How to open a cinema in Ukraine

The experience of cinema centers already operating in Ukraine allows us to talk about their 60% profitability and predict the annual growth of box office. In Ukraine, as well as in Russia, cinemas are becoming a profitable business, making it possible to earn good money for both local and foreign companies. Their interest is caused by the feasible amount of primary investments necessary for opening a cinema in Ukraine, according to economists, 300-400 thousand dollars are enough for this, which will pay off in 5-7 years.

Instruction manual

1

If you decide to open a cinema in any Ukrainian city, it makes sense to immediately think about creating a network. This option has many advantages, although it is more expensive - for the implementation of the project you will need several million dollars. A network of cinemas is advisable to create in large cities: Kiev, Kharkov, Odessa.

2

The larger the number of cinemas will be included in your network, the cheaper it will cost to maintain the control apparatus, and the faster it will be possible to reduce costs, develop a unified concept. In addition, you will be able to save on the purchase and supply of equipment, as well as win on the placement of advertisements, since multiplex networks are of great interest to advertisers.

3

One of the main items of expenditure is rent. According to the experience of existing cinemas, it can be said that the largest attraction for cinema is a large shopping and entertainment center. Due to this symbiosis, you can significantly increase the number of potential viewers. In addition, shopping centers have the opportunity to provide space for rent at preferential rates, since they themselves are anchor tenants. In Ukraine, the cost of renting space for cinemas in the mall is about $ 15 per square meter.

4

It makes sense to equip the cinema with new modern equipment. It can cost quite a large sum of about 150 thousand euros, but the game is worth the candle - demonstrating films in 3D format is almost 10 times more cost-effective compared to conventional films.

5

In addition to rent, permanent items of expenditure are the payment of VAT in the amount of 20% of the proceeds from the demonstration of the film and the payment of half of the remaining amount to the distributor of the film. The main source of income, about 40%, for the cinema are box office. They increase by more than 15% annually.

6

The profitability of the cinema center will be facilitated by the organization in the lobby of the sales of popcorn, beer, drinks, various light snacks: chips, nuts. Now the income from their sale is about 30% of the total revenue of movie theaters. Another 20-30% of revenue may come from advertising. Do not be afraid of the Ukrainianization of film production, according to which all foreign films should be dubbed or subtitled in Ukrainian. The costs of this article are borne by the copyright company, and since the lion's share of the rental is made up of foreign films, movie theaters do not spend a lot of money on this.