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For those in larger countries, I would invest in the industry level digital projection equipment. This is what the rights holder will deliver prints on. For those in smaller markets, Go with Blu-Ray projection. A Blu-Ray projector will compensate for all the glitches created by self-replicated dvds. The problem is you can now create your own Blu-Ray discs which then risk causing the same problems regular dvds caused with dvd players.
When you approach the distributor, inform them how many seats your venue has, how many shows a day you plan to have, what the ticket price will be, and how you will be advertising the film. The major studios (ie. Disney) will take as much as 90% of the box office on major films opening weekend, that percentage drops the longer the run is. What you should propose is a 50/50 split of revenue with no deductions for expenses.
As the equipment availability varies within each country, you should research the companies that supply corporates with technology and lease projectors from them as they will replace them if there's a problem. If you cannot get a replacement projector then you can't show movies when the equipment breaks down. If you're going to buy equipment, have a backup projector and playback device on hand in reserve.
Not every projector will work for you. Study the specs carefully as the throw (distance from projector to screen) varies based on model. If your purchase the wrong one you've just wasted money. A movie theatre makes most of it's money from the concession stand. Brand yourself with the food selection and the types of film you play and you will get repeat businesses. Just remember that messy food means messy cleanups.
The easiest way to get a distributor to work with you is to settle up within 48 hours of the run ending (or weekly if the run will be more than one week). We distributors spend way too much time trying to get paid from people who run a cash business and for some reason always claim they don't have the cash to pay right away. If you're fair and honest then distributors will work with you. You may want to propose paying a flat fee up front for the week's run. Some distributors may be amenable.
Remember that you don't have to spend a lot of money to promote your film schedule. Posters on the walls, weeks in advance if possible, local media and social media marketing are all cost effective and cheap. If you can set up a website and a weekly newsletter email server your audience will come.
Feel free to contact me. Peter Hargrove tvsales@HargroveTV.com
@das p, what kind of experience you have in this industry? If you don't have any experience then start working in a production house to garner some experience. This business is not for them who have no experience. If you are totally on it and you have no experience then invest your money through shares on big production companies or find a profit share option.
Raghunath Natarajan
Startup Biz Hub - Advisor (Staff)
ravindermalik21@gmail.com || Multiplex Expert