Box Office Accounting

[JaxRed]

While reading up on Geostorm which is expected to be a flop, they talk about how much it makes at box office versus how much it costs, but how much of the box office (ticket price) goes to the theater? If it makes 100 million but 50 million goes to theater, that's much worse....

[WrongVerb]

How the movie industry figures gains and losses would put the mob to shame. I'll try to find an article that touches on just how shady it really is.

[757690]

In nearly all cases, the studio takes in close to 100% of the box office. They pay each theater a fee to show their movie, usually between $5-10K a week, and the theater makes most of their money selling popcorn, soda and candy.

[JaxRed]

How the movie industry figures gains and losses would put the mob to shame. I'll try to find an article that touches on just how shady it really is.

I've heard that, but it wasn't really my question. The studio/theater split was what I wondered about.

[kaldaniels]

In nearly all cases, the studio takes in close to 100% of the box office. They pay each theater a fee to show their movie, usually between $5-10K a week, and the theater makes most of their money selling popcorn, soda and candy.

That’s interesting. But then how do theaters set their prices? Or does the studio dictate it? Last I checked you could see a first run movie in rural Ohio for several bucks less than in this countries big population centers.

[757690]

That’s interesting. But then how do theaters set their prices? Or does the studio dictate it? Last I checked you could see a first run movie in rural Ohio for several bucks less than in this countries big population centers.

That's a really good question, and I honestly have no idea. My guess it's the studios, kinda like the way gas stations run, but that is just a guess. The theaters do get some of the box office money, after a movie has had a full run, and stays in theater for an extended run. By that time, the studio has made what they need to make, and lets the theater take as much as half of the ticket sales. So they both do have a stake in the ticket prices.

[JaxRed]

757's answer makes this article make more sense.........

http://www.showbiz411.com/2017/10/21...ier-than-usual

About how the studio is pulling the movies...not that the theaters are dropping them.

If I had to guess, after the studios no longer will pay to show them, the "discount" theaters rent them on the cheap.

[*BaseClogger*]

Other factors to keep in mind:

Nowadays movies do like half of their box office receipts in international markets, the most significant of which being China. Blockbusters do a greater portion of their revenue overseas compared to movies targeted at adults. Art house films sometimes do quite well in Europe.

In addition to the production budget, the studios also have to spend on marketing their product. The rule of thumb I usually see used is that roughly half the amount of the production budget is spent on marketing, sometimes less if the studio wants to bury the film, and sometimes much more when they think it has broad appeal...

[Kinsm]

In nearly all cases, the studio takes in close to 100% of the box office. They pay each theater a fee to show their movie, usually between $5-10K a week, and the theater makes most of their money selling popcorn, soda and candy.

I'd love to know where you get that from.

I used to work for AMC, we took in just under 50% of box office receipts. And we weren't charged anything for showing a film, in fact some studios paid us to show one of their films over another.

[757690]

I'd love to know where you get that from.

I used to work for AMC, we took in just under 50% of box office receipts. And we weren't charged anything for showing a film, in fact some studios paid us to show one of their films over another.

I got it from movies of mine that were distributed to theaters.

Here is an article that explains everything better than I did.

http://money.cnn.com/2002/03/08/smbusiness/q_movies/

Most of the money from ticket sales goes back to the movie studio. A film booker leases a movie to a particular theater for a set period of weeks. 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.
"Owners joke about being in the candy business," said theater owner Howard Edelman, proprietor of Movieland Cinemas, an independent string of cinemas in the Long Island, NY-area. "If you didn't have concessions at a movie theater, there would be no movie theater. We have movies just to get people in to buy popcorn and candy, where we make our money."

[Rojo]

I got it from movies of mine that were distributed to theaters.

When I worked in movie theaters in the 80's the studio would either take 70% of the gross BO or 90% of the net BO. Concessions were solely for the theaters.

Now how they figured out the "net" I never could tell.

[Sea Ray]

I got it from movies of mine that were distributed to theaters.

Here is an article that explains everything better than I did.

http://money.cnn.com/2002/03/08/smbusiness/q_movies/

I would think even at 20-30% of a 12-15 buck ticket the theaters would make more money from the box office take than concessions. I don't see many people buying concessions because it's so bloody expensive.

[757690]

When I worked in movie theaters in the 80's the studio would either take 70% of the gross BO or 90% of the net BO. Concessions were solely for the theaters.

Now how they figured out the "net" I never could tell.

At least when dealing with movie executives, I always recommend taking the gross. They have brilliant accountants that do magical things when figuring out the net.

[757690]

I would think even at 20-30% of a 12-15 buck ticket the theaters would make more money from the box office take than concessions. I don't see many people buying concessions because it's so bloody expensive.

I know I never buy it because of the outrageous prices. But I do know that theaters still make most of their money from concessions. One reason why the prices might be so high is because ticket sales are declining.

[marcshoe]

Here's how it really works.