You will often hear that .....
This film has taken so many hundred crore !
Or so many lakhs of rupees have been spent in shooting one of these scenes !
Or the costs of costume and so on have reached the billions of crores !
It all sounds like listening to where it comes from, all the money that is in the movies?
Earnings happen after the release of the film, then who are the people who make all these money and what is the guarantee of the money ?
Any movie either arrives first to the director or producer.
Producers are those people whose work is to finance the films.
Now it can be done in two ways, either a director has to make a film on a story and he approaches the producer and then asks him to sponce the film.
Or the producers liked a story and invests money by asking them to direct them to their favorite director. There are also other sponsors who take publicity and get publicity from the film. Many times, product placement is also done in the movie for the sponsorship, which is already done in the movie.
Selling a movie to the distributors removes a part of it.
There is also some money by selling its satellite rights. Many actors working in movies, if they have a big name, they take their share in profits instead of taking the fees.
In this way these crores deal is final.