Institution

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What is the main film going audience?

The main film going audience is young people from 10 - 40 years old. This is because many mainstream films are first to be shown in cinemas and are then released online or on DVD. Many independent films do not make it to cinemas because they do not attract a large enough audience, the people who watch these type of films usually access them online or on DVD.

 How do cinemas make most of their money?

Cinemas make most of their money through ticket sales, concessions and on-screen advertisement. Usually, ticket sales do not generate a huge profit for cinemas, this is due to the split of sales revenue between the movie studio and cinema itself. For the first couple of weeks, only 20% of a ticket sale actually returns to the cinema, instead the remainder of the money is rewarded back to the movie studios. As the weeks progress the percentage tends to increase in favour of the cinema, for example after 4 weeks the cinema could gain 50% or 60% of each ticket sale. Concessions such as, food & drink generate a healthy revenue for cinemas, this is because they are able to price the goods high as the demand is also just as high.

 How do you get a film into the cinema?

In order to get a film into the cinema the production team needs to send it to a studio where they can make an agreement with a distribution company. Once this agreement is made the distributor contacts the representatives of cinemas and offers them with different films. The representatives choose what films they wish to lease and then they are shown in cinemas with an engagement contract which lasts for around two weeks.

What does a distributor do?

A distributor has a job to show films to all types of buyers in order to gain as many agreements as possible so that the films are shown in all cinemas. After the film has been showed the prints are given back to the distributor and then make an agreement on the payment required. Here are some major distribution companies: