US Box office: Collections full but Profits Nil !!

US Box office: Collections full but Profits Nil !!

Now a-days you might have seen lot of press notes saying that this movie has done that much gross or  that movie has done this much gross in overseas! But really does any of the overseas distributor or exhibitor making profits? Already distributors are buying at over price than they are supposed to be and on top of that increased theater rents distributors/exhibitors will be hardly getting 50 to 55% share from theaters.

Here are the latest Theater rents in US:

Most of them recently increased the % scales and here are the current scales based on gross collections:

Big Cinemas Scales (based on Gross):

If gross $0 to 75,000 Distributor gets 60% for week 1 and remaining 50/50

75,001 to 125,000 distributors get 62.5% for week 1, 55% for week 2 and remaining 50/50

125,001 to 250,000 distributors get 65% for week 1, 55% for week 2 and remaining 50/50

>250,001 then distributor gets 70% for week 1, 60% for week 2 and reamining 50/50

Cinemark newly revised scales (based on Gross):

0 to 50,000 distributors get 40%

50,001 to 100,000 distributors get 45%

100,001 to 150,000 distributors get 50%

150,001 to 250,000 distributors get 55%

If it is more than 250,000 distributors get 60%

Also Cinemark is discouraging singles shows in most of their locations. Single shows rent has been increased to $500 for Prime time shows (FRI after 6pm to Sun 6pm)

Regal and AMC:

They decide percentage after the movie run and most of them get only 40 to 45%.

If we look at all those percentages on average big movies may get maximum of 55% whereas mid-size and small movies only get around 50%.

So folks how much gross a movie is making is not important but out of that how much is actually going into our pockets is important!! Overseas Distributors and exhibitors…it’s time to think about this before you buy any new movies at higher prices!! All the best!!

Note: Taxes  which will be around 7% not included. First taxes will be deducted from gross then theater % .

From the desk of myfirstshow overseas market analysts

US Box office: Collections full but Profits Nil !!
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