There are many ways to distribute the films but most of the producers prefer Minimum Guarantee (MG) system. Under this system the producer would get a minimum amount and if the film collects more than the amount, it would be shared by both distributors and producer. If the film collects below the amount the producer is not liable to (re)pay the amount.
The other system is called ‘distribution’, under which the producer is liable to pay the difference if the film collects less than the minimum amount paid by the distributors. Many producers do not opt for this system, as it involves some risk, while the MG system guarantees a minimum income.
Prakash Raj, however, has dared to go for the ‘distribution’ system for his ‘Vellithirai’. He has opted for this despite the fact that distributors had come forward to take the film on MG basis.
Why Prakash Raj should take such a risk is the question raised by many in the industry. Is it a sign of his concern towards the distributors or a sign of the confidence on his product?
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