The average movie ticket cost $11.75 in 2022, according to EntTelligence, a research firm. AMC charges $14-$18 per adult ticket & they are 5 billion dollars in debt. Investopedia reports that a whopping 60% of ticket sales go back to the studios.
The movie theater patrons of today are more sophisticated than those of previous generations. They expect digital quality picture & sound. They want plush comfortable seats which can cost the theater owner $1100 and up per seat. No more flickering images, noisy projectors, or those worn burgundy velour seats with the wooden arms you had to share.
Here is a breakdown of what modern movie theater equipment costs according to the top CEO’s of the most popular movie chains as reported by Indie Wire.
Media block: $7,000-$40,000
This helps convert the digital cinema package provided by a studio into data that can be projected with picture and sound.
Digital library server: $12,000-$27,000
These provide storage to hold multiple movies.
Xenon bulbs: $450-$1,300
Many out of date projectors require bulbs that need replacing after only 400-500 hours & use vast amounts of electricity compared to newer Laser Projectors.
Laser projectors: $40,000-$150,000+
State of the art with amazing clarity & huge savings in power consumption.
Screens: $3,000-$50,000
The upfront cost of installing an entirely new screen rather than just replacing one can reach up to $40,000-$50,000 for the largest PLF screens.
3-D Projection: $13,000
Many popular movies need to be shown in 3-D.
Dolby Sound: $75,000-$100,000
There’s also the cost of the Dolby Atmos sound systems.
And then you have to add in the costs of the building, maintenance, taxes, utilities, concession equipment, any loan payments, equipment upkeep (& depreciation), etc. Labor costs are going up and you need a small army of people to manage the equipment, concessions, cleaning crew, and so on.
So, if any of you Villagers have several million dollars just lying around & want to reopen a movie theater, here is your big chance. Just remember, the Morse family are the experts in making money & if there was money to made from the movie theaters, they would be doing it.
|