Movie Talks Archives

Posted by: Badbird at July 17, 2008, 5:40 pm

Topic: How much do theaters make? Forum: JoBlo

That stuff about not making money off tickets is largely a myth. Yes, we make money at the box office, but not all of it. We split the gross with the movie studios. At first it's usually 50/50. Sometimes even 60/40 (Them/Us) on big event movies, but not always. Then for every week the movie plays, the percentage gets better in our favor. Eventually we make 70% off the ticket sales. So it's in a movie theater's best interest for a movie to have good word of mouth and longevity. It's in the studio's best interest to open up huge and fall fast so they can maximize their grosses. Movie theaters make a bulk of profit on food. But the problem they've run into is that these huge megaplexes cost a lot of money to operate. You have to have huge staffs, huge heating/electric bills, and the huge buildings equal huge rent. The industry would be a lot healthier (and cheaper) if they hadn't ballooned in the 90s with a 20-plex on every corner. If it was mostly 6 and 8 plexes, the industry would be completely different.

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