Small town theater buisness plan

[Greg Melartin]

Hello,
. I'm writing a buisness plan to open a small 40 seat theater in a small town.
. I've read through the forms but am still lost on a few things.
. I'm lost on how to get licensing for movies and equipment.

How do i establish connections with the studios?

Do i have to use commercial projectors and sound systems or would i be able to use a really good home system?

[Frank Cox]

The easiest way to get the movies, especially if you've never done this before, is to get a contract with a booker. Some of the people on this website can give you contact information for bookers in the US. Then they deal with the movie companies for you.

If you want to play movies that are in theatres and not stuff on home video, then you'll need to have DCI-compatible projection equipment. The movie companies won't give you their movies unless you have that; "a really good home system" won't do, regardless of how "really good" it is.

[Ed Gordon]

How to Obtain a License to Show Movies in a Private Theater
By Fraser Sherman, Contributor

You need a license to show a movie for anything other than personal, private use. It doesn't matter whether you own the DVD or whether admission to the screening is free. If you violate the movie copyright, studios can be aggressive about penalties.

Who Needs a License?

Everyone needs to license any films he shows. It doesn't matter who you are or why you want to show it. The licensing requirement applies to charities and for-profit businesses, arts and film festivals, film clubs and summer camps.

There are some exceptions. If you're showing scenes from a movie as part of a seminar or class, that might qualify as a fair use of copyrighted material. Old movies that have fallen into public domain don't have a rights holder. Identifying whether a film is definitely public domain may take a lot of research.

Warning

The penalties for showing a film without a license are up to five years in prison and $250,000 in fines.

Find Out Who Has the Movie License

A movie showing license isn't like a contractor license. It's not a license to run a movie theater but to show a specific movie for a given period at a given time. Different businesses have the license arrangements with different studios for different movies. Criterion, Swank and MPLC are the major players. If you're looking for specific films, contact the companies and find out which one has the license. This is their business, so they'll be happy to help you.

Pay for the License

After you find the company to talk to, ask the cost of a license. You may have to give specific information about when you're showing the film and how often you're going to show it. MPLC offers an umbrella license, which bases fees on the size of the facility rather than the number of shows. That way you don't have to figure out showtimes in detail in advance. A typical distributor fee for a small theater might be $250 or 35 percent of ticket sales, whichever is higher.

After you've signed the license and paid your fee, the distributor or licensing firm will provide you with a copy of the film. DVD or Blu-Ray is standard – the old-school reels of film aren't used much anymore – but some films are available via streaming as well.

Source:https://smallbusiness.chron.com/obta...ter-21924.html

On which media is allowed:

Can I use DVD’s and Blu-ray videos in public spaces?

Yes, you can, but to do this legally you likely need to buy an MPLC Public Performance License which collects a small amount of money from you to pay to the content producers and Hollywood studios that made the contents of the DVD or Blu-ray that you are showing.

DVD’s and Blu-ray disks will include the text “for personal, private use only” on the packaging. When you have an MPLC Public Performance License, you can exceed that limitation as you have paid the extra amount required to show the content publicly.

MPLC Public Performance Licenses are affordable, easy to buy, and can be put in place immediately. They are the legal way to show movies and TV in a public or commercial space.

Source:https://us.mplc.com/faq/can-i-use-dv...public-spaces/

The link above is to MPLC (Motion Picture Licensing Corporation). You can get a license from them..

[Mike Blakesley]

The MPLC license will not work in a theater as proposed by the OP because you can't charge ticket prices with that license.

I'm curious, Greg, why do you want to have only one screen? Is it a space issue? You should really, really try to get to two screens. Our biggest headache right now is only having one screen. What I wouldn't give to have enough room for another screen.

However, the above only applies if you're wanting to show first-run movies on (or close to) the national break. If you're going to play second run, oldies, repertory titles, specialty films and the like, then you may not need to worry about those pesky three-week playtimes the studios keep insisting on.

[Ryan Gallagher]

Yeah where you need to land in terms of technical capability (DCI compliance etc) really depends on what your screening goals are. If you aspire to show first run films at the highest quality, then you'll be in the higher budget range.

If you just want to be a repertory/classics/community space, there are potentially cheaper options to get up and running, and you can upgrade later on. You can certainly show rep titles off blu-ray (we do all the time), but we still pay the same licensing fees as if we were getting a studio DCP essentially (minus shipping etc)... for us the blu-ray option is only for when there is no print or DCP available for a particular film. I don't know how studios feel about showing Blu-Rays when there are better options available, but it might depend on the capabilities of your space.

I believe Mike is correct in that ticketed screenings is not what the MPLC license covers. Think more along the lines of a restaurant or bar that shows movies as part of it's ambiance.
https://us.mplc.com/faq/we-do-not-ch...mance-license/

I'm not sure how a single-screen 40 seat first run cinema would even be a viable business model honestly, but I guess it really depends on the market.

[Mike Blakesley]

I don't know how studios feel about showing Blu-Rays when there are better options available, but it might depend on the capabilities of your space.

I don't think they care. Some studios will send you a DCP of their title at $$$ (actual rate depends on the studio) (plus shipping), but will license that same title off of "BluRay/DVD" for less. I don't even think they care whether it's BluRay or DVD.