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Movie Theaters?? (OT)


William A Chapman Jr
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Dose the studio get a percentage of the box office sales

 

I believe with new releases this is how it's done. Theatres, by the way, get a very low percentage. Which is why, if your local theatre is struggling, you should purchase some concessions more often. That's really where they make the most money.

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Here you go. A film booker leases a movie to a theater for a set period of weeks. The percentage of ticket sales that the studio takes decreases on each week that a movie is in the theater. If the screening was arranged by an independent middleman, he also takes a slice. So the movie has to pull in sizeable audiences for several weeks in order for theater owners to make any serious profits. During the film's opening week, the studio might take 70 to 80 percent of gross box office sales. By the fifth or sixth week, the percentage the studio takes will likely shrink to about 35 percent. If you've got a blockbuster like Titanic or The Lord of the Rings, with audiences that keep streaming in for weeks, everybody's happy -- especially theater owners.

 

Studios also pay theaters to show trailers. But they pay for them after the fact, based on the number of people who saw them. Studios send a couple of new trailers every week and they send new commercials. Theaters call in the numbers every night to the film companies, and they give you 'x-amount' per person.

 

And then you have the concessions. Popcorn yields more than 90 cents of profit on every dollar of popcorn sold.

 

http://www.slate.com/id/2133612/

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I believe the advent of digital projection is going to change the theatrical situation. Before digital all trailers and commercials had to be on 35mm. This means only big companies like Coke could afford 35mm prints. Now you are going to see more local ads which mean more revenue for the theaters. Also because more theaters have digital projection smaller independent films can get theatrical releases with out having to absorb the cost of making a 35mm print.

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Which is why they prefer films for the 15 to 25 age group, older people tend not to buy so much popcorn.

 

A cinema manager once told me that popcorn is most profitable product on the planet, you buy the seeds for pence and sell the end product for pounds...

Edited by Andy_Alderslade
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