Local movie Mat Kilau has been the talk of the town lately not only for the mastermind behind it but also for how the movie managed to gross RM12 million in just four days!
As of last night (June 28), TGV Cinemas announced that Mat Kilau has grossed RM18 million since its release last Thursday (June 23), making it one of the highest-grossing local movies in its opening week. The production of the movie has a budget of RM8 million and looking at how much the movie currently earns, most of us would have thought that its production costs have been recouped.
However, local actor and singer, Mawi, recently revealed that the movie has yet to break even. In fact, he said that,
“The movie needs to gross about RM20 million during its first week of release to break even.”
Taxes and deals with theatres
Mawi then explained that the money gained has to go through some places before they even reach the break-even point. So, here’s where the money will flow through first.
- Entertainment tax
Just like any other local movie, 25% of the money gained has to be forked out for the entertainment tax. For instance, if the movie grosses RM1 million, then an amount of RM250,000 has to be paid to the government.
- 50/50 split
Other than the tax, the money also will be split as it is a deal made between the theatres and producers of the movie.
“After paying 25% of the taxes, we’ll have to pay another 50% of the money gained from the movie tickets to theatres,” he added.
The film has currently made RM 18 million across the country. Therefore, Mat Kilau has not yet reached its RM8 million budget after the entertainment tax of 25% and the 50/50 split with the theatres are subtracted.
Additionally, the split does not end in the first week.
“On the following week, the theaters will take more than 50% of what the movie makes,” Mawi said.
The splitting will take place until the movie is taken down from the movie schedule.
Mat Kilau is inspired by the epic Malaysian historical figure, Mat Kilau, who had fought against the British colonists in Pahang before independence. If you are interested to watch the movie, do get your tickets quick as they are selling fast, even on weekdays!
Also read: Do We Really Need Cut Scenes Or Censorship In Movies For 18 & Above, Like Scream?
