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Can someone help me answer a question: How are "value" theaters able to charge ~$5, as opposed to other theaters who charge ~$10 a ticket? Do they still owe an average of half the ticket price to the studio? Does the studio get all of their box office income? I know this is a basic question, but how are these theaters able to charge less per ticket?

Thanks.

Those theatres are usually second run. They dont get new releases! The movies they get are on there final run and pretty close to be released on DVD usually!

The percentage you pay the film distributors remains the same whether you charge $10 or $1. The distributor does not control your ticket prices. The most they can do is insist that you pay for anyone you pass. I managed a 248 seat single-screener in Iowa back in '06. The admission was 99 cents. The distributors did not change their rental fees. On any given Saturday I took in $400 at the box. The distributors cut came off that. On that same Saturday I would take in $1,200 at the concession stand. The distributors got none of that.

The studios can and do set what min. Ticket price they will calculate your film rental on. The area of the country also is taken into consideration. In my area you could only charge $4-5 and still be a first run. You would not be a first run theater charging only a dollar a ticket today as you would not get the movies. I was indirectly encouraged to raise prices early on child tickets (was charging $3, now charge $4.

I got the films about 4 weeks after the break. First run for our community but not for the multiplexes 35 miles away. There were dozens, if not hundreds, of people in the community who waited until we got the films in order to escape the high ticket and concession prices at the multiplexes.

Thanks all for the information. It was very helpful and answered some questions for me.

the distribs can and do calculate on a "per ticket" minimum. If you have a bargain night and charge 3.00 they'll ( not all but Sony for certain) recalculate your % to reflect minimum ticket pricing. A theatre was doing some free movies but still had to pay the % based on head count and minimum ticket prices as per your MASTER AGREEMENT.