How to Obtain Rights to Show Movies in a Theater

If you want to start a cinema business and have the necessary funding, then you should not waste a moment. The major problems an individual faces are finding a suitable location for the business, lack of necessary investment, expertise in the field and choosing the right material. If you have overcome these obstacles and want to obtain the rights to show movies in a theater, then it will not be a problem for you but you should remember that the competition is very tough and the prominent organisations of the industry can make things difficult for you.

In order to obtain the rights to show movies, you will not only have to fulfil the legal obligations but you also have to build and maintain good relationship with the distributors. Movies can be leased in two different forms, set price or the percentage. In a set price, the owner pays a certain amount of money in advance and shows the movie for a predefined period. In contrast, leasing a movie on the basis of percentage means that the theater can run the movie as long as they deem it profitable and is considered a more flexible way. Showing a movie in a theater is not a difficult thing as most of the distributors are willing to support them.

Instructions

  • 1

    In order to show a movie in your theater, you would have to get in contact with the local distributor. There will be plenty of them in your local area, you should find them out and contact them. You can also take help of the other theater owners and enquire them about distributors. Feel free to take suggestions from other owners and contact the referred distributors as soon as possible. Beware of the unlicensed distributors, you should not do business with them.

  • 2

    Choose a distributor according to your feasibility and set your terms and conditions with him. If your business is new, then know that the percentage deal can be good for you, as you will be only paying a portion of your earnings instead of a predetermined fee before the start of the show.

  • 3

    You should sign a formal agreement with the distributor to avoid any unpleasant experience in future. After a few months experience, you will be able to decide what is better for you, fixed price or a percentage.

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