How To Open A Cinema In Ukraine

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How To Open A Cinema In Ukraine
How To Open A Cinema In Ukraine

Video: How To Open A Cinema In Ukraine

Video: How To Open A Cinema In Ukraine
Video: How to open company in Ukraine and get temporary residence 2024, December
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The experience of cinema centers already operating in Ukraine allows us to speak about their 60% profitability and predict the annual growth of box office receipts. In Ukraine, as well as in Russia, cinemas are becoming a profitable business that allows both local and foreign companies to earn good money. Their interest is due to the quite feasible volume of primary investments required to open a cinema in Ukraine, according to economists, 300-400 thousand dollars are quite enough for this, which will pay off in 5-7 years.

How to open a cinema in Ukraine
How to open a cinema in Ukraine

Instructions

Step 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 - you will need several million dollars to implement the project. It is advisable to create a network of cinemas in large cities: Kiev, Kharkov, Odessa.

Step 2

The more cinemas will be included in your network, the cheaper it will cost you to maintain the management apparatus, and the faster you can reduce costs and develop a unified concept. In addition, you can save on the purchase and supply of equipment, as well as benefit from ad placement, since multiplex networks are of great interest to advertisers.

Step 3

Rent is one of the main expenses. Based on the experience of already operating cinemas, we can say that the most attractive place for a cinema center is a large shopping and entertainment center. Through this symbiosis, you can significantly increase the number of potential viewers. In addition, shopping centers have the opportunity to lease space at discounted rates, since they themselves are anchor tenants. In Ukraine, the cost of renting space for cinemas in a shopping and entertainment center is about $ 15 per square meter.

Step 4

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

Step 5

In addition to the rent, the fixed cost items are VAT in the amount of 20% of the proceeds from the screening 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 is box office receipts. They increase by more than 15% annually.

Step 6

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

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