BBMI-Lesson-11

Welcome!

Warm Up - MATH

Take out a pencil or pen.....

Today is your SUMMATIVE MATH Assessment.

Speed Matters.  Accuracy Really Matters.

DO YOUR BEST!!!

Warm-up Discussion

At your tables, have a small group discussion about how much money you think it would take to start a movie theater business.  What will you need to make it happen?  How much will it cost?  Discuss your guesstimates.

How Much Money Does the Theater Actually Get From A Movie Ticket?

According to David Mullich, Instructor at The Los Angeles Film School, Box office revenue is split between the movie theater and studio, but the split varies from week to week.

During the first two weeks, generally, the theater owner's expenses are deducted from the box-office receipts, then the distributing studio gets 90 percent of the remainder and the theater keeps 10 percent. However large the expenses, the distributor is guaranteed at least 70 percent of the box-office receipts.

The percentage paid to the studio drops each week a movie plays, and the average major studio movie ends up earning about 45 percent of the box-office gross in film rentals. (Since smaller studios have less clout with theater owners, their movies will earn less than 40 percent of the box-office gross.)

Why Does Popcorn, Candy, & Soda Cost So Much?

As you just read (above), movie theaters don't make a lot of money on movie tickets...at least not for the first several weeks.  But if you really want to see a movie, are you going to wait WEEKS to see it?  Of course NOT!  You'll see it right away, and the theater will make only a small percentage of your ticket cost.  To make up for this, the theaters must make their money in the area of concessions, especially popcorn, candy, and beverages.  By commanding a significant markup on these items, theaters are able to make money and stay in business.

What Does It Take to Start A Movie Theater?

Let's take a look at just the people involved (no equipment yet)...

When it comes to starting a standard movie theater business on a large scale, you would need the services of the following professionals;

• • Manager (Owner)

  • Human Resources and Admin Manager

  • Accountant/Cashier

  • Marketing and Sales Executive

  • Sound Engineers and Movie Theater Operators

  • Tickets Issuing Officer/Attendants

  • Cleaners

  • Security Guard

What is a Movie Theater?

A movie theater, which is also called a cinema is a venue, usually a building that contains an auditorium for viewing films/movies or motion pictures as it is called in some quarters, for the purpose of entertainment or perhaps education. Almost all movie theaters are commercial operations open to the general public, who attend by purchasing a ticket.

Cinemas/movie theaters are generally custom designed buildings that enables viewing movies from any sitting position; they equally have big lavatories, lobbies and projection rooms.

In the bid to stay afloat in the highly competitive cinema business, owners of cinemas now go the extra mile to ensure that they make their facility welcoming and conducive for customers. Movie theaters now have coffee bars, snack bars, free Wi-Fi and more.

How Much Will It Cost to Open a Movie Theater Business?

These are the key expenses you are expected to make when starting a medium scale but standard movie theater business in the United States of America;

• • The total fee for registering the business in the United States of America – $750.

  • Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, Point-of-Sale machines and other software) – $15,300.

  • Marketing promotion expenses for the grand opening of the movie theater in the amount of $3,500, as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.

  • The cost for hiring a business consultant (including writing business plan) – $2,500.

  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.

  • The cost for leasing a standard facility in a good and centralized location – $350,000.

  • The cost for remodeling the facility and constructing a standard movie theater – $250,000.

  • Other start-up expenses including stationery ($500), phone and utility (gas, sewer, water and electric) deposits ($6,500).

  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.

  • The cost for start-up inventory and cinema gadgets and equipment (movie rights, projectors, sound system, silver screen, good lighting systems et al) – $350,000.

  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750.

  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, receipt issuing computer, computers, tables and chairs et al) – $14,000.

  • The cost of purchase and installation of CCTVs – $4,500.

  • The cost for building and hosting a website – $600.

  • The cost for opening party – $8,000.

  • Miscellaneous – $10,000.

You will need an estimate of nine hundred and fifty thousand dollars ($950,000) to successfully set up a medium scale but standard movie theater in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a movie theater with more than one cinema room within the same facility.  (Above info collected from www.profitableventure.com)

Create Your Final Presentation

FINAL PROJECT - MARKETING  CAMPAIGN  PITCH

For your final SUMMATIVE PROJECT, you will create a slides presentation that collects all of the projects you have built into your marketing campaign.

Your presentation will be 14 slides long, and should look very similar to the example shown below.  Please change the theme and fonts to match the tone of your Movie (comedy, action, suspense, thriller etc.)  Be consistent.

You CAN make a copy of my sample presentation, and then make it your own.  Be sure to change the name and content so that it is your own.

RUBRIC for Marketing Campaign Presentation

Click HERE to see an example, or just see below:

BE READY to PRESENT to the Class!

We will share out our presentations to the class on Thursday & Friday January 18th & 19th.

Your presentation will be 4-5 minutes in length. 

Homework - Finish assembling your presentation.  Submit it to Google Classroom.  Be ready to present during Lesson-12.