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How to Start a Movie TheaterStarting a Movie TheaterSummary: This article is intended for those who have their sights set on starting their own movie theater. Learn some pointers that may come useful as you go about starting your own cinema movie theater. The number of independent theatre owners is growing.
This is because when done properly, theater business can be a lucrative source of income. Aside from the money you’ll be earning, you also get to enjoy catering to your own niche crowd that shares the same interest in the type of films you love. Cinema malls are grouped according to the type of movie they feature. Movie theaters that run mainstream films from big film companies and distributors coinciding with the release date are deemed as first-run theaters. Second run theaters on the other hand, as the name implies, feature movies that have already been shown in first run theaters. Ticket prices for theaters that fall under this category are much cheaper. Then there the Art House theater otherwise known as the repertory theater. This category typically features alternative art films, independent films, or second run classic films. If you are interested in opening your own movie theater, the first thing you should do is understand the nature of this type of business. There are several resources that can provide you with valuable startup information. Some suggested reading materials are as follows: (1) Encyclopedia of Exhibition authored by the National Association of Theater Owners (NATO). This group also maintains a website where pertinent and useful information about the industry is delineated. Examples of such are box office statistics, equipment suppliers, index of concessionaires, theater employment and more can be found. (2) The Movie Business Book by Jason Squire tackles a wide variety of topics and can be used as a reference handbook. Don’t worry about competing with the big players. Your selling point will come from your facility to cater to a niche crowd. Getting the rights to show first run movies can be a bit of a challenge, not to mention pricey! What sets independent theater owners apart is the specialty films they feature. You can choose to show films from a variety of genres or show art films, independent films etc. The key is to choose the type of movies that you are interested in and familiar with. But at the same time, you also need to meet the preference of your target market. These two steps should go hand in hand. As an independent theater owner, you can afford to be different and not conform to how the big players run their movie theaters. For example, you may replace the typical row seats found in theaters and use tables and chairs instead. This will give your patrons a cozier environment to enjoy the cinema. As a way to entice moviegoers, you can provide discounts to big groups of people. This is usually is the case when they gather for a corporate event or for a party. In ticket pricing, you may offer discount rates during off-peak hours and/or days. (Trivia: It is said that Tuesday is the slowest day of the week as far the movie business is concerned.) You can also offer discounts to students and senior citizens. Still another option is presenting your customers with movie passes that allows unlimited entrance. 80 Responses to "How to Start a Movie Theater".
1. hannah on 4/11/2008
Hi i am a 11 year old girl in 5th grade. No i am not really starting a moive theater but in school we are doing a project on how to run your own business. and i chose a theater. 'cause i just live watching movies. your website helped me a lot.
2. Carlos on 4/14/2008
Your site was very informative. My situation is a little different and my questions were not able to be answered in this forum. I am in the service and currenlty deployed in Afganistan. My question is (shocking as it my sound) if i wanted to start a movie thearter business in afganistan how do i get the movies to play. There isn't any law here as far as I ordering DVD movies online and playing them in the thearter(that i know of). If a friend of mine starts the business and he is a local national and orders DVD movies online to show them in his theater could that be an issue? thanks
3. T on 4/18/2008
Very informative article. I'd love to start up a movie theather that shows classic films, but I am afraid of the costs of the rights to re-show these movies on a big screen.
4. michael on 4/23/2008
wow do I know you hannah? well anyway, I have the same reason as hannah (I think she's the hannah in my class...) and it really helped me. Thank you!
5. matt on 9/2/2008
To Carlos (above):
6. Meghan on 9/10/2008
this is weird i think all teachers have the same idea.
7. ish on 9/11/2008
carlos and matt: it would be illegal, I'm almost certain even in Afghanistan. even if it isn't corporate lawyers (and they have more than you) would find a way to screw you. I had a similar idea, i'm remiss to share it... but don't charge for tickets, it's a way to boost sales. of course the entire business couldn't be built on that, more of a promo tool.
8. Sandra on 10/17/2008
My bro and I are planning to open a Art House Theatre in TEXAS, and this was very helpful...
9. llama man on 11/13/2008
your article helped me achieve new educational heights.
10. llama man on 11/13/2008
THANK U
11. Dan Zee on 11/17/2008
I think this article is a little simplistic because independent theaters are shutting down all the time. The big chains get all the first-run movies and by the time you get them as a second-run feature, they've had all the profit drained from them. Independent movies attract a high-brow clientele, but without marketing, no one will show up to see them. The theater business is actually the food business, but that's where all the profit is made, so theater managers are better off if they have a food background than if they're simply fans of movies.
12. Cindy tumeka on 11/20/2008
I am a 20 year old female from south africa. i would like to own theatre what i'd want to know is how do i get the movies. i'd want to the first run movies. please contact me on tumekaislands@yahoo.com
13. matidze given on 12/20/2008
i am a 23 year old male from south africa. what i'd want to know is where i can get financial assistance through this little business. please contact me on ugeam@thepub.co.za
14. Guest on 1/8/2009 11:19:55 AM
i love your work althuogh i started my own movie theater 1st of january 2009, i still find your information useful
15. Jamie on 1/11/2009 2:52:17 PM
How do you find a film booking agent?
16. C.E.Sampel on 1/15/2009 9:12:06 AM
Nice to here that there is still people wanting to run or own theaters. My self of course I tried and my success was not as grand as I wanted it to be. For starters try to find an existing theater to run or own building and buying you looking at (from my own personal experience) 1.3 million. That's from the land to the building and the equipment at new prices. Now you may think that you would earn that back in no time but with taxes, mortgagee payment, equipment rental, and movie rental fees you looking and some odd thousands of dollars a month. Now since I looked over and research every thing I could my business still sank small town not enough revenue. Since all of my stuff was less than a year old new I sold every thing for most of the cost that is was bought for. The building I took a hit on until I started an auction house in it made my money back to pay my cost off and sold the building. I came out of all of the with the fine point of location, location, location. I now live in the city and trying to start another business in Indoor rock climbing. I am still dealing with the city and finding the right building and location is no problem I have plenty of option in a big city. Just remember all starting what you love as a hobby is great in all but if you do not know all the in and out of placement of your business then you probably not going to succeed.
17. amanda on 1/15/2009 4:27:54 PM
I don't think it is morally wrong what he wants to do in Afganistan. I think its really cool. and this article helped me a lot. thanks
18. Maximo Liriano on 1/19/2009 11:09:27 AM
I want to open a theater to show only christian movies. They must be Spanish spoken or subtitled in this language. Where can I find these films?
19. Dilip Jadhav on 1/20/2009 4:57:40 AM
I am a 30 year old male from India. Working as a software Engg but now I'd love to start a movie theater that shows Indian movies. what i'd want to know is where i can get financial assistance for this little business. please contact me at jadhavdilips@gmail.com Thanks, Dilip.
20. Guest on 1/22/2009 11:11:04 PM
I WANT TO KNOW WHAT I NEED TO DO TO START A MOVIE THEATHER IN A SMALL TOWN.
21. kelly halligan on 1/31/2009 10:12:28 PM
I would like any info on how to start a theatre in a small rural town. my idea is to start very small, and grow from there. Playing current DVD's, but having a large screen and a social exerience. Any advice would be great and possible income from ticket sales and food in a town with population of 4k.
22. Ilean Monterrubio on 2/4/2009 8:12:07 PM
yeah i been thinking of opening a small independent theater, i currently am going to school for engineering, but i love movies and independent movies are one of my interests. here in houston there are some independent theater and its something that is a need.
23. obert muzurura on 2/16/2009 4:09:53 AM
I saw your article is interesting and thus I am also interested in starting a Movie Theater in a small town in Zimbabwe and need information on how I could do it and start a progressive Movie Theater. I have the passion into doing it but I lake adequate knowledge on how to start it since there is no one in the area offering such kind of business. I will be pleased by your cooperation.
