Business of cinema: what it costs to open a cinema

Let’s start with the most important — how much it costs to open a movie theater?

The average opening of one hall of the cinema will cost between $100 to 150 thousand According to the level they will match Kiev “the Multiplex”. But costs can grow to infinity: chairs are more expensive, repair materials and so on. So there is no limit.

Photo: Boomer cinema, the opening of new halls

How did you find investors for their cinemas?

Here are all individually. I have all started with small volumes, so (the funding issue — ed.) was solved each time for individual tasks.

I didn’t have a specific “need a million dollars to the opening of the cinema”. Each time was a minor problem and was looking for tools. Somewhere working capital, it leasing, credit. Sometimes took money from their other businesses.

When you first come out?

In the second year of our work we were in the black.

Yet to scale the business difficult?

Not that difficult, just no money. When there was a crisis in 2014 and the dollar rose accordingly increased and the cost of imported equipment. Conventionally, the costs have tripled, and the cost of tickets over the past three years — 30%.

Before the ticket was worth about $6, now $3.

And should cost at least $5-6 is economically justifiable price that will allow it to develop.

What were the biggest challenges you faced?

Not to say that it was the problem, rather complex tasks. One of them is building audience. She stands in front of all the theater owners. How in Kiev, where there are already more than three dozen theaters, to entice the viewer to yourself? What unique features can we offer them?

And how did you solved this problem?

It was very difficult. We were down in the repertoire, we had small rooms.

At first, we won only due to the homely and cosy atmosphere.

Our feature — small rooms — we turned in dignity. And when we polled the audience, what they like most in our cinemas, in the first place was always cozy and comfortable. Because of this we attract families that have become our primary audience.

Photo: real Music hall, Blue hall “Tycoon”

What is the biggest item of expenditure at the cinema?

License movies. About 50% of income going to owners.

How to buy license?

On the market several distributors who work with the Ukrainian cinema. They act as intermediaries between us and copyright holders, predominantly American.

Served a number of questionnaires to determine — whether a cinema under the requirements of studios to work with the film. Besides the technicalities check possibilities of combating piracy — whether in the cinema special equipment.

In the world of camcording (record cinema — approx. ed) Ukraine still is one of the first places. Video is often recorded in Ukraine, and the sound separately in American cinema or Russian. Sound track record easier thrown unnoticed in the pocket recorder and all.

In addition, control of the integrity of the reports. Payment for the films is calculated after the fact, when I finished the movie. Available data, as the ribbon is gathered during the screenings. Received 50 thousand UAH — 25 go to the right owner.

There are tools, with which is checked, do not underestimate if the data in the reports. When you come to 100 people and reported over 70. If a distributor ever catches on this, the cooperation is terminated.

How do you fish?

There are many ways. Now popular online sale, the inspectors come to see the number of beds occupied, and then compare with the report. Or “secret shopper” takes a ticket, comes into the room, said the audience’s heads, and then checks the report.

What is your market share?

At the box office it is 0.5%.

You have movies in the movie theater appear along with Ukrainian Ministers?

Yes, this trend. The viewer is in the first week of the show and much less in the second or third.

With the development of social networks there were spoilers, so the viewer doesn’t really want to spend money on going to the movies.

In addition, the viewer also wants to Express their opinion about the movie.

Therefore, it is important to get to the point when the film is still in trend.

For the second week, the tape collects an average of two times less than in the first.

How easy or hard is it to work with the Ukrainian laws concerning the movie?

In recent years there has been significant progress in legislation, but more with an emphasis in filmmaking.

When they say that the Ukrainian cinema collects less than desirable — this is often the problem of insufficient number of cinemas. But in no way stimulated the emergence and development of new cinemas.

The only benefit — the state covers the interest on Bank loans for equipment for cinemas in towns and cities where less than 250 thousand inhabitants. But it still doesn’t have a procedure at the level of subordinate normative acts.

Until 2015 not charged VAT on the tickets, so 20% of the amount remained at the cinema. Now this rule no longer.

Although the film business in General is not gipermagniemii — most of the entrepreneurs engaged in it because they like the movie.

Earn a lot of this is almost impossible.

The market is developing and if the VAT exemption was returned, a new cinema began to appear in small towns, due to the additional money available to existing cinemas.