Often, a new release will only be leased to a theater that can play the film seven days a week. This is because many studios place specific requirements on leasing their films to theaters. As a small theater, booking new releases can be difficult. Over time, you may choose to take this responsibility on yourself.
Because this process can be complex, it’s best to hire a booking agent to assist you in the early days of running your theater.
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How do I get the license to show films? Movie theaters obtain licenses to show films through film distributors. However, you must take into account the level of demand in your area and how profitable older movies will be, even in the face of lower licensing fees. Second-run and classic movies can be a good option for drive-in theaters as they are often easier to obtain than new releases. How much does it cost to license a classic film? The cost to license a classic film will also vary depending on the specific movie, but will generally be lower than new releases. It will typically be around 50%, but big name new releases will often fall on the higher end during opening days or weeks with the fee gradually reducing over the life of the theater run. The licensing fee is typically paid as a percentage of total ticket sales, with a minimum flat fee required. How much does it cost to license a new film? The cost to license a new film will vary from film to film. Lot maintenance will also take up a large chunk of your expense spreadsheet. You will be placing weekly orders for concession supplies. Film rentals are a controllable expense as you can opt for second run flicks at a much lower rate. Your payroll will be a major expenditure. What are the ongoing expenses for a drive-in movie theater? To remain FCC compliant, you will need to purchase a Part 15 FM transmitter. You will need a different radio frequency for each screen.
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You will also need to have a supply of portable radios to rent out to those unable to receive sound through their car radios.
This allows you to deliver film audio to patrons through their car radios. To use this system you must select an FM frequency not in use and plug your FM transmitter into your projector’s audio output. How do I get an FM station to play the audio? The most common way to handle audio in a drive-in theater is use of an FM radio transmitter. You will generally need to have a screen professionally constructed and installed to meet wind-load requirements. Most screens are made of steel and anchored in concrete. How much is a projector screen? A quality projector screen for your drive-in theater can cost anywhere from $50,000 to $250,000 depending on your area and the specific local requirements. Because not all old movies are available in digital format, if you plan to show classic movies you may also want to purchase a 35mm projector. Barco, Christie, and NEC are the three main cinema projector manufacturers today. This will be one of your larger expenses, as digital projectors typically cost between $75,000 and $150,000 per screen and must be professionally installed and calibrated. What kind of projector do I need? Because most film studios have begun releasing movies exclusively in digital format, digital projectors have become essential to successful drive-in theaters. Some localities have zoning requirements in place to prevent traffic from building up along the road or highway leading into the theater. You will also need to consider the space required to funnel cars off the road and through the box office. This should allow up to 500 cars to park at your theater. How many acres do I need to lease or buy? The typical drive-in theater requires between 10-14 acres of land. Expect to invest between $250,000 and a million to develop the property including building a projection house, concession stand, sound system, and playground. You won't be able to use old projection equipment, as the industry switched to a digital platform in the last decade. You will need about 10 to 14 acres of land ready to be developed or you may find an abandoned drive-in up for sale. What are the costs involved in opening a drive-in movie theater? Luckily we have done a lot of this research for you.