Most people are unaware that movie theatres make their money primarily off their concession revenue. The box office revenue goes to the studios making the pictures leaving the theatres to sell popcorn and drinks to make a profit.
How much could the studios possibly take you might ask?
In the first few weeks of a film's theatre release the studios collect 90% of the box office. This deal is gradually getting worse for the theatres. Ten years ago it was 70%.
Lets check out some of the numbers.
OK! Now lets say this average 8 screen theatre does a good business of 3200 people on a great movie going Saturday in June. Now some of the theatres films are more than a few weeks old and the studios have loosened there grip on them a little. They are giving up on average about 84% of their box office total. If the average ticket price is $6.oo assuming they have matinee prices, children and senior discounts then you must admit that $6.oo is a fair average ticket price.
OK! So 6 dollars x 3200 people is $19,200.oo, 84% of $19,200.oo is $16,128.oo for the studio and $3,072.oo left over for the movie theatre. The movie theatre is getting less than one dollar per person simply because they are showing the most recent films. This is why the smaller theatres you used to go to now show what we call second run product. Second run product is about as exciting as it sounds. Second run simply refers to films that have already been released and finished there run with the big distributors. Needless to say the dollar houses don't last long and you find yourself driving by one day and remembering when you used to go there. In order to attract customers some of the smaller theatres have had to switch to art films and more off the wall type movies that you would not see at your local megaplexodeon.
No matter what type of films they are showing these great old movie houses need your patronage before they become a place you drive past and remember when you had the privilege to attend a show there. What are you waiting for?
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