24. Bhu on 2/16/2009 12:14:44 PM
yes your article is informative, but my problem is that i wan to know how i can open the movie theatre and what legal process i need to follow from licence to taking right of showing the movie, could you please explain it.
25. Kamogelo Blessing on 2/18/2009 7:14:47 AM
Hi! This article is very important to me. I want to own an independent christian movie theatre. Can u please help me on how to achieve copyright license for showing christian movies in public. Thank you very much
26. S K. K on 2/18/2009 10:42:39 AM
I want to start my own movie theater(single screen theater in NAGPUR), it's my desire. That is why i need your help, so please give me a all startup information about theater, financial assistance and your own valuable ideas, Thank you, my e-mail, sameerkuduple@yahoo.co.in
27. Kidada on 2/22/2009 3:54:28 PM
I am interested in getting more information on how to start my own dollar movie theatre. Information such as possible financial assistance, start-up does and don'ts, legal process and licenses needed will be very helpful. Thanks in advance.
28. sai krishna on 2/23/2009 7:00:16 AM
Send me the complete mete rial for building a theatre from start to end.
29. Whackymac on 2/23/2009 2:23:40 PM
Well, it is certainly inspiring, to see that there are so many folks out there that share the same aspirations & Loves as me. I am currently seeking out info in starting my own Art/First run theater out here in Laredo, Tx. A few of the possibilities that I have considered to aid in obtaining a profit are as follows: 1st I am not sure if any of ya'll have ever been to the alamo draft house in Austin, Tx. But it is really great they feature both 2nd Run films, First run films, as well as indies. At times they have also put on live theater events as well. This idea helps them to appeal to all types of Markets. (Apparently it is something that has proven successful for the owners because there are several Alamo Draft Houses in Austin). 2nd, although they do offer the traditional options of popcorn, candies & Sodas, They also offer other types of food. Here's how it goes. First you purchase your ticket from the box office, Next you arrive at your chosen showroom/screenroom, Then, you are seated and greeted by a waiter or two who ask for your choice of beverage, appetizer & meal. I.e. burgers, wings, pizzas, nachos, icecream, etc... Beverages include items such as: Domestic Beer, Import beer, wines, mixed spirits, as well as non alcoholic bevs. for the kiddos. in the event that you need to order something else during the course of your movie, then you are provided with a small sheet of paper and a pen on which to write down what you need. Lastly, during the last 30 min. of your movie, you are provided the bill for your concessions much as one would come to expect from dining out at a restaurant. My Third observation that I noted, was that at times though they do offer movie camps during the summers, as well as other packages, they also did offer classes such as acting classes, screen writing classes, film and production workshops etc... Although, I am not exactly sure as to how they go about doing this, I do hypothesize that the teachers would have to be deemed credible, and that these teachers would probably have to rent the show room/ stage room from the theater and then charge their own prices for the classes. At least that is how I might go about such an endeavor. Any how the combination of such ideas under one roof simultaneously should most likely result in profits. And with Laredo having a population of 300 plus thousand it ought to make for quite an idea. My thing is though where do I go about finding investors? HELP?
30. Hudson on 2/25/2009 2:54:50 PM
I was wondering how to start up a theatre for movies that are out on dvd but played on the big screen. is this legal and what do i need to do to make it so, also any info on financial assistance in colorado... please email hudsonian2006@aol.com
31. John on 2/26/2009 11:38:18 AM
Has anyone figured the legal aspects of screening DVDs for profit? Naturally, it'd be illegal to do it without some sort of agreement in place. But what about specifics?
32. Lens de great on 3/4/2009 10:22:05 PM
I am so aspired on the information i got, i want really want more information on financial aspect, the amount it will cost me to startup this business.
