Habitually movies are distributed under
the MG method in which case the producer
will sell the rights for a fixed sum to
the distributor. If the movie manages to
garner more profits than what it was sold
for, the surplus will be equally distributed
between the producer and the distributor.
In this case, even if the movie turns out
be a dud, the producer will not be held
responsible for the losses.
On the other hand distribution method calls
for another risky method of doing business.
The producer ends up paying to the distributor
if the movie falls flat at the box office,
which exactly what Prakashraj has opted
for. We are sure he has a reason!
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