Cinema marketing research

Marketing research

The investment in a movie theater business idea is large enough to make the success of the project light-hearted. To avoid loss of invested funds, especially if they were borrowed in the form of loans or leasing schemes, it is necessary to conduct a thorough marketing research that will help assess the profitability of a future project.
The cost of even a small 3D cinema can be several thousand dollars.
A large multiplex cinema requires an investment of millions of dollars. Therefore, it is extremely important to be sure in advance that the initial investment will pay off from the income received from the viewers.
To ensure high cinema attendance, it is necessary to take into account the needs and interests of the audience, choose the right films to watch, and locate the cinema in a convenient place for visiting.

It is possible to assess the potential interest in watching films in a cinema by studying the social composition of the population of the area where the cinema is supposed to be located.

Cinema visitors are mainly young people, children, teenagers, young families. However, cinema attendance can be increased by holding special promotions for other categories of the population, for example, by creating a club for viewing retro films or an art house.
You can assess the potential of viewers with the help of surveys, studying population statistics by age, with the help of public organizations and Internet sites.

The correct and successful location of the cinema is also very important.

Visited will be the cinema, which is located in the city center, close to entertainment and cultural centers, educational institutions. In addition, the profitability of the cinema can be increased by the location of other entertainment facilities under its roof, such as a cafe or a small children’s leisure center.
When selecting premises, it is necessary to take into account the need for additional space for related establishments, as well as for the hall, office space, toilet, locker rooms.
To create a small 3D cinema, you will need a hall with a capacity of 40 to 100 seats, with an area of ​​at least 400 square meters. The hall should have a slope to ensure comfortable viewing, and also take into account the requirements of sanitary and fire safety. The equipment of the cinema room must be carried out taking into account the modern needs of the population. The hall should be equipped with comfortable comfortable furniture, modern technical equipment for watching 3D films, good acoustics, specially selected lighting, and other technical means.
The equipment of a small 3D cinema can be purchased in the form of ready-made kits costing from 2 to 4 thousand dollars. You also need to take care of a sufficient number of durable 3D glasses.
Initial Costs of Implementing a Cinema Business Ideausually amounts to several thousand dollars. They include design development costs; acquisition, repair and decoration of cinema premises and related premises; purchase of equipment and furniture; obtaining permits and fulfilling fire and sanitary requirements; significant funds for the initial advertising campaign.

Current costs will consist of staff salaries, rent and utilities, maintenance of premises and equipment, purchase of licensed films, and advertising.

The cinema’s income is made up of the audience’s fee for purchased tickets, which ranges from $150 to $250 per ticket.

If the auditorium is completely filled, the income from one screening can be about 25 thousand dollars. 10 screenings will bring a quarter of a million dollars a day.
However, it should be taken into account that 50 percent of the income from watching the film must be given to the copyright holder. In addition, 100% filling of the auditorium is a rarity these days.

Therefore, the correct selection of films and the organization of related services are very important for the success of the enterprise.

Experience shows that the implementation of a small 3D cinema business idea can pay off within 1-2 years. Large multi-screen cinemas pay off within two to three years.

In order to correctly assess the future of the cinema business idea , it is necessary to make preliminary calculations of the profitability of the project and prepare a good business plan for receiving investments. You can order these services on our website.