The Difference between Gross and Nett Box Office Collection

Box Office Collection Jargons have always been confusing and often our readers wonder what is the difference between them. Filmmakers often use Box Office Collection to signify the Gross collection, which however is much much more than what the Filmmakers or Distributors receive at the end of the day. We explain some of the Terms here.

Gross Box Office Collection: The Total Amount collected through Ticket Sales on the counters of Cinemas or Online during a given time period.

Nett Box Office Collection: It is Gross Box Office Collection minus Taxes imposed by Government. This includes Service Tax, Entertainment Tax etc. The Entertainment Tax varies from 30% to 60% in various states of India. The Highest Entertainment Tax (60%) is charged in Uttar Pradesh.

In some cases, where a movie is made tax free or the tax is subsided, the Nett Collection can be highly impressive, however the same may not be true for Gross Collection.

Distributor Share: The Distributor Share is Nett Box Office Collection minus Rental charged by Theatres or Cinema Houses. These the theatre rentals vary with the duration of Movies. According to Boxofficeindia.com, Multiplexes give 50% in week one, 42.5% in week two, 37.5% in week three and 30% thereafter to the distributor.

However, it is comparatively high (80%-90%) for Single screens Cinemas. The reason is a different Business Model. Single Screens are very selective in choosing the movies and they mainly exhibit Big Movies, where Business probability higher.

Box Office: A box office is a place where tickets are sold to the public for admission to an event. However this term is frequently used, especially in the context of the film industry, as a synonym for the amount of business a particular Movie receives.

Weekly box office Collection: It is the collection taken to be from Friday through Thursday to allow for the fact that most movies are released on a Friday. It could be nett or gross.

Weekend box office Collection: It is defined as the box office receipts from the Release Friday through Sunday. It is also known as Opening Weekend Collection and could be reported in nett or gross terms.