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This topic comprises 2 pages: 1 2
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Topic: Do one or two screen theaters actually make money?
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Dave Macaulay
Film God
Posts: 2321
From: Toronto, Canada
Registered: Apr 2001
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posted 08-12-2005 10:37 AM
A business is unlikely to survive if it loses money. There are a few cinemas we deal with that are run as a hobby for the owner or at a loss subsidized by the community or a service club in small isolated towns. In most markets competing directly with the majors is a path to bankruptcy.
In Toronto there are several single screen houses that are apparently doing OK. They all cater to niche markets - in a smaller city this likely isn't practical. There's a "chain" Festival Cinemas of 5 rep houses that books 2 second run or classic films per day (14 films a week in each booth!) and a few independent first-run releases. There's one independent rep house as well, the Bloor Cinema... formerly part of the Festival group. We also have several ethnic cinemas - Toronto has a huge ethnic population, probably 99% of immigrants to Canada start out here.
In smaller cities independent cinemas can do pretty well, there's usually a chain multi within an hour's drive but first run product is available and lots of folks will avoid the drive if your presentation is decent. Trying to keep people coming back with worn out seats, smelly dilapidated auditoria, dirty screens, low light levels, crappy ancient lenses, and Distorto-Pathetic® mono sound is not going to work.
We often have folks come in with a dream about some town's shuttered movie palace with "all the equipment still in place", wanting to resurrect it. Unfortunately even if you don't expect an income and only hope to operate at no loss the economics are unfavorable.
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Richard C. Wolfe
Master Film Handler
Posts: 250
From: Northampton, PA, USA
Registered: Apr 2000
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posted 08-12-2005 04:37 PM
I have made a comfortable living from my small town (10,000 pop.) single screen subrun historic (1920) theatre for the past 35 years. I am also able to maintain it in very good condition as well. Granted, I am a booker for a dozen screens, mostly singles like mine, and I deliver film to 6 theatres as well. If I didn't have that extra income I couldn't maintain my current standard of living, but if you back out that income, I could still make a decent living from the theatre building income alone. I say "theatre building" as there are two stores and two apartments that bring in income as well. I also rent the theatre out for special programing during normally dark hours, that helps the bottom line too. It's all part of the theatre business. Most theatres built back in the 20s and 30s always had retail, commercial or housing rental income units as part of the overall business plan. That is something that is seldom ever done today as the theatre operating company usually only rents the theatre portion of the center where the cinema is located.
I must admit that I know of no other single screen theatres in Pennsylvania that support the owner completely, but mine is an example that it can be done. Running a theatre part time doesn't usually give the proprietor enough time to adequately promote the business to the extent that needs to be done to make it really successful.
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Steve Guttag
We forgot the crackers Gromit!!!
Posts: 12814
From: Annapolis, MD
Registered: Dec 1999
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posted 08-14-2005 10:53 AM
There are so many factors here that it is hard to come up with a rule of thumb that I would bet my life savings on.
The Uptown in DC, a single screen theatre, does VERY well. Had the theatre ever lost its high-end feel I don't think it would have done as well in this century. Also, being part of a chain that can force bookings or even get out of bookings give it power that an indy running the same single screen would not have had. I remember one booking where the distributor was told that the could have the Uptown for 2-weeks only, take it or leave it (the distributor took it) is a rare position to be in.
The Senator in Baltimore has to fight tooth and nail for everything it has. It is independently owned and is much more hands on.
Both the Senator and the Uptown have survived (in the past, at least) as "presenation" houses their whole 70+ year exisitances. If someone had twined these theatres back when it was popular to do...I don't think either would exist today. Note, the Senator people have also taken on a twin theatre in Baltimore (the Rotunda) to augment their operation.
We've heard Richard talk of his marvelous theatre, the Roxy and I'm sure it exists due to its "hands on" operation...but in sub-run.
We have a theatre that we occasionally service, the Watson in Watsontown, PA that probably just holds its own but the family that runs it actively participates in its operation, have added an adjoining ice creame shop and does have an apartment rented.
One thing when judging singles is that you have to think in year-to-year terms (true in any movie theatre business but it is more dramatic in a single). You hope that the product in the good times will allow you to coast (or more truthfully, fall a bit back) in the slow times. The P/L columns will most definately be filled on both sides.
Personally, I would rather have a single augment my chain than depend on it supporting the entire business.
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