry.The statistical data of the Special Fund Office shall be used as the basis for the sharing of accounts between the parties. First of all, a special business tax of 3.3% and a special fund of 5% shall be paid for all film revenues.The remaining 91.7 percent was considered a movie's "distributable box office."

(2) In the box office that can be divided into accounts,cinemas will keep 57%, and China Film Digital will keep 1-3% for the distribution agency fees.The remaining 40-42% goes to the film's producers and distributors.The distributor of the film will charge 5 to 15 percent of the box office that belongs to the distributor of the film as the distribution agency fee.That is, 2-6% of the distributable box office is used as distribution agency fee.

(3) In many cases, the distributor prepays for the promotion and distribution of the film, in which case, the distributor will charge 12-20% of the agency distribution fee.If the issuer promises to issue guarantees, buyouts, prepayment of production costs, etc., higher distribution agency fees will be charged.

(4) The formula of box-office receipts recovered by the producer is: 1* (1-0.033-0.05) *40%* (1-0.1) =0.33, which is the producer's share under normal circumstances.A film with a final box office of 100 million RMB will earn about 33 million RMB in box office returns.

There is a simple formula for calculate :

Investment proportion  =  (Investment amount) /(movie cost)

Anticipated profit      =  (Box office forecast)*33%*(Investment proportion)

 

For example :

If invest 100,000.00 RMB ,the Movie cost is 100 million RMB ,and the box office is 1 billion ,

Then you can got at least 330,000.00 RMB total finally .

Like below :

Investment amount ¥100,000.00
Box office forecast ¥1,000,000,000.00
Movie cost ¥100,000,000.00

Calculate now

Investment proportion  =  (Investment amount) /(movie cost)

=100000/100000000=0.1%

Anticipated revenue    =  (Box office forecast)*33%*(Investment proportion)

=1000000000*33%*0.1%=330,000 RMB