This.
However for box office performance, it's favourable if party making profit is Distributor.
In Bollywood accounting, a producer may be making huge table profit by selling distribution & ancillaries rights. But if Distributor fails to make money, the film is given FLOP verdict.
e.g. a film Tubelight in 2017, cost ₹88cr to make & P&A but before actor remurenations who was producer himself. The market value of actor is around ₹80cr range.
The film recovered the cost from huge ancillaries rights at ₹130cr range. The Overseas distribution rights were sold at ₹50cr while India rights were sold at ₹138cr.
The Distributor Share of film was mere ₹55cr in India & ₹20cr Overseas with film losing ₹115cr Approx money to Distributor while Producer made ₹200cr plus. The film is termed as one of the biggest Flops in Bollywood.