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Wednesday 9 October 2019

Revenue Model for Movie Theatres?

answers1: The movie theater pays an average of about 50-55% of its
ticket sales to the movie studio, as film rental fees. The actual
percentage starts with a number higher than that, and decreases as the
duration of a film's showing continues, as an incentive to theaters to
keep movies in the theater longer. However, today's barrage of highly
marketed movies ensures that most movies are shown in first-run
theaters for less than 8 weeks. There are a few movies every year that
defy this rule, often limited-release movies that start in only a few
theaters and actually grow their theater count through good
word-of-mouth and reviews. According to a 2000 study by ABN AMRO,
about 26% of Hollywood movie studios' worldwide income came from box
office ticket sales; 46% came from VHS and DVD sales to consumers; and
28% came from television (broadcast, cable, and pay-per-view).

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