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TOPIC: starting a discount first run

starting a discount first run 12 Feb 2005 22:12 #9803

I am in the Kansas City area and there is an old AMC 6 and a old Dickinson 6 Right across from each other both have been closed for at least 3 years or more. There is a 24plex AMC a few miles down the road that opened about 5 years ago. The Amc 6 was just taken over by a company who runs and operates a couple other discount or 2nd run theaters here in town and they have taken over this AMC 6 and have been really busy since they opened. My idea is to start a moveover or discount first run in the old Dickinson across the street. there is a really nice discount first run in another town 3 hours from here and they charge 3.50 during the day and $5 at night and they get first run movies about 2 weeks or so after they start at the first run theaters. They do really good business are always busy. I am curious if something like this would work in the situation i am proposing?
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Re: starting a discount first run 13 Feb 2005 10:39 #9804

  • trackfood
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We don't know your particular situation, but it sounds to me like there are already WAY TOO MANY screens in your area...
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Re: starting a discount first run 13 Feb 2005 14:28 #9805

Why do you say that? There is a need for discount theaters because its been said over and over here that ticket prices are just to high at $8.50-$9 a pop at night and 6.50 during the day. Also the city is so spread out and all the guys who own the only 2 decent dollar theaters in the town say that there is a need for more discount theaters weather first or second run as people do not want to pay 9 a pop to go to a movie. They do now simply because there is no other alternitve. There 2 dollar theaters are always busy even in the afternoons in the week. But lets say there were no other theaters. I want to know more about how that works how you can get a print 2 weeks after its offical release date and show it for cheaper? because there is another theater close by in another town that i have looked into in the past and there is only 1 other theater in that town to compete with and would be a awesome sell if i could sell tickets cheaper.
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Re: starting a discount first run 13 Feb 2005 15:17 #9806

  • wimovieman
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Feeling in a funny mood so have to say--very easy getting a print 2 weeks after the break--when it flops nationally--then there are many prints available
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Re: starting a discount first run 13 Feb 2005 15:37 #9807

what about when its a good print? i mean it must be able to be done as there are several theaters like that in this area of the country i have seen just non in KC area.
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Re: starting a discount first run 13 Feb 2005 19:45 #9808

  • Ken Layton
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You must be talking about "mid first run" bookings. Generally if the big theater complex has multiple prints of the same movie after a couple of weeks they drop one or more prints of that movie. This makes a print available for someone else (like you) to book.
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Re: starting a discount first run 13 Feb 2005 22:14 #9809

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The other thing you need to consider with a large first run theatre so close to you, is that you probably won't even get a sniff at any title until the mega is completely done with it. From the studio point of view, why would they put their product in a close proximity of a competitor who isn't going to give as big of a return dollar wise. We're not talking butts in seats, but the amount of dollars with respect to those butts. In other words, if you're charging $5 per seat and the theatre 3 miles away is charging $7, why would you want to give movie goers the option? You want the largest return on your product which is going to be a percentage of $7. So when the $7 theatre isn't playing a movie anymore, $5 is acceptable for the few people that haven't seen it yet. The other problem is that these people are also the ones that do NOT patronize the concession stand (generally speaking, of course. There are exceptions). You certainly wouldn't say,"You can have the large popcorn and pop for either $8 or $6." Guess which one will sell the most but has the lesser margin.
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Re: starting a discount first run 13 Feb 2005 22:40 #9810

well a few years ago there was the AMC and the dickinson right across from each other but i have seen theaters are spreading out more and instead of several small theaters they will have one bigger theater. So your saying people who wont go to the first run theater because of prices will not visit the concession stand as much either?
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Re: starting a discount first run 14 Feb 2005 01:57 #9811

  • trackfood
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Yes, If the people don't want to pay full price for admission, they certainly don't buy concessions (as previously said there are exceptions). These are the people that walk by the concession stand, or bring in their own soda and snacks, or who stop at your concession stand to get a free glass of water from you...
Yes, you may have a problem getting prints with that many theatres so close by. The film companies have a history with these other operators which is very important to them, and as previously stated, why would they want to give you a print in the same area if you're going to charge less? (Yes, I understand your theory, you'll sell more tickets, but the film companies don't see it that way)
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