33. Billy on 3/11/2009 4:26:39 PM
I really like this article. Can you please send me more information? I would like to start this project ASAP. I love watching movies but hate the prices!! THANKS
34. steven on 3/18/2009 1:16:41 PM
i am doing a project for an economic class... would it be possible to get some figures of how much an average movie price is... i am meaning as if i the movie theater where to rent the movie.. thank you
35. Lacey on 4/3/2009 8:48:11 AM
I'm 14 and our school is doing a project and i have to find out how to start a movie theater. I'm in charge of the financial part. I'm sol
36. Guest on 4/5/2009 6:02:14 PM
Who could I contact to rent movies for a small theater? Who can I purchase the necessary equipment for the theater? Your help will be greatly appreciated.
37. Wes on 4/6/2009 5:35:19 PM
I am interested in opening a drive-in theater. I need information on where to start. We would need to start with second-run movies. Any help you can give me would be greatly appreciated.
38. Emmanuella on 4/9/2009 3:14:42 AM
Your site was very informative. I am interested in opening an outdoor old classical movie theater, like Family Classics, Shirley Temple, Robin Hood, etc... Who or where can I purchase the movies and equipment from.
39. Maggie and Jeff Spencer on 4/26/2009 2:07:35 PM
We are starting a driving range and mini golf with an indoor arcade and wanted to add a movie theater with this business.
40. Bob on 4/28/2009 2:43:24 PM
After starting a movie theater, who knows how does one go about purchasing film rights and what is the cost?
41. ravi on 4/30/2009 8:00:31 AM
please send me some tips on starting a movie theater in my city.
42. carina christmas on 5/7/2009 4:57:42 PM
Can you please pass along the info you have given others for starting an art house theater? And any help on finding film distributors would also be appreciated.
43. tmy on 5/12/2009 7:43:30 PM
Hello, I'm interested in starting a movie theater in my city. If anyone has any information please drop me a line.
44. Richard on 5/13/2009 8:00:52 AM
Hi I would like to start a movie theater business - could someone give me pointers on where to get films to show - legally? Email me @ :critical5@hotmail.co.uk Thanks
45. Prudence mashile on 5/14/2009 1:57:52 PM
Hey, I am 20 from south africa, i found this articles very informative. i love movies and would also like to start my own movie theater. I want to know where i can get financial assistance the legal procedures involved and where to rent this the DVD. Thank u. Please email me at Prudence.mashile@yahoo.com
46. richie jackson on 5/14/2009 9:59:48 PM
Hello everybody. I did start up "Nostalgic Theater" in a small community. I use only 16 mm films & only the rare, unique, & unusual. I started out by finding the right building, obtaining license, purchasing films, creating the theatre feel in the building, great concession goodies, old time music(40's), & so far it seems to be growing. I would encourage all of you to create something different & unique. Open early & play lots of great music. Encourage people to dance before the shows start. Nostalgia is a great way to bring community together. It's been fun. But you gotta stick to your guns...because it takes time for the word to get out...even with advertising. ENJOY. Richiej film&radio
47. Rupindersingh Gambhir on 5/19/2009 10:00:27 AM
I wanna start a movie theater with 2 or 4 screens. For this purpose do i have to get a license? if yes from where i should apply for it and what is the cost estimate for getting it. please reply
48. Tokoni Alek on 6/8/2009 4:50:21 PM
Hi, at first glance, this site has been helpful, but i would really like to have more and detailed information about opening a movie theater. if anyone can help, i would greatly appreciate it.
49. vukile manzi on 6/12/2009 4:43:19 AM
hi, my name is vukile, i live in south africa. i want to open a movie theater but now i don't know where to start can you tell the things i must do.
50. vukile manzi on 6/12/2009 4:56:17 AM
your advice gave me a big difference now.
