How Do Theaters Make Money

Are you a movieholic who can always be found sitting at the seats in the cinema each time there is a new movie released? Then you might wonder how these theaters work.

If you are curious about it and you also plan to venture in the theater business someday, this article will provide you with the things you need to know.

These theaters make money easily due to the combination of the different operations and factors. So, if you would like to achieve the success of the theater’s money-making you need to get familiarized with the several operations.

How Do Theaters Make Money Easily?

The very first operation that these theaters revolve in is distribution. They go through the process of negotiation with the distributors for the right of showing a film. There are cases that the distributor is also a part of a large studio system. There are also cases in which the distributor is a studio system independent acting as the middle man in bringing the certain film from the studio to the different theaters. The theater also has two rules such as bidding for a certain film or paying the distributor with the box office’s percentage. These days, most of the deals are percentage ones usually favoring the distributor in the first week of the release of the film. Yes, in the first weeks of the release, the distributor will be given the greater favor but as the weeks go by, the greatest percentage will favor no other than the theater. So, this is how the theater makes money.

Another factor that makes the theater produce money is no other than through concessions because the majority of its money is coming from the sales of concessions. The movies are used as draws in getting the people into several theaters. This is just one of the reasons why the prices of the concession are always high. Another truth about these movie theaters is that if they were not able to make money from popcorn, candy and soda sales, they would not succeed.

Another factor that plays an important role in the process of money-making is the schedule. Every movie is given with a running time with commercials and previews beforehand dictating a number of screenings everyday. In order to successfully provide most of the screenings everyday, they are scheduled and advertised as well.

The employees also play important roles in the success of a theater to earn lots of money. If they are friendly and well accommodating, of course the viewers would always prefer to go back to it. So, if you are planning to make theater as your business, make sure that the employees you would hire have the best character and skills. Bear in mind that they also have impact on the amount of money your theater would produce.


    (All the above fields are required.)