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TOPIC: Second Run Movie prices???

Second Run Movie prices??? 21 Feb 2009 18:57 #30947

I'm planning on opening a movie theater that serves alcohol and food eventually, similar to Arlington Cinema and Draft house if anyone is familiar with the DC/Virginia area. I will be opening in the Williamsburg neighborhood in Brooklyn, NY. I'm in the preliminary stages of the business, still working on the business plan. But I was trying to figure out how much it would cost to get second run movies on 35mm. That's what we would hopefully be showing, mostly 2nd run and older movies. I found info on getting a booking agent, but how much does each film cost to get? Do we have to pay a flat fee each time we show the movie? I saw in a post something about prices in the "archives" but i wasn't able to find that. Any help would be greatly appreciated.

Thanks!
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Re:Second Run Movie prices??? 21 Feb 2009 20:08 #30948

  • revrobor
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Sub-run films are usually rented on a percentage basis (usually 35 to 50% of the boxoffice gross). Classic films usually rent for a flat rate frequently $250 a week. Current releases can cost up to 90% of your boxoffice gross. The price will vary from distributor to distributor. There is a list of distributors on this website under "Resources". Click on "Film Distributors" and ask them directly.
Bob Allen
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Re:Second Run Movie prices??? 21 Feb 2009 22:41 #30952

  • slapintheface
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The highest film rental I have ever paid was 70 % and that is once in the last 2 years .My yearly average is 52%...
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Re:Second Run Movie prices??? 23 Feb 2009 15:10 #30957

  • RoxyVaudeville
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I own a 2nd run theatre and book several others as well. I have been doing this for over 40 years, and I must admit that film costs presently for 2nd run are the lowest that they have ever been during all those years.

While what Bob said is indeed correct, that your rentals will run anywhere from 35% to 50%, the vast majority of them will be at 35% with holdover weeks sometimes being 30%. The occassional blockbuster film will be 40% and on rare occassions 50%. Over the past several years, my yearly film rental has averaged about 37.5%. My 2nd run booking accounts all come in at about 36%. The only reason that mine is slightly higher is because I gross far more then they do and therefore the 90/10 deal kicks in for me. By the way, you new folks to the business may often read or hear about theatres paying 90% film rental. That is industry folklore... no one EVER pays 90% film rental on a percentage picture.
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Re:Second Run Movie prices??? 24 Feb 2009 15:54 #30961

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Hey Roxy:

When I was managing the Sunset Theatre in Sumner, Iowa in '06 if I exceeded a certain figure at the boxoffice (usually $1400) both Sony and Disney charged me 90% of my boxoffice gross. Thank God for a busy concession stand.
Bob Allen
The Old Showman
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Re:Second Run Movie prices??? 24 Feb 2009 17:20 #30962

  • lionheart
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Bob, don't you mean they charged you 90% of your net, not your gross?

I'm sure Roxy is aware of the 90/10 rule. He has provided a great written explanation of it on these boards before. When he says there is no such thing as 90% film rental, I understand him to mean that nobody ever charges 90% of the gross. I remember long ago asking a guy who worked as a projectionist if the theater made lots of money off ticket sales. It was a discussion about concession prices. He said they didn't really make any money off ticket sales because the theater had to pay 90% of ALL ticket sales to the film distributors. It seems his boss probably told everyone that was the case so that he could better justify his concession prices. I think that is the "folklore" that Roxy is talking about.

If film distributors charged me 90% of my gross, I might soon find myself out of business.
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Re:Second Run Movie prices??? 24 Feb 2009 19:57 #30965

  • slapintheface
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When i know the boxoffice gross on a picture will be high and 90/10 will kick in I always take the aggregate deal. IE.A FLAT 58% EVERY WEEK OF RUN.....
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Re:Second Run Movie prices??? 24 Feb 2009 20:36 #30966

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It was 90% of my boxoffice (minus the "house allowance") for the week so yes it would be net. When the films were booked it was 50% but if I went over the $1400 it jumped to 90%. (My admission was .99 cents for all seats and all ages.) It's a 248 seat house.
Bob Allen
The Old Showman
Last Edit: 24 Feb 2009 20:44 by revrobor. Reason: typo
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