The movie theater business idea was extremely profitable a few decades ago. Most people have no other opportunity to watch a good movie than the cinema.
Nowadays, the development of home appliances has gone so far that the quality of watching a movie at home is no worse than in a movie theater. However, people continue to go to the cinema.
First, it allows you to watch the latest movies before they appear on the TV screen.
Secondly, going to the cinema remains a joint entertainment for a small company.
The implementation of a cinema business idea can hardly be attributed to a business for beginners.
The creation of even a small modern cinema will cost millions of dollars. In addition, the profitability of the cinema is possible only if it is possible to ensure its attendance.
Nowadays, the most promising option for a cinema business idea is to create a small 3D cinema.
Despite the saturation of the market with consumer video equipment, not everyone has the opportunity to watch a movie in 3D format. Moreover, many 3D films are much more interesting to watch in the cinema, since the large screen allows you to create the necessary effect of presence.
The rather high prices of modern cinemas are associated with the need to share income with film rights holders.
The deduction to the right holders is 50% of the proceeds. Accordingly, the payback of the cinema depends on the balance between prices and the interest of viewers in watching a new film.
In order to recoup the investment in the cinema business idea, it is necessary to ensure high attendance during one or two years of operation of the cinema.
However, it is not possible to ensure one hundred percent filling of the auditorium, especially during the daytime. Therefore, the opening of a large multiplex cinema can only be afforded by large investors who are ready to wait for a return on investment for several years.
A multiplex cinema can quickly pay for itself only in crowded places, for example, in large shopping centers. That is why multiplex cinemas are usually located in such places.
As for the option of creating a small 3D cinema, its hall usually accommodates no more than 40-100 people. This allows you to reduce the amount of initial investment, and, subject to a good location, pay back the project within two to three years.
The success of a movie theater business idea largely depends on prior market research .
The creation of a cinema, even in the absence of competition, does not guarantee its attendance by the audience. Before you start bringing the cinema business idea to life, you need to correctly assess the demand for cinema services, as well as the profitability of this project.
It may be successful to create a cinema in a small town, in combination with other entertainment venues.
You can combine a cinema, a cafe and several retail outlets, creating a kind of small entertainment center. It may be a good idea to combine a cinema with a small leisure center for children. In this case, adults will be able to watch the film, leaving the children in the care of the animators. Thus, all family members, both young parents and children, will enjoy visiting the cinema.
In conclusion, it must be said that the attendance of the cinema depends very much on the choice of films that the cinema offers.
You can get fresh interesting films only by concluding an agreement with a film distributor, deducting income from the copyright holder. A careful selection of films, depending on the time of day, taking into account the needs of various categories of the population, will ensure attendance at the cinema.
However, for this it is necessary to conduct marketing research in order to determine the target groups of viewers for literally every film show.
A correct assessment of the interests of the audience, as well as the creation of comfortable viewing conditions, will make the cinema business idea successful and profitable.