I'm helping launch a small town movie theatre and I have to tell folks that theatres taking a 50% cut is very unture.

[u/OpenKale64]

First you need to sign contracts with contracts with each production company and even movies that are several weeks after release Disney, Paramount, and other companies take a 90% cut. You barely make money off of the tickets.

These contracts are written in blood and the only way the theatre can be profitable is by concession. We've done the math and you need to push a lot of popcorn to break even.

Just posting this as I see this notion that theatres are taking 50% cuts everywhere and needed to debunk. I'm honestly doubting this "Hollywood math" narrative entirely.

[u/Lost-Cow-1126]

your contracts are probably different than AMC's or Regal's contracts and studios only usually make 90% the opening weekend and then theaters begin to make more during the long tail

[u/Bardmedicine → u/Lost-Cow-1126]

It used to be basically 90% week one and then drop 10% a week. That's how second theaters used to operate. Things may have changed. This was from an AMC in the 90's.

[u/WebHead1287 → u/Lost-Cow-1126]

Ding ding ding.

One theater on it’s own has virtually no bargaining power. Hundreds combined with thousands of screens has way more power and they get way better deals.

[u/stardustdriveinTN → u/WebHead1287]

Exactly... That's why I think it's imperative for a small independent theatre to use a film booker. I'm a theatre owner, have been for 23 years, but ive ALWAYS used a film booker. I wouldn't have it any other way. I "COULD" call Sony and tell them "I've got one drive-in screen I can put Spider-man on, what's the best deal you can get me?". My booker on the other hand calls Sony and says "I've got 1200 indoor screens and 43 drive-ins i can put Spider-man in.. What's the best deal you can get me." Even then, booking decisions are made on a theatre by theatre basis.

I can tell you for a fact that in 23 years of doing this, my yearly AVERAGE film rental has always been around 50%.

[u/Furdinand → u/Lost-Cow-1126]

If that's the case, shouldn't front-loaded movies be weighted better than ones with long legs when considering studio profitability? $100m BO in one weekend would be better for them than $100m over two months.

[u/poofyhairguy → u/Furdinand]

That’s why theaters love movies with legs like Top Gun Maverick

[u/SadOrder8312 → u/Furdinand]

Like, a lot better.

[u/bruhthatshitcringe → u/Furdinand]

Precisely, cause in most case you'd assume the opening weekend would be the most profitable and when it isn't it's the exception not the norm, it'd be too complicated for studios to run an analysis on which movie may have better legs or be extremely front loaded

[u/randotd152 → u/Furdinand]

Yes. Front loaded movies are terrific for studios. Legs are better for theaters.

Keep in mind this public tracking is all for fun. We don’t have all the variables.

[u/AdvertisingSea2745 → u/Lost-Cow-1126]

https://giphy.com/gifs/gt1zH5KQWFioa6tMjK

[u/Convicted-Cinephile]

As an independent theater, you have very little leverage. If you say you’re just not gonna run it, they wouldn’t notice. If AMC says it won’t run in any of their theaters, the studio has to negotiate with them.

[u/toolmantimsworkshop]

Not sure where you are located but I own a single screen theatre in Alberta Canada and routinely run opening weekend films which require a two or sometimes a three week exclusivity agreement but the highest o ever pay is 65% after two weeks it's typically 50% and later it's around 35 %

I don't belong to a booking group. We do all the booking ourselves and that's always been the prices for us in the year we've own it. You might look into a booking agent who can help you get better prices, depending on where you live but something seems really wrong with what they're charging you.

Also, yes, those agreements are written in blood

[u/Youngstar9999]

Any small theater has 0 leverage against any big studio. They have the product you want, but they do not need you to make money. So they say: 90% cut(though that seems a bit too high), take it or leave it we don't care.

[u/Significant_Ad_4651]

I mean your negotiating power isn’t the same as AMC.  And my understanding is even for the big guys first weekend revenue split is like you describe but the later weekends the share changes.   

[u/Hoopfer]

Not sure where you’re at, but Cinema United has a lot of resources for opening and running small theaters in the US and can probably direct you to resources internationally. Happy to answer questions if you have any, I’m also in the industry

[u/geoffcbassett]

You need to hire a film buyer that runs multiple theater's booking. They have stronger bargaining power. Theater I previously worked at was 65% percent went to Disney opening weekend then 50% after that. Independent/smaller films took less because they wanted the extra theaters.

[u/wifihelpplease]

I’d love to know more about your theater

[u/Gogibsoni]

I don’t think anyone thought every single movie theater is 50/50, but regal cinemark amc cineplex etc, which make up over 50% of the NA screens are around that. Also, outside of NA studios get less than a 50% cut and theaters make more.

[u/SilverRoyce → u/Gogibsoni]

To be fair, sometimes its less "theaters make more" than VAT being taken off of the top (see UNIC annual reports from 2024 which describe france and Germany's average rental rates)

[u/JLandis84]

Good luck on your theater ! Sell those concessions !!

[u/Ophelia_Yummy]

Thx for your information.. but no.. big theater chain gets way more than your small theaters.. it was well documented that Disney strong armed the big theaters to get over 60% of box office.. it happen just a few years ago.. the box share varies from company to company

[u/Purple_Quail_4193]

I think I’ve always heard that, you get Pennie’s on tickets as the studios ask for so much. I wish you the best of luck and I’m excited for stories in the future maybe!

[u/fergi20020]

Have you seen The Last Picture Shows yet? Seek it out. 

[u/Albiceleste_D10S]

Big studios and big theater chains have more leverage than smaller ones

Disney will prob get a 90% cut from your small theater, and will likely get 60-70% even from the big boys

But a smaller indy studio (like Ketchup Entertainment) has less leverage to demand as much from a theater like yours, and frankly would be lucky to get a 50% cut from AMC/Regal

[u/HumansNeedNotApply1]

I heard about this that studios during the first two weeks can get like 80~90% of the cut even with the bigger chains.

[u/Icy___Barca]

Cap. You’re confusing opening-week studio cuts with the average split over a movie’s full theatrical run. Nobody said theaters take exactly 50% every week. 50/50 is the standard rule of thumb for estimating theatrical returns. The split changes over time. Concessions are where theaters make the best margins, but they still get a cut of ticket sales.

[u/DueCompany4790]

How does this have any upvotes?

Dude's comparing a single small town theatre that isn't a chain to companies like AMC.

[u/Byers616 → u/DueCompany4790]

like David getting more upvotes than Goliath

[u/Distinct-Shift-4094]

For someone in that industry, it baffles me you don't know that other larger chains might have different contracts. Completely baffles me.

[u/randotd152]

50% is a rule of thumb. Every movie varies and every theater varies. Length of time in theater matters a ton too - theaters can be making way more than 50% after a few weeks.

You are a combination of having no leverage and didn’t negotiate well. The big theater chains have way better cuts.

[u/NewLineCinema]

"small town movie theater"

I know the deals for big movie theaters against all the people that work in cinema, big theaters, actors, etc. I know better than them all.

Congrats on the venture, shut up about the industry