Theater Profits

Does anyone know how much theater owners pull in? I know they're basically candy stores that show movies, but does anyone have any relative figures?

You're kidding me. There's no sign restricting age, no one at any theater has ever questioned my purchase, and the Kid's Fun Pack is the only way to save money. For $4.50 you get popcorn, soda, and candy. Separately, they're about $10.00 or more. Wreck my fun, will ya? You old spoilsport, you.

John

John,

Actually, they're not even supposed to sell you the Kid's Combo, but whatever. ;)

Eddie

Dang, Eddie, now you're making me feel bad about only going to bargain matinees and ordering the cheapie Kid's Fun Pack for popcorn and soda.

John

Ranjan,

Sorry about bringing up my past experience as well as my schooling...I had a bad headache and was a foul mood. Please forgive me. :)

As for "Spider-man 2"...again, you used a big movie, which would be an exception rather than a norm. Movie theatres agree to unfavorable terms for big movies because big movies attract people to theatres, which means more concessions sales. Also, when big movies sell out, people buy tickets to see other movies. However, when a 20-screen theatre has four screens of "Spider-man 2" and three screens of "Harry Potter 3", that still leaves the theatre with 13 screens. Some movies have really long legs (i.e. "My Big Fat Greek Wedding", "The Others", etc.), and movie theatres get about as much money as distributors after the movies end their run.

This, of course, has nothing to do with profits. Literally every movie is shown at a loss because it costs more in electricity, maintenance, salaries, etc. to show a movie than it does to charge people only $10 for a ticket. The only way for a theatre to turn a profit is to charge $20-$30 for a ticket or to charge exhorbitant rates for food. If you think about it, movie theatres are actually paying movie studios the right to show movies!!! :o

Eddie

Big movies is just an example they used. However, the article clearly indicates the norm on how the profits are shared. If for few weeks studios take 80-90% of the gross, then tell me in simple mathematics how can they still make 40-50% in few weeks. Money earned by a movie will drop with every week. I am not disputing your knowledge but 40-50% figure does not add up well :). For example, if Spider-man 2 made 375million from 3000 theaters, which means that studios gave away about 100Million + to theaters. No way.! The 40-50% figure it too high!!

Also you don't have to tell me your degree etc etc.. I trust your statements:)
--Ranjan.

Did u read the article?

Ranjan,

Yes, some studios take out 80% to 90% during the first two weeks, but the longer a movie plays, the more movie theatres get. This eventually yields a 40% to 50% split between the studios and the theatres.

Trust me--I used to work in a movie theatre, I've interned with a major movie studio, I'm an M.A. Cinema Studies candidate, etc.

Eddie

Ranjan,

Yes.

Bear in mind that CNN is reporting about really big releases, which account for perhaps 10% of all movies shown in theatres. The terms are much more in the theatres' favor for most movies, even though movies are essentially shown at a loss from the theatres' perspectives.

Eddie

Eddie,

40-50 % is way too much. Studios take about 80-90% of the gross in the initial weeks. Longer the movie stays better for theater owners. Infact theater makes profit by selling soda, popcorn etc. Check this article at cnn-
- EXTERNAL LINK -

--Ranjan.