Thinking about openining a local movie theatre
and wanted to know what kind of profit margins
I was looking at PER screening and/or per ticket
on both domestically-realeased 'major motion
pictures', as we as indies and, more specifically,
OLDER (aka previously released" major motion film
(ie: from year's past)... How much do distributors
get? how much goes to the box office? how much in
royalties (if applicable)? etc... any info would
help. Thanks!
Answer :
The average won't really help you as most distribution deals are made with national theatre chains. That said, studio pictures tend to split the box office 70/30 (70% distributor, 30% exhibitor) while major event pictures (like Star Wars Ep. III) keeping up in the low to mid eighties. Independent Films have significantly less leverage and end up with closer to 50/50 deals with the exhibitors. Exhibitors get even bigger cuts on revived classics where they just pay a flat fee (say $500) to show cult classics (usually at midnight) and then keep the box office.
Exhibitors keep 100% of concessions.
The Theatre business is a horrible business to be getting into at this point though. The transition to home entertainment is forcing theatres out of business. The big boys have it down to a super-efficient science that it is nearly impossible for a single house to compete.
If you are going into the business you will definitely need some kind of a super-sweet gimmick, like "Tarantino personally curates all movies" or something like that. That or a liquor license.
Email me if you want more info.
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