What is Percentage System and how will Producers benefit?
We must give a hypothetical example in order to discuss this. For instance, A producer charges X dollars to Distributor to sell the movie. The Distributor decides whether to use the rental or percentage system and communicates that decision to the Exhibitor with the goal of recovering costs as the primary consideration. The percentage scheme will be a 50% share, for instance, if the net sales for the movie are 10 L and the rental is 2 L.
In contrast to the 50% split, which would result in a loss for the Distributor/Producer, the leasing agreement would result in an 8 Lakh profit. The Exhibitor typically supports and agrees with the Distributor/Producer by offering them the option to pay rent or a percentage, and they can select whatever is most advantageous to them. Only when the rental rates are high for desirable homes in major cities, where the percentage method can be used, and this is the Producer's decision, can issues occur. How does engaging in a strike assist us, the producers?
Heroes are the backbone of our South's business, and they are revered as demi-gods. Any project's foundation is its director. Our industry is solely driven by supply and demand, therefore the hero's market drives the entire film ecosystem. The cost of production and the compensation will increase with the data-size of the hero. Everything will be in order if the Hero, Director, and producer are on the same page.