51. JOSEPH KASIYA on 6/17/2009 8:43:30 AM
More tips on starting a movie theater
52. whitney on 6/19/2009 11:23:34 AM
i would like to know the process of ordering the films, please email me
53. Carol R on 6/22/2009 2:06:40 PM
Hi, I would like more information on how to rent the movies to show in a theater, where you obtain them from and prices. Thanks.
54. Monica E on 6/23/2009 10:58:34 AM
Hello, I am looking to open a movie theater in a small area but the area is steadily growing. People in the area have to drive at least 30 mins to 45 mins to a movie theater. If anyone could give me some advice in figuring this out, please send me an e-mail and let me know where I can start. Looking forward to hearing from someone.
55. Francis O on 6/27/2009 8:27:35 AM
Hi, I am 30 years old looking to start a chain of movie theaters in Nigeria. Could you tell me if it is possible to use DVDs to play movies in a theater or it has to be specifically movies shot on 40mm reel. emekabgt@hotmail.com
56. Del Morrison on 7/1/2009 12:04:17 AM
Hey everyone, if you are looking for any help or need some tips feel free to email me at morrison.del@gmail.com, Me and my Team are currently gathering funds and information on opening a Arts theater in BC, And have learned quite a bit of useful information, Your biggest cost is seating, considering when a place shuts down everything of value is taken (in some cases the sink's Taps)Anyways its all about gathering costs, and figuring out if your inflow of cash is gonna be = or greater than your expenses.
57. Keith on 7/4/2009 1:34:13 AM
I live in jamaica and where i live there is no theaters at the moment. i would love to start my own chain of theaters and i would really love if you sent me all the info for building a business like this from the ground up.
58. william burgess on 7/8/2009 10:13:12 AM
I want to open my open movie theater in a small town. I have the venue and the know how but do not know where the best place to go to rent the movies to show on the big screen. I know the things have changed a lot but if you could point me in the right direction. Thanks, William Burgess
59. James Houston on 7/10/2009 3:04:40 AM
I am interested in knowing what it would take to start a theater up in Barrow, Alaska. A small village of about 4 or 5 thousand people. it would sure turn a lot of the kids around from getting into trouble at an early age. a second run theater would sure do good up here. i appreciate any and all replies.
60. Joey on 7/24/2009 9:40:25 AM
HI.. I totally enjoyed everyone's comments and interests and share in your goals.. I am just starting out in the research stage of starting a vintage/ classic movie theater.. small town/ niche market etc.. any help, input, feedback on where to find info on, movie rights, and legal ramifications for showing old or classic movies would be greatly appreciated.. Thanks & good Luck to you all!!
61. Joey on 7/24/2009 9:41:25 AM
btw.. my contact info is jolosota@aol.com
62. Amaris on 7/27/2009 3:51:48 PM
Hi, i'm 12 going on 13 and my state really encourages young entrepreneurs. I am trying to start my own theater business in my home town. This site has given me great ideas, I know I sound young, but It would be really nice to have it up and running during High school. Thanks this site was a big help! :)
63. Kyle on 7/30/2009 6:51:52 PM
where do the movie theaters get there movies? is there a website i can go to order new movie releases for theaters?
64. sarah on 8/3/2009 4:20:18 PM
Hello everyone! I am currently a high school senior with no idea what I want to do. Movies are my passion, but I can't get into the actual production of them if I want to live in my home state of Ohio. That's why I am interested in starting my own theater. However, I'm not sure if I can afford it.. This site was rather helpful though. Thanks.
65. Jesse on 8/17/2009 12:31:09 PM
This article is interesting, but it makes it sound easy. As I've noticed in some comments, location is of great importance. 2nd run theaters are failing everywhere. I currently manage one and my employees as well as myself receive below minimum wage. The films (which can be ordered from deluxe film services among others depending on the film you want) cost hundreds to rent, especially if they are closer to the original release date. If you are starting the theatre from scratch, your screen can be anywhere from half a million on up, and projector and sound equipment in the thousands. You will generally charge a lower price for tickets and concessions to receive a reliable stream of customers. This stretches your budget more. Electricity costs are high, heating is huge for such a large theater, and wages for your employees.
