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10th January 2015, 12:56 AM
#11
Senior Member
Seasoned Hubber

Originally Posted by
Saai
ada raamaa!
This line will suit only if the risk-taker is proportionately rewarded for his risk. In any usual business models, the higher the risk , higher the profits. In this case, the producers have shifted the risks to distributors and doesn't proportionately reward them. Thats why they are greedy..
I have been reading past few pages of the discussion and seen people make sweeping statement.
Since i do not know the nit-ty-gritty of contractual agreements, it is unfair/stupid to make generalized conclusion. it looks to me the pay off will be asymmetrical since the local distributor takes only 10% of profit as he claims then we got assume he takes less risk...If he still takes 100% risk and 10% profit, then the hidden agenda in the contractual agreement is completely different than making profit. As many distributors / theatre owners thinks releasing rajinkanth movie is one of the proven/time tested path to establish themselves in the industry. So might had a long term strategic plan to be in the industry....
In theory there is no difference between theory and practice; in practice there is
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10th January 2015 12:56 AM
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