Formal analysis is a Skip to content. Insights of movie theatres On average, movies run for about four weeks in at least 2, theaters. Factors There are some valid reasons for how long a movie stays in theaters. They are: It depends on how successful the film is. Theater owners and movie studios split ticket revenue on a sliding scale.
It favors the studios early in the run but the theaters the longer the run lasts. There is intense pressure from the studios to end the run after just three or four weeks. But if a film remains popular for a long time, the theater may hold onto it for an uncertain long time. This answer may differ in the USA as it differs worldwide. Bollywood movie theaters tend to keep their popular movies showing in theaters for a very long time.
The major factor is the number of seats sold during screening. And if a movie goes beyond a two-week run in the cinemas, it is safe to say that the movie is making a good profit. Both movie distributors and exhibitors will also decide if a movie extends depending on how well a movie performs in relation to other movies that are screening at the moment.
If it is a movie that does relatively better than others, then there is a greater chance for it to extend. On average, big blockbuster movies stay in theaters for about four weeks.
So, to know more about how long movies stay in theaters, it is important to look at movie distribution. Movie distribution can go about in two ways: bidding and percentage. Bidding is when a movie distributor and a movie exhibitor agree that the exhibitor pays a fixed amount to show a movie for an agreed amount of time. However, bidding is now rarely used by distributors and exhibitors.
Percentage works basically with the distributor getting a percentage of the box office or ticket sales. The exhibitor states the needed amount of house allowance, which is a set amount that covers the basic expenses of the theater each week.
They set the percentage split for the ticket sales after deducting the house allowance. In addition, they set a time frame for the movie screening, which can be anywhere from 2 to 4 weeks, with the provision to extend if necessary.
Movie distributors get the majority of the profit brought in by the movie. The distributor and exhibitor agree that the distributor gets the set percentage of either the net ticket sales or gross ticket sales, whichever amount is greater.
The theater will compute expenses or the house allowance. This amount is deducted from the total ticket sales. With this example, you see that weeks 1 to 3 have a higher gross percentage. The amount also goes to the distributor. On week 4, the net percentage is higher, and that amount goes to the distributor. The theater will break even on week 1, lose money on week 2, and only profit on weeks 3 and 4.
Now, you may wonder why theaters continue to thrive when most of the profit goes to the distributors? Ever wonder why popcorn is expensive in theaters? Without these concessionaires, a lot of theaters would not stay in business for long. Now, if the movie is doing well and the crowds continue to come, a renegotiation may happen between distributors and exhibitors. Decades ago, without the option to watch the latest movies at home, going to a theater was the only way to watch the latest movies.
Steven Spielberg produced E. This classic science fiction and fantasy movie captured audiences around the world. R-rated movies can still be excellent and even act as outliers of the system and perform pretty well, but studios most likely won't greenlight a screenplay unless it's free of any bad language, nudity, sex, or anything else that would usually get a movie an R rating.
If a movie has an R rating, it immediately cuts out millions of potential ticket buyers. There are some movies with great rotten tomatoes scores , and very few of them underperformed at the box office. Making the wrong casting decisions can have a massive impact on the success of the movie , which is why the same ten actors tend to share the majority of lead roles in movies released today. The business is relatively new, although it has been around for the length of time that everyone on earth has been alive.
It started in in Paris playhouses. Now, major studios such as Disney are in the works of new deals. Can you imagine a world where you can get the newest release right away if you are willing to pay a premium price?
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