How Do Movie Theaters Work

Before movie theaters can show the film, they should negotiate first the right to the distributors. The distributors work in behalf of larger studio.

Nevertheless, the question arises of how do movie theaters work and make money.


If you are planning to run your own movie theater, you should know first how movie theaters work. This is the most important thing to pay attention. Usually, paying for the rights to show a certain film is done by movie theaters. In addition, the distributor is given the percentage of the proceeds from the film shown. This means that the movie theater can only enjoy the percentage share after the distributor has taken its share. Obviously, this set up favors the distributors that is why before deciding to start movie theater business you should determine if the distribution of percentage share is fair and can make you money.


The good thing about running a movie theater is that making money is easier through the concessions. Usually, there are lots of concessionaires who want to sell their products in your movie theater. The movies help in drawing the attention of many people to watch it. However, movie theaters have the possibility to lose money in case that the concessionaires obtain little profit. Keep in mind that the movie theater could not operate for long time if it cannot make money from popcorn sales, soda and candy sales. In like manner, movie theater works and makes money based on the schedule of film’s running time. Usually, commercials and previews are conducted before and after the showing of the film. This means that before the running time of the film. In this sense, it is important to note that the running time of the film or the screening should be scheduled properly in order to obtain good results.


Another factor that makes the movie theater working is the employees. Obviously, any kind of business would not operate without the help of the employees and this is true with running a movie theater. Few skilled workers that have knowledge about running projectors should be employed. Aside from the projectionist, other employees of the theater perform little functions. Nevertheless, they are still important in the business. In like manner, skilled employees are required that can help the theater owner to solve other issues while running the movie theater. Likewise, the theater manager should have the capability to manage and oversees that all positions are doing their job.

Keep in mind that movie theaters can only work by employing the proper timing needed. In this way, it can be ensured that the movie theater can still make money while the people are lining up. In addition, it is also important to monitor the concession lines in order to determine if the theater can obtain additional income from the concessions.

1 Comment

  • Gaurav Mahendru said on March 5, 2017
    I would like to setup my own cinema, Where can I find details about setting up a multiplex in Delhi - NCR


    (All the above fields are required.)