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 Interesting read on how Studios and Theaters split ticket $$ 
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Post Interesting read on how Studios and Theaters split ticket $$
"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, said Steven Krams, president of International Cinema Equipment Co." -- http://www.money.cnn.com/2002/03/08/smb ... /q_movies/

So a movie like Polar Express that opens to a lackluster 23m and keeps great week to week holds, isnt really helping the studios, its helping the theaters.

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Mon Apr 25, 2005 11:53 pm
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Post Re: Interesting read on how Studios and Theaters split ticke
Killuminati510 wrote:
"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, said Steven Krams, president of International Cinema Equipment Co." -- http://www.money.cnn.com/2002/03/08/smb ... /q_movies/

So a movie like Polar Express that opens to a lackluster 23m and keeps great week to week holds, isnt really helping the studios, its helping the theaters.


I think that is the same link that I posted at BOM about 2 1/2 years ago. :lol: Standard contracts between studios and theaters are for 4 weeks. The bigger franchises like Star Wars will be able to cut a better deal than your average fare, but it's not until after that first contract is up that theaters start making some money. This is a big reason why studios are all for frontloading and pushing quicker DVD releases.

This is also the reason that concession prices are so high, as it's the only way for theater owners to really make good profits.


Tue Apr 26, 2005 12:14 am
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Post Re: Interesting read on how Studios and Theaters split ticke
Maverikk wrote:
Killuminati510 wrote:
"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, said Steven Krams, president of International Cinema Equipment Co." -- http://www.money.cnn.com/2002/03/08/smb ... /q_movies/

So a movie like Polar Express that opens to a lackluster 23m and keeps great week to week holds, isnt really helping the studios, its helping the theaters.


I think that is the same link that I posted at BOM about 2 1/2 years ago. :lol: Standard contracts between studios and theaters are for 4 weeks. The bigger franchises like Star Wars will be able to cut a better deal than your average fare, but it's not until after that first contract is up that theaters start making some money. This is a big reason why studios are all for frontloading and pushing quicker DVD releases.

This is also the reason that concession prices are so high, as it's the only way for theater owners to really make good profits.


That's interesting and also maybe why alot of theaters don't make a big deal about stopping people sneaking into movies. The % of money that they are losing is pretty small.

And if the people are in the theaters longer and they buy more at the concession stands - the theater is probably coming out ahead.

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I have a theater near me with about 12 movies playing that only rip the tickets at the front gate and then there are no theater people inside.


Tue Apr 26, 2005 12:28 am
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I know Cinema owners and they made a pretty bad deal with movies like SW at least for ticket sale money. But it brings people into your cinema and you can sell food stuff etc....Which brings the money. And huge movies like SW bring people into cinema that dont go so often...and when they are there they think "Why not go into another movie next week. Cinema isnt that bad". So huge movies have bevcome more and more a marketing thing as well.

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Tue Apr 26, 2005 7:21 am
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i thought everyone actually knew this already.

Quote:
So a movie like Polar Express that opens to a lackluster 23m and keeps great week to week holds, isnt really helping the studios, its helping the theaters.


Not so; films that have good legs; films which the studio KNOWS are going to have good legs, usually have a different negotiation there; to ensure it stays in theaters but also provides theaters with a hefty sum in later weeks.

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Tue Apr 26, 2005 8:38 am
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