How is Movie Global Revenue Calculated: Whenever a big budget film is released in theatres, the biggest discussion regarding its earnings is about its 'worldwide collection'. If a film earned Rs 100 crore, Rs 500 crore or Rs 1000 crore, this figure shows its performance at the box office. But have you ever wondered that the earnings of which countries are added to this 'Worldwide Collection'? Is the income from tickets sold in every country of the world included in this? At the same time, how this collection is calculated by adding the earnings of India and abroad. Let us understand the complete mathematics of 'Worldwide Collection' here in simple language.
What is Worldwide Collection?
'Worldwide Box Office Collection' means the total collection of a film from theaters around the world. In the case of Indian films, it is understood in two parts. The first is the film's earnings in India and the second is the earnings outside India, which is called overseas collection. After adding these two, the worldwide gross collection of the film comes out.
That means, if a film makes a gross collection of Rs 500 crore in India and earns Rs 300 crore from abroad, then its worldwide gross collection will be Rs 800 crore. However, due to the method of calculation and currency conversion, slight differences may be seen in different trade reports.
Only ticket earnings are included
The most important thing to understand here is that the worldwide box office collection and the total earning of the film are not the same thing. Worldwide box office includes the money received from selling tickets in theatres. How much money the film earned from selling digital rights on the OTT platform, how much satellite rights were sold or how much money it earned from music rights, all this is not added to the box office collection.
That means, if a film earned Rs 500 crore from theaters and later its OTT rights were sold for Rs 100 crore, then Rs 100 crore of OTT will not be added to the worldwide box office. Box office figures are based on theatrical earnings only.
What is the difference between gross and net collection?
To understand 'worldwide collection', it is important to understand gross and net collection also. When a viewer buys a ticket in a cinema hall, tax is also included in the ticket price. The total earning from tickets is called gross collection. Net collection is made after removing taxes and items. During trade reporting in India, there is a lot of talk about the net collection at the domestic box office. Whereas worldwide figures are generally told according to gross collections. The reason for this is that the tax system and rules of ticket sale are different in different countries. Therefore, the gross figure is more accurate to show the earnings of the entire world by adding them together.
Which countries are included in the Worldwide Collection?
Now the biggest question comes that which countries are included in the overseas collection. Let us tell you that there is no small or fixed group of this. The theatrical revenue from the markets where the film is released in theaters and tickets are sold are included in its global box office figures. America and Canada are big overseas markets for Indian films. Due to the large population of people of Indian roots here, Hindi, Tamil, Telugu and other Indian films get good to good response. Similarly, United Kingdom is also an important market for Indian films.
Big income also comes from Gulf countries
Gulf market is also included in the overseas business of Indian films. Indian films have a large audience in countries like UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain. Especially in UAE, there is a lot of interest for Bollywood and Indian films. There are good ticket sales for Bollywood and South Indian films in big cities like Dubai and Abu Dhabi. Theatrical earnings from these countries also add to the film's overseas collection.
Many countries of Europe are included
Apart from the United Kingdom, Indian films are also released in European countries like Germany, France, Netherlands and Switzerland. In the country where a film is released in theaters, the money received from ticket sales forms part of its overseas business. The earning level may be different in different countries depending on the language of the film, star cast and the audience present there. That's why the overseas breakup of every film is not the same.
China, Japan and Asian countries earn money
In Asia, markets like China, Japan, South Korea and Taiwan are also important for films. If an Indian film gets permission to release in China and earns money from theaters there, then that amount is included in its international box office. Aamir Khan's films like 'Dangal' and 'Secret Superstar' got great response in China. Similarly, some Indian films have performed well in Japan also. However, not every Indian film is released in all these countries. Therefore, only those countries where the film was released are included in the worldwide collection of a film.
South-East Asia and Australia are also important
Indian films are also released in South-East Asian countries like Malaysia, Singapore, Indonesia, Thailand and Philippines. Especially Tamil and Telugu films are liked in countries like Malaysia and Singapore. Apart from this, Indian films also have a strong market in Australia and New Zealand. Indian films get good response in cities like Sydney, Melbourne and Auckland. Ticket sales from these countries also form part of the overseas collection.
Do the earnings of every country in the world add up?
The answer to this question will have to be understood a little carefully. Worldwide collection does not mean that some income from every country of the world will definitely be included. There is no question of box office collection coming from the country where the film was not released. Similarly, if a film is released in a country but there are very few shows there or very few tickets are sold, then the contribution of that market will also be less. Therefore, 'Worldwide' means theatrical earnings all over the world, not the earnings of every country in the world.
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