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This topic comprises 2 pages: 1 2
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Topic: How Much Does It Cost You?
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Ky Boyd
Hey I'm #23
Posts: 314
From: Santa Rosa, CA, USA
Registered: Jun 99
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posted 12-11-2000 02:39 PM
Box Office Gross. Feature film rental is almost always a % of box office gross. FYI, for mainstream houses average film rental has been slowly creeping up over the past 5 years from about 50 to 55%. Arthouse film rental runs about 40% on average. Discount usually averages out between 30 and 35%.
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Ian Price
Phenomenal Film Handler
Posts: 1714
From: Denver, CO
Registered: Jun 99
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posted 12-14-2000 05:51 PM
Film Gross is figured with the Net after Tax has been taken out. Here in California, movie tickets aren't taxed making the point moot. Most ticketing systems figure out net of sales tax.The rule is minimum film rental vs. 90/10, which ever is greater. For each theatre, each studio establishes a house allowance. The house allowance is a per seat figure, so the house allowance is the per seat figure times the number of seats in that particular auditorium. You figure the 90/10 rule by deducting the house allowance from the gross. If that figure is higher than your negotiated percentage, you pay the higher amount. (Now you know why theatres cram all those miserable seats up in front by the screens, it brings up their house allowance.) (Note: New cinemas with stadium seating and all digital sound receive a higher house allowance than older more traditional theatres. But you do get points for having digital sound and other improvements. With this as an incentive, why do theatres hesitate to make upgrades? Example: With Sony pictures, if you install SDDS you get a higher house allowance.) Most films are on a settlement agreement. So as long as you keep sending in the minimum amount of film rental you owe each week the studios are happy. After the film run, the accountants figure it all out, sometimes months later. We never paid 90/10 until the Thanksgiving week of Billy Elliot. But we haven't settled yet.
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Paul G. Thompson
The Weenie Man
Posts: 4718
From: Mount Vernon WA USA
Registered: Nov 2000
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posted 12-14-2000 06:12 PM
Thank you, Ian. I remember two instances that really cost theater owners some money. One was the movie "American Graffitti" (poor Spelling) where the theater owner had to guarentee "X" number of dollars for "X" number of weeks. For the first two weeks, the house was filled (450 seats) to capacity. Then the movie died, and the last two weeks it ran to almost an empty house. The theater owner lost his shirt on that one, so he says. The other was "Return of the Jedi", and I had to carry a $25,000 Cashier's check to Seattle just to get the print in the trunk of my car. We ran that thing in a 250 seat house for 4 weeks and we didn't even make the 25,000 guarentee. In fact, we lost 5,000 on it. Quite honestly, I think the owner of that theater used hind sight when he booked that movie. 
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Barry Floyd
Phenomenal Film Handler
Posts: 1079
From: Lebanon, Tennessee, USA
Registered: Mar 2000
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posted 06-14-2002 12:40 PM
This isn't it... I read it earlier, but this wasn't the one. The one I was talking about, Ian had posted a whole list of items that were specifically related to the "operating cost" of his theatre. Things like, lease payments, payroll, payroll taxes, insurance, accounting fee's, etc.. It was a very thorogh list from what I remember, that's why I'm hunting for it.
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