Marketing Ganga

Author: Shabbir Chunawalla

  • Distribution Circuits for Films in India

    India has been divided into 14 circuits for film distribution purposes. They are :

    • Mumbai
    • Delhi-UP
    • East Punjab
    • CI ( Central India)
    • CP Berar (Central Provinces)
    • Rajasthan
    • Bihar
    • West Bengal
    • Nizam
    • Mysore
    • Tamil Nadu
    • Assam
    • Orissa
    • Kerala

  • Exhibitors of Films or the Cinema Halls/ Screens

    Exhibitors own the theatre. They get the film for  exhibition from the distributor. They can make the following types of  revenue sharing arrangements with the distributor.

    Percentage : A fixed percentage of the collections (say 40-60 per cent ) are passed on every week to the distributor.

    Theatre Rentals : A theatre has a maximum financial capacity, say Rs. 10 lac per week. The thumb rule is 50 per cent of the maximum capacity to be retained. The exhibitor keeps aside 50 per cent of full-house capacity and the remaining is given to the distributor.

    Illustration : The collections are 15 lac. The exhibitor keeps Rs. 5 lac and passes on Rs.10 lac to the distributor. If the collections are Rs. 6 lac, the exhibitor keeps Rs. 5 lac, and the distributor gets Rs. 1 lac. If there is less than 50 per cent collections, say of Rs. 4 lac , the exhibitor will get Rs. 5 lac  nevertheless, but will not be paid immediately. It will be accounted for, and the accounts will be settled after the film is pulled off.In case, there is a shortfall in the per week payment of Rs. 5 lac for the exhibitor, it will be made good by the distributor.

    Theatre capacity is expressed in terms of revenue it can generate.

    This is widely used method in metros. It provides good money to the theatre-owners, since they are paid a fixed quantum of peak capacity. The exhibitor is not affected by the success or failure of the film.

    These days theatre-owners are ready to share revenues or overflows by accepting a smaller hire charge.

    Fixed rental : In this revenue sharing system, the exhibitor takes the risk and pays the distributor a fixed amount every week, whatever the collections. If the capacity of the hall is Rs. 3 lac, then the fixed hire could be Rs.1.5 lac per week. There may be a surplus, which can be shared with the distributor on mutually agreed terms. This method is useful in the interiors, but there are unscrupulous distributors who accept payment in cash, but declare a lesser amount while setting with the producer.

    In this business, the project finance that comes from the distributor is actually from cash flows that he receives from the exhibitors.

    In film finance, the contribution from distributors may be 30-40 per cent. The rest comes from credits ( on account of artists and labs ), music rights and satellite and video rights. This contributes 35-45 per cent, thus taking the total contribution to 65-85 per cent. The remaining 15-35 per cent comes from the financiers. These financiers are likely to be made world right controllers.

     

  • Hackers for Hire

    So far we have known Internet as a facilitator for e-commerce of billions of dollars but of late a beginning has been made for a new type of commercial activity — hacking at a price ranging from a few hundred dollars to a few thousand dollars. This activity was formerly associated with persons of disrepute, say criminals, political activists and hacktivists.These days it has become a personal enterprise where sites are floated to advertise the tasks to be performed and bids are invited to do these tasks at a price.Generally the tasks consist of accessing an email account, withdraw unflattering photographs or accessing the data base of a company.They have registered hackers.When they complete an assignment, the site gets a commission.Till the task is completed, the customer’s money is kept in escrow.Most common tasks are breaking into email account and social network sites.The sites do a background check on their registered hackers to assure that they are legitimate and not swindlers.The founders or promoters of the site neither endorse or condone the activities.The FBI conducted an investigation called Operation Firehacker to crackdown on such people but this has not slowed down their activity.Some corporates to assign tasks to ensure that their employees are not involved in hacking of sensitive information. Some sites like NeighbourhoodHacker describe themselves as certified ethical hackers who work with customers to secure their data, passwords and look after children’s safety.

  • Fevicol Adhesive

    It was introduced as an adhesive in 1959. It was earlier meant for craftsmen, but is now available for different segments such as students, office-goers and institutions. They try to find new applications. Fevicol owns the word bonding. Its ads are humorous and show bonding in different forms.They also show the strength of the bond.

  • Ripping Off the Customer

    A business class traveller, writes Vir Sanghvi, is charged for every small thing by the airlines, e.g. $10 for Martini, $3 for Coke and even $3 for water.Business class travel is highly priced and it can include certain basic services.However, airlines rip off the customer perhaps knowing that all these expenses will not come from his pocket but are on the company’s expense account. Similarly, a five star hotel charging RS 30000 or $500 for a room takes pleasure in ripping off the customer by charging for mineral water, phone calls, faxes, ironing and things from the mini-bar. Such ripping off is allowed as many guests do not pay out of their own pocket.There is the factor of oligopoly too. According to Saghvi, these organisations who treat the customers with more respect will benefit in the long run.Some basic minimums a deluxe room guest expect are free local calls, free ironing, free movies, free internet and free airport transfers. A hotel could afford these at the tariff paid today.The customer should also refuse to be ripped off and refuge to stay at hotels that offer nothing for these high rates.We should also mention here the hospitals who charge obscenely high amounts once they come to know that you have a health insurance policy.