66. Deon Knowles on 9/5/2009 11:45:34 PM
Hi! I am really interested in opening a movie theater where I live. I think it would be very interesting to open a theater in my home town that has a particular viewers interest in mind. People are always looking for a place to go and enjoy themselves where I live. So please help me in my quest. I need to know where to get supplies and further information in the movie industry. I am really serious but I don't know where to start.
67. lazarus francisco on 9/12/2009 4:49:44 AM
hey there friends!! this is really helpful information but i'd like to know more about how much it would cost to start a small one and exactly how do i start it in a more detailed way? im just curious cause i'm a 18 yr planning to start my own small movie theatre business sometime in the future. if it all goes well then i will make it grow. but for now i need to gather more resources and information as to how. but anyway thanks for the information..
68. mark corn on 9/15/2009 11:48:07 AM
I want to open up a small theater 75 seats in a small town of 4000 in costa rica. I was wondering how to start the theater for showing movies that are out on dvd but played on the big screen. Is this legal and what do I need to do to make it so? Is there any niches to make it legal as maybe charge a price for food and free entry? Thanks for your help....
69. Anthony Yard on 9/26/2009 6:09:20 PM
I work for a chain of theaters right now. If anyone has any other questions not in the article, drop me a line, I'd be happy to help!
70. Tyra on 9/28/2009 4:15:32 AM
Aloha Mr. Yard... I would really like to talk to you about reopening a theater in a small town of 2k. The screen needs to be replaced and a new reel (spelling) I want to reopen it but have myself acknowledged also... I am not trying to make a million but provide for the community something better. I know we all miss out small town entertainment... can you please e-mail me if you have the time.. tyradu1983@yahoo.com or anyone who reads this who feels like they can give good advice... thanks!! Tyra
71. Michelle on 10/5/2009 4:57:11 PM
Our community of 3,000 needs something. We have a potential venue for a movie house. I really have no idea how to start, who to contact, etc. Can anyone help me? Thanks.
72. Daniel Olel on 10/10/2009 11:15:03 AM
man, your website has helped me. i am in some kind of competition to win money since my dream is to own a movie theater in my life. i hope the information i get helps me win the dime. thank u a lot for the information. thanks
73. Cenon on 10/18/2009 12:28:36 AM
I would like to open a movie theater in San Diego but I don't know where to start and where to get the film. Also, do I need to find an existing place or start from scratch? Please advice. Thanks so much.
74. Ralph M Bohm on 10/28/2009 1:59:54 AM
Hello all, What would be the typical rental cost of a 1st-run movie? What would be a typical cost of an "Indie" film to rent? Thanks in advance. Ralph, truckmen@yahoo.com
75. Sarah Dolan on 11/2/2009 4:44:18 PM
I'm doing a project in class, and I need to know the start up costs, information on licenses and insurance, and stuff like that. if you could help me, it'd be really amazing. :) smd5287@yahoo.com
76. LeAnne on 11/4/2009 11:53:46 AM
lol, i am also doing a project, and i would like to know the cost to build and set up a movie theater
77. Bill on 11/5/2009 11:09:41 AM
I want to start a small theater with tables and chairs, targeting family-teen-kids. I dont want first run movies. Who do i contact to get these movies and show them legally.
78. ali on 11/10/2009 11:17:17 PM
i want to start a movie theatre that not only shows Second run films but shows classic films as well, like the flims from 40s, 50s, 60s, 70s, 80s, 90s, and from this decade as well
79. ali on 11/10/2009 11:19:33 PM
plus sell dvds too, you know that after the classic film ends, you can take the movie home with you.
80. ted fuoss on 11/15/2009 11:10:31 AM
Hi, I'm looking to start a theater and want to know about first run movies. What are the costs to be able to show and who do I contact in-order to obtain first run movies.
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