The cost of cinema tickets covers distribution of the reel (or digital copy if the cinema has a digital projector) and basically goes straight back to the distributor and the film makers. Which is good. But doesn't pay for the existence of the cinema, which makes its money through the sale of food and drink.
Not entirely accurate.
Payment to distributor is on a percentage of ticket sales, but it only kicks in once a minimum amount has been recovered from overall ticket sales to cover the cinema's fixed costs. The percentage varies from film to film, and depending how assertive the cinema is in their negotiations could see the distributor taking an 80% cut.
There are some awful films that the cinema will be under contract to show, for at least a minimum number of screenings per week, but this is part of the overall package agreed between the head office and the distributor.
In terms of concessions, cinemas need to inflate their prices to turn a profit, and they go for price over increased sales. Pence/spend per person is the key driver in concessions, hence the proliferation of combo deals and hot dogs (pointless food for cinema snacking IMO as they're gone in seconds). If anything, discount schemes like Orange Wednesdays erode the spend per person as those most likely to seek a bargain are those least likely to spend on concessions.
In terms of income spread over the year, the business forecasts will be driven on the anticipated performance of new releases, and so stock and staffing will be adjusted accordingly. It is still possible to turn a profit through the year while maintaining a consistent margin. The admissions will be down when there's nothing out, but so will the number of staff on the floor.
Do you mean "doesn't advertising make the cinema a profit"? Well probably not, no!
It does. Internal posters, slides, standees and audio/video tracks do contribute to the bottom line. While trailers increase potential future sales and are required by contract from the distributor, the actual paid-for advertising is separate to this and its benefit can be clearly measured.
Alasdair
Ex cinema manager