Question regarding re-running older movies in theaters

[Haris Ellahi]

I am not referring to an "official" re-release in theaters but when a theater decides to re-run a movie once it's past its "official" theatrical run. My question is, does the theater have to pay the movie studio like it does during its official theatrical run? For example, a theater here where I live decided to re-run The Lord of the Rings movies before The Hobbit movie was released in 2012. Would the theater have to pay the movie studio for each ticket sold? Also, am I correct in assuming that theaters get to keep the movies they receive?

[Martin McCaffery]

Yes, you pay.
And that depends on if the rights holder allows you to run the film. Using you Hobbit example, the studio may remove all previous parts of a series from distribution during a period before or after the new movie.

As for keeping the film. In the print age, you returned the print at the end of your run. In the digital age, you can store the film on your server as long as you have room, but you can't play it without a Key, which you get from the studio/distributor/rights holder, which you, of course, pay for. Some small indie films do not require a key, but you are still obligated to get permission and pay anytime you show it.

[Marcel Birgelen]

The licensing model for older movies usually differs from that from first-run titles. Where first-run movies are usually paid based on sold tickets, re-runs of older movies are often paid in one-off fees per day.

Also, it's not always easy to get the permission to play an old movie. Especially Disney is giving everybody a very hard time and given the fact that Disney now owns 60% of Hollywood, a lot of content now is under lock and seal.

There are very few ways to bypass those limitations and some of them may be borderline legal. Like, you could organize a private event in a cinema and play e.g. a Blu-Ray version of a certain movie. Depending on your jurisdiction this is either borderline legal or illegal.

[Justin Hamaker]

My experience is that if it's being done as a free show it is often a flat fee in the ballpark of $350. If it's being done for admission it might be something like $350 or 35%,whichever is greater.