Help understanding Box Office intake

[FireCaptain4]

I wanted to create a thread for this because I have the hardest time understand how the box office works around theatrically released movies. Throughout the internet, I've read conflicting reports and it seems that, depending on where you look, Box Office intake is different.

So, to spur on the conversation, here's a few items I could use a little more understanding on:

1) What percentage of the ticket proceeds do theaters keep (% of each dollar spent at the theater)?

2) What does a film typically have to earn at the box office to break even? Some have said it needs about twice it's budget because there are claims that theaters keep about half of the money generated at the theater.

http://arkansasmatters.com/media/jpg/box_office_weekend_3202008-12-22-1229966765.jpg

[ilovemovies]

Seeing as I use to work at a movie theater, I'm pretty positive that movie theaters don't make anything from the boxoffice. That's why food/snacks and beverages are so ridiculously high in movie theaters. It's where their money comes from.

I'm not sure quite how much a movie has to make to break even. I would say it's budget but there are other costs like marketing, prints, ects.

[phelonious]

What does a film typically have to earn at the box office to break even?

There are literally hundreds of stories of Directors, Writers and Actors suing for their residuals and movies never ever turn a profit.

[MightyCelestial]

I have tried looking up on the internet about this subject, & from I've been able to find, it is a question that no one seems to be exactly sure about.

[AceD]

Here you go:

http://www.themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much


That should answer all your questions as to where the money goes.

__

As far as what a movie must make to break even, that obviously varies wildly based on budget and marketing. For example, in addition to all the money TRANSFORMERS 2 cost to produce, they spent over $50 million on advertising, so that's money that must be made back as well (although obviously in terms of TRANS 2, they made it back no problem).

[Imsomuchbetter]

Awesome idea for a thread!

[Badbird]

Here you go:

http://www.themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much


That should answer all your questions as to where the money goes.

Wow. I didn't get very far, but that really isn't very accurate.

The whole "movie theaters don't make money of tickets" line is just a myth. Movie theaters keep half of the ticket sales, initially. The longer a movie plays, the better the deal gets for the theaters. If a movie plays for many weeks, the theater typically gets to keep 65%.

Some studios try to strong arm theaters and make them pay 60%, but they rarely get that deal. Lucas tried with the Star Wars movies and the industry pretty much said "No." Sony actually tried to get 80% of the ticket sales for Godzilla.

I've been doing this for fifteen years and most of our cash intake comes from ticket sales. It usually dwarfs our concession totals. There is no way we could survive just on popcorn sales alone.

[dellamorte dellamore]

Yes, i think some of that info is outdated, from what i understand the average split for the first weekend is 50 percent, then it increases in the theater's favor with each successive week( i understand the split is negotiated for each film, so the number can be higher or lower depending on the perceived popularity of the film but you would know more about that Bad). Imagine a film such as Rotk, it was in theaters for a year, now it's not just the total, but how that total is accumulated that made certain theaters tons of money, it probably got to the point where they were keeping 80-90 percent. Of course, by then it was prob 90 per of 2 dollars, but still:)

Those films with "legs" are the ones that really keep the theaters in profit mode and the ones with 100 mil plus opening weekends.

DK was a killer for the theater owners, it had terrific holds for almost 2 months, they need monster films like that to stay afloat.

I thought about something else also, a couple of times i went to a weekday show and i was the only one in the theater. Now, for me it's a good thing, i get to adjust my jewels, dig for gold, cut some cheese and all manner of nonsense men do when they are alone, but, at 6 dollar a ticket, with one ticket sold, they are losing massive amounts of money on that show with regards to utility rates alone.

I would say, for day shows, if a ticket isn't sold by a certain time, don't show the film and turn off the lights, they would save tons of money by doing so. If someone shows up late and wants to see it, give them a raincheck for a future showing. They have to get creative in order to save money. I know it sounds radical, but much like we hear about wasting gasoline as a result of driving inefficient cars, we should be looking to the theaters to do their part also.

[Badbird]

I would say, for day shows, if a ticket isn't sold by a certain time, don't show the film and turn off the lights, they would save tons of money by doing so. If someone shows up late and wants to see it, give them a raincheck for a future showing. They have to get creative in order to save money. I know it sounds radical, but much like we hear about wasting gasoline as a result of driving inefficient cars, we should be looking to the theaters to do their part also.

With movie theaters, business will always fluctuate wildly. The very busy weekends make up for the very dead weekdays.

But you would never want to do what you mentioned, as a theater. If you offer someone a raincheck because no one showed up, they are less likely to come back again. They'll think to themselves, what if I go out there just to be turned away again.

I know what you're saying about utility bills and such, but it just wouldn't be efficient to try and run a multiplex that way.

[Darth Kenshin]

Some studios try to strong arm theaters and make them pay 60%, but they rarely get that deal. Lucas tried with the Star Wars movies and the industry pretty much said "No."

Are you sure? I really thought Lucas was successful in making that deal

[franky4fingerz]

I was a projectionist at a theater from 04-07 and if nobody came to a movie we would start it on time, then after about 15 min and still nobody was there I cut the bulb off, those things ain't cheap. Also the last show of the night I'd make the boxoffice call me if a ticket was sold to anything, if not then I wouldnt even thread it up.

[ilovemovies]

I was a projectionist at a theater from 04-07 and if nobody came to a movie we would start it on time, then after about 15 min and still nobody was there I cut the bulb off, those things ain't cheap. Also the last show of the night I'd make the boxoffice call me if a ticket was sold to anything, if not then I wouldnt even thread it up.

15 minutes into the actual movie? Or starting from the showtime listed upfront and in papers, ect.?

I've arrived as late as 15 minutes into the showtime because that's how long trailers are these days.

[Silverload]

2) What does a film typically have to earn at the box office to break even? Some have said it needs about twice it's budget because there are claims that theaters keep about half of the money generated at the theater.

General rule of thumb is that a film needs to make back roughly two & a half times its budget before seeing a profit. Most movies accomplish this through the worldwide boxoffice, and then DVD sales are all profit (which is what studios want).

A $100million movie needs around make around $250million from the worldwide boxoffice, where as a $200million movie needs to make around $500million.