  • Film Distribution

    Traditionally, India has been divided into 11 territories for film distribution. The distribution rights for these territories generate revenue. These days all producers have also started focusing on the overseas market and the sale of its rights. It generates a large percentage of total revenue. The other revenue streams for the producers are music rights and satellite TV rights

    The following arrangements between the producers and distributors illustrate how they agree to share the revenue.

    Advance : A distributor advances a certain amount to the producer. The amount is covered from the revenue generated by the film. If there is a shortfall, it is reimbursed by the producer. The distribution cost is borne by the distributor. He adds a commission on this.

    Minimum Guarantee : It is called royalty MG. A distributor undertakes distribution in a specific territory against a certain sum, which is a certain percentage of the production cost of the film.The producer is not paid full MG to begin with. He receives generally 30-40 per cent in advance and the rest against the first print. The cost of distribution is borne by the distributor — i.e. the cost of prints, publicity. The distribution cost mark up per cent is 10-20 per cent. It is added to the total cost which is recovered from the box office colletions. The overflow after adjusting total cost is split half-way with the producer.

    Commission : The distributor releases a film in the assigned territory and collects a 10 per cent commission on the takings. The whole risk is borne by the producer.

    Outright : A lump-sum is accepted by the producer from the distributor against rights of exhibition in the assigned territory for a specific period. When it is difficult to compute earnings in a certain territory, this is a suitable method. Previously, overseas rights were sold on an outright basis.

  • Copyright — New Thinking

    Gladwell quotes Lawrence Lessig, a Stanford Law Professor, who feels that copy right is not exactly ‘ property right’. A garden bench lifted from someone’s backyard is a theft, as the person steals it, and the owner does not have it any longer. However, if the nice garden furniture is kept in mind, and similar furniture is obtained from some source, it could not be called theft. What about the jacket you wear? Exactly, what do I take away from you?

    In publishing verbatim lifting of material is crime, and rightly so. But if just an idea is borrowed, and improved upon greatly so as to create a valuable work of art, what is it? In such situations, borrowing may be a compliment.

    Three Idiots transformed Five Point Someone into a work of art of higher order.

    We should think deeply about the economics and legality behind issues if copyright.

  • Sub-titling of Films

    Sub-titling a film enable those audiences who do not understand its language to appreciate the film. In a global market, a producer can longer afford to ignore the sub-titles. Many directors take sub-titling seriously, and sit with the writer of the sub-titles, and explain the film to him scene by scene. Mere translation is not enough. It is necessary to translate the thought. It is necessary to convey the cultural constructs. It is sometimes not necessary to translate each and every word. The gist of meaning could be conveyed. The sub-titles must be synchronized, and should not pop up before the sound. Sub-titles should not intrude on the film. It is true that good sub-titles may not improve a bad film, but bad sub-titles can definitely ruin a good film.Sub-titling  suffers because it is not a remunerative occupation. Sub-titles in the same language facilitate the understanding of the accent, say Hollywood English movies are sub-titled in English. Sub-titling for TV also acts as a filter for unacceptable words which can be converted into tamer words or omitted altogether. As sub-titling involves thinking in a new language, it is best assigned to a person who can do so, rather than to the native speaker of that language. This should be kept in mind while sub-titling the regional language films.

  • Tinkle Comics

    On  14th November, 2014, Tinkle comic turned 34. There are characters such as Shikari Shambu, Supandi and Tantri the Mantri. Tinkle covers a wide range of subjects. In the early days, the content consisted mainly of folktales, original stories around the characters and GK. Readers too contributed stories. Tinkle was launched in 1980, by a 12 year old girl ElaineD’Lima. There was no issue for December that year. It started having monthly editions from January 1981. It turned a fortnightly from 1982. In 1990, they came out with special holiday editions. The Tinkle Digest was launched in 1996.Savio Mascarenhas was the creative hand behind Shikari Shambu. Mascarenhas took over the illustrations from Shri V. B. Halbe in 1997. Tinkle today reaches through print, online and mobile. The two things that remain the same are the Indian essence and appeal to all age groups. Luis Fernandes is the editor of Amar Chitra Katha. Pradeep Sathe is the co-creator of Kalia the Crow and has beenworking with Fernandes for the lasr 20 years.

  • Cadbury –That Sinful Brown Bar of Chocolate

    John Cadbury owned a cocoa factory in Brimingham’s Bridge Street in the mid-19th century. John had two sons George and Richard Cadbury. The factory was in the decline in 1861. It was making losses. The raw-material cocoa was controlled by 40 confectionery traders. The brothers introduced 4000 pounds inherited from their mother to restore the factory’s health. They also introduced a cocoa drink. The chocolate was made accidently when cocoa powder was mixed with cocoa fat and sugar to make a rich creamy paste which was moulded and set. A rival firm Fry & Sons  introduced mint chocolates. Cadbury was suffering. George travelled to Netherlands and bought new cocoa press that the Dutch used to make a smoother chocolate. Cadbury’s drink was promoted on the basis of its purity. By 1868, the campaign gained momentum. They improved packaging of the chocolates. All this worked. The business flourished for nearly 50 years.

    The history is given in a book Chocolate Wars penned by Deborah Cadbury, daughter of the Cadbury family.

    Cadbury was valued at 5 billion pounds in 2000. Kraft Food of the US acquired it in 2010. The combined business stands at 37 billion pounds.

    The sinful brown bar of Cadbury has survived.