This is topic Where all do First run theatres get 50 % of Gross (minus taxes) ? in forum Ground Level at Film-Tech Forum ARCHIVE.
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Posted by Kamakshipalya Dhananjay (Member # 1391) on 10-08-2002, 10:47 AM:
I am quite surprised at the terms or rentals for theatres in the US. For instance in my city of Bangalore, the terms for American films playing at the best theatres is always 50 : 50. The cost of advertising, print, promotion and publicity is borne by the distributor. Are there reputed theatres in the US that charge a flat rent of 50 % on the grosses ? I need to know because I am offered to buy the best theatre in Bangalore which is currently the hot favourite for American films. This theatre charges a flat 50 % for every week. There are no multiplexes yet in Bangalore. But a number of them are planned and once they become operational, I wonder if Distributors will agree to let this particular theatre take 50 % of the gross (minus taxes) as is the case now ?
How is the scenario in places like Hong Kong or Singapore ?
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Posted by Dustin Mitchell (Member # 372) on 10-08-2002, 03:06 PM:
I can't speak to anywhere else in the world, but it sounds like US theatres might be getting an even better deal than the theatre you mention in India that gets a flat 50% for every week. In the states, as you probably know, it works on a sliding scale, 70/30, 60/40, 55/45, 50/40 or some variance of that. Ocaisonly the opening weekend of a picture will be 80/20 or 90/10, but this isn't as common as some believe. The fact is though that despite the high rent paid on opening weeks, in the end it works out so that the theatres keep 50% or slightly more of their admissions. If you don't believe me check the SEC filings for the big theatre chains.
Posted by Jeff Taylor (Member # 443) on 10-08-2002, 03:39 PM:
Yes, and remember that the distributor / exhibitor splits are after the exhibitor deducts the "nut" or base operating expense of the theater, which varies greatly based on the location, size of theater, and the clout of the exhibitor.
Posted by Steve Kraus (Member # 476) on 10-08-2002, 10:14 PM:
I believe it's generally something like a 90/10 split (after deducting the agreed upon house nut) VS., say, 70% of the total (no nut) whichever is greater for the distributor, for the first so many weeks, 60% for the next period, and so on. There used also to be a minimum guarantee. I don't know if that's gone away or if it's simply been scaled back to less egregious levels; you don't hear about it that much anymore.
Posted by Mike Spaeth (Member # 524) on 10-08-2002, 10:36 PM:
Very rarely do theatres hit their "house allowances" any more. The distributor gets whatever is greater - 90% AFTER the house allowance is deducted ... OR an aggregate percentage (usually 70% for the first week, then falls from there)