The movie industry is a multibillion dollar industry and one that has been in existence for years. One of the many channels that movies get to be marketed is through movie cinemas where most of the premiers are done. However, cinemas are never packed all week long therefore one may wonder how they sustain such a business because surely, you can’t survive solely on screening movies. Well, they don’t. In this article, we are going to share with you the four ways a movie cinema makes money.
These are the 4 ways a movie cinema makes money.
1 Through ticket sales
Ticket sales are primarily the means through which a cinema earns most of its revenue. Generally, there are a number of different pricing models that the cinema may use when making an agreement with a content distribution company but at the end of the day, the cinema will benefit from the revenue generated from ticket sales.
2 Through the sale of snacks
Ever wondered why snacks are more expensive at the cinema when compared to how much the cost elsewhere? Well, it’s because the cinema relies on the sale of snacks to earn its revenue therefore they must mark up the price in a way that makes financial sense to them. Whenever you buy snacks at the cinema, always know that you are doing your part in helping them stay in business.
3 Through screening movie trailers
Movie studios will often pay cinemas to screen trailers of movies that are approaching release as a way of advertising as well as creating anticipation for the movie among the audience. This therefore provides an opportunity for the cinema to earn revenue.
4 Through advertising
Cinemas are always a great place to advertise for local business especially those targeting the movie loving customer segment. Cinemas will often charge advertising based on the audiences they promise to expose the advertisement to.
We trust that you are now well informed as to how your favorite cinema makes its money.
Feel free to share with us your reviews of the latest movies as well as your recent experience at the cinema.