How to Run an Independent Film Theater : Operating Costs: How to Run a Movie Theater

Hello! My name is Nancy Adler and on behalf
of Expert Village, today I’m going to tell you how to operate a cinema, a movie cinema.
Day to day costs can be challenging. If you’re thinking of opening a cinema, it may look
very glamorous and there’s tons of money rolling in. Well it’s not always that way. I have
proof of that. When you book a film, you have to pay the distributor a certain amount of
money, usually in advance. At the end of the film, they take a percentage of the gross
receipts. You have to send them a box office report and you have to live up to the agreed
percentage. It can often be quite high, so concession is very important to the business.
You really want to generate popcorn sales because that’s probably where most of the
profit is. Out of costs are of course, your booking agent, your delivery, your advertising,
your electric, your heat. Of course, in this day in age, heat is very high, especially
in an old building like this. It’s a lot of fun and it’s very interesting. You meet wonderful
people, but I don’t think you’re going to get rich.


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