Producers are involved in all departments of filmmaking. The most difficult task for a producer is managing people and raising money. How the producer selects the story and produces the film; What kind of challenges arise from shooting the film to its release, we’ll find out in this week’s episode of Reel to Real.
To understand the entire process of making a film, we spoke to filmmakers Vivek Sharma and Sunil Darshan.
The producer is the head of the film. The entire responsibility for any film lies with the producer. The job of a producer is not limited to just financing, rather the producer is involved in all departments of filmmaking.
The responsibility for casting the actors in the film lies with both the director and the producer. The casting of the film’s actors is carried out by both the director and the producer. However, there is usually a contract between the actor and the producer. It is mentioned in the contract that they will be paid approximately before dubbing, but 20% is withheld so that they can attend promotional events. The producer also handles payments for the rest of the crew, etc.
The producer receives a share of the excess revenue from the film. When films earn more than the price set in the agreement, that revenue is called excess. Like the film, RRR had earned around Rs 500 crores even before its release and the total collection of the film was around Rs 1,100 crores. In addition to the distributor, part of the revenue from this overflow also goes to the film producer. The producer’s participation percentage is already indicated in the agreement.
How does the producer share the revenue from the films? When the producer sells the film to the distributor, he owns 50% of the ownership rights. If the investor has invested Rs 20 crore in the film, we will return Rs 20 crore to him first. After that, he pays 50% of the net profit to his investors.
Producers also make money from different film rights. Nowadays, there are many film rights. The films are dubbed into regional languages. Films also have remake rights, copy rights and digital rights. Generally, producers earn revenue through theatrical rights, OTT (digital rights), and satellite rights. The producer sends the dubbing rights. Films shown during flights lasting 7 to 8 hours have separate rights. In this way, 30 to 35 rights are acquired, from which the producer benefits throughout his life.
However, much depends on mutual consent. Suppose a film becomes a big hit, then the producer decides how much profit to make from it. There is such a strong bond between the distributor and the venue owner that they try to get a smaller share of the producer’s profits.
Just like the producer, the distributor also suffers losses. If the film fails, the producer suffers a lot. Home offices are also being sold to return investors’ money. Often the distributor also suffers huge losses. Sometimes the distributor buys the film at a higher price, which is not recouped. The theater owner also suffers a loss. It often happens that if the film does not work, even the rent for the air conditioning in the theater is not paid.
There is never a fixed amount on the deal, the deal is percentage based. As a result, the distributor gives profit to the producer. The profits from the film are shared by the combination of investor, producer and distributor. Suppose an investor has invested Rs 100 crore in the film, the producer will first return the capital amount to the investor. The producer will share with the investor the profit of the percentage that the distributor sends to the producer.
At present, the condition of producers is the worst. Vivek Sharma said that becoming a producer in today’s times is a very difficult task. Previously, it was easier for producers to raise money. The actors’ fees are also not very high. But nowadays, actors’ fees are very high. Second, actors also impose their demands on producers. Previously, there was no interference from actors or anyone else in the production work. However, now everything is the opposite.
In the South, producers ban actors, but in Hyderabad, producers meet and share their experiences. Their producer lobby is very strong. If an actor or actress harasses a producer, they are banned. The actors are therefore under the control of the producer.
Today, it is wrong for stars to demand a share of film profits. Vivek says that these days, stars have started demanding a share of profits from films. This is a very bad practice. If the stars ask for a share of the profits, they should also bear the loss. The owner of the film is the producer, not the star. The star is the spokesperson for the story.
Shahrukh did not take 25 lakhs from the ATM. Shahrukh Khan’s film ‘Phir Bhi Dil Hai Hindustani’ didn’t work. This film was distributed by Yash Raj in Mumbai. Here, the film grossed only Rs 3 lakh, but the film was not released in other centers. Rajasthan distributor Raj Bansal had picked up the film for Rs 25 lakh, but he suffered a loss.
When Shahrukh Khan came to know about this, he did not take 25 lakhs from the ATM. Raj Bansal felt Shahrukh getting angry. That’s why I didn’t take any money. Shahrukh explained to him that you are like a member of our family. You should not suffer any loss, I will cope in the next movie. After this, Shahrukh Khan had raised Rs 25 lakh in the film ‘Main Hoon Na’. The distributor had earned well from this film.
Before, the producer was very respected. Filmmaker Sunil Darshan said, “Earlier, the producer was very respected. The producer didn’t just mean he was raising money for films. The producer was involved in all film genres. Today, with the arrival of corporations, many things have changed. Now the stars have started to decide everything.
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