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Topic: Where all do First run theatres get 50 % of Gross (minus taxes) ?
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Kamakshipalya Dhananjay
Expert Film Handler
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Posts: 190
From: Bangalore, India
Registered: Aug 2002
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posted 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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Dustin Mitchell
Phenomenal Film Handler
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Posts: 1865
From: Mondovi, WI, USA
Registered: Mar 2000
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posted 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.
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