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How to Obtain Rights to Show Movies in a Theater

Obtaining the rights to show movies in a theater is achieved through a local distributor. There are two major types of leases for movies: the set price and the percentage. The first is a prepaid fee to show a movie for a determined amount of time, and the second is more flexible, since it allows theaters to show movies for as long as they are profitable. Movie distributors make it possible for theaters to show films, and the process is a simple one.

Instructions

    • 1

      Find a move distributor in your local area. You can do this by speaking to local movie theater owners. Check the credentials of the distributor to determine his legitimacy. Ask for references from other movie theater owners. Any valid distributor will be happy to provide these. Call the references provided. Unlicensed distributors can seriously jeopardize your business.

    • 2

      Agree a deal with the distributor, based on either percentage or fixed fee. If you are a new business, then a percentage deal may be better, since you only pay a section of the money you take, rather than a set fee, which may cause you to make a loss. Select the films you wish to show based on the character and the clientele of your theater. For example, a theater in a college town will attract younger customers and should select movies accordingly.

    • 3

      Sign the contract with the distributor based on payment type, and you will have the rights to show the movie for a given time. Once you have shown a few movies, you will begin to get an idea of potential profit, the length of time you should show a movie and the times of day they should be on. This will help you work out if fixed fee or percentage is a better deal.

Film Production

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