How does cinema pricing work?
Discussion
Do cinemas pay the distributers per showing, or do they buy the rights to show it as many times as they like?
Cinemas are starting to reopen here (Netherlands but presumably it's all the same distributers) and my local one is currently showing a varied list of new and older stuff including 1917, The Gentleman, Deathly Hallows 1 and 2, Bloodshot, Despicable Me 3, Interstellar and Grease.
It got me wondering if they're able to show older stuff they've already show in the past whenever they like, or how much say the distributors have on what's being shown.
Cinemas are starting to reopen here (Netherlands but presumably it's all the same distributers) and my local one is currently showing a varied list of new and older stuff including 1917, The Gentleman, Deathly Hallows 1 and 2, Bloodshot, Despicable Me 3, Interstellar and Grease.
It got me wondering if they're able to show older stuff they've already show in the past whenever they like, or how much say the distributors have on what's being shown.
It's not a simple question to answer as the arrangement varies film by film and across different cinema chains.
Generally; the studio will negotiate a contract with a distributor (most often before the film goes into production to ensure investors that it will reach the market). The distributor will then negotiate a contract with the cinemas. The studio and distributor will set their minimum ticket sales along the lines of 90% of total sales on the first weekend tapering off over the run of the film to 20% on the final week. Anything over these amounts, the cinema keeps. Anything under this amount, the cinema still has to pay.
When you see 'box office figures', that's not the sum total of value of tickets purchased to see the film. That the amount cinemas have paid to show the film that week.
But each film release is negotiated separately and each contract complex and highly variable but the 'winner weighting' is always in favour of the distributor which is why the chains rely so much on concessions and why your bucket of popcorn costs as much as a car.
Older films are simply leased on a flat-rate by the cinema from the distributor for the duration that's required.
Generally; the studio will negotiate a contract with a distributor (most often before the film goes into production to ensure investors that it will reach the market). The distributor will then negotiate a contract with the cinemas. The studio and distributor will set their minimum ticket sales along the lines of 90% of total sales on the first weekend tapering off over the run of the film to 20% on the final week. Anything over these amounts, the cinema keeps. Anything under this amount, the cinema still has to pay.
When you see 'box office figures', that's not the sum total of value of tickets purchased to see the film. That the amount cinemas have paid to show the film that week.
But each film release is negotiated separately and each contract complex and highly variable but the 'winner weighting' is always in favour of the distributor which is why the chains rely so much on concessions and why your bucket of popcorn costs as much as a car.
Older films are simply leased on a flat-rate by the cinema from the distributor for the duration that's required.
Gassing Station | TV, Film, Streaming & Radio | Top of Page | What's New | My Stuff