Increasing ticket prices are often seen as a pain point for audience members but how much of that money actually makes it to the producer who has made that film? Not as much as you think. Shobu Yarlagadda, the producer of the Baahubali franchise, has broken down the journey of a movie ticket from the theatre counter to the filmmaker’s bank account. He recently produced Fahadh Faasil’s Don’t Trouble The Trouble.Speaking at a masterclass session with Student Tribe, Shobu Yarlagadda explained the economics of Rs 100 crore box office collection, and how much of Rs 100 crore goes into a producer’s pocket.Also Read: Made for Rs 25 cr, Nivin Pauly-Mamitha Baiju’s Bethlehem Kudumba Unit earns 13x its budgetWhat is gross box office collection?Start with Rs 100, if that is what you pay for your ticket at a multiplex. Here is what happens to it.Shobu offered his explanation and said that Rs 18 is the GST, as 18 percent is charged on movie tickets priced above Rs 100. Shobu explained that the remaning Rs 82 is “net collection” but after checking with a few trade analysts, SCREEN found that this amount is called “gross collection.” So when trade analysts report a film’s gross box office, this is the number they are referring to, the amount left after GST is deducted.Of that Rs 82, the multiplex takes its share. Chains like PVR and INOX operate on a revenue-sharing model with the distributor. In the first week, the split is roughly 50-50, though the exact percentage varies between 50 and 55 percent depending on the film and the deal. So the multiplex keeps approximately Rs 41, and the remaining Rs 41 goes to the distributor.ALSO READ | Shriya Saran ditched family event for SS Rajamouli’s RRR: ‘Leave wedding, run to Hyderabad’Story continues below this adHow is net box office calculated?But the distributor is not the producer. The distributor is a middleman who buys or leases the rights to release the film in a specific territory. For taking on that responsibility, the distributor charges a commission. This varies from 5 percent to as high as 20 percent, depending on whether the distributor invested advance money and the specific terms negotiated between producer and distributor. Shobu Yarlagadda used an average of 10 percent for illustration.After the distributor’s 10 percent commission is deducted from the Rs 41, the producer receives approximately Rs 35 to Rs 36. According to Shobu Yarlagadda, out of every Rs 100 a moviegoer spends on a ticket, the person who made the film earns approximately Rs 35.This amount of Rs 35 is the net box office collection that’s often reported by trade analysts.OTTs fund the project, no burden on producerShobu also explained how the economics change when a film or series is made directly for a streaming platform. Instead of the producer taking on the financial risk and hoping to recover costs through ticket sales, the OTT platform funds the entire project upfront. The platform pays for development, pre-production and production. “If it is costing Rs 1 crore, they’ll pay that, and then you’ll get 10 or 15 percent extra for your cost,” Shobu Yarlagadda explained. “So they cover all cost plus a certain percentage.”Story continues below this adThe advantage of this model is that the producer’s risk is minimal. As long as the production is completed within the agreed budget, the producer is guaranteed their fee regardless of whether the show is watched by 10 million people or 10 thousand.“Your risk is limited. But your upside, let’s say it did very well, is nothing,” Shobu Yarlagadda said. “Because that goes to the platform. You’ll get only the 10 or 15 percent.”