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<v Speaker 1>Helping leaders motivate their people to a higher level of

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<v Speaker 1>performance through strong human relations, team building, and golajiving. This

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<v Speaker 1>is the seven Minute Leadership Podcast with your host Paul

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<v Speaker 1>fella Aledo. Hello everyone, and welcome to the seven Minute

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<v Speaker 1>Leadership Podcast. It's episode three point fifty three. Get your popcorn,

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<v Speaker 1>because today we're heading to the movies, not to watch one,

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<v Speaker 1>but to learn from the industry behind the silver screen.

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<v Speaker 1>The movie theater business is a fascinating blend of art, operations, licensing, logistics,

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<v Speaker 1>and yes, even leadership. Did you ever wonder why your

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<v Speaker 1>popcorn costs as much or more than your ticket, or

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<v Speaker 1>how theaters even get the rights to show blockbuster films? Well,

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<v Speaker 1>grab your over priced soda because we're about the peel

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<v Speaker 1>back the curtain. So let's start with the economics. Why

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<v Speaker 1>is movie theater popcorn so expensive. It's not just because

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<v Speaker 1>it's buttery and nostalgic. It's because concession sales are the

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<v Speaker 1>lifeline of most movie theaters. Here's the truth. When a

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<v Speaker 1>theater shows a new movie, especially a big studio release,

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<v Speaker 1>they only keep a very small percentage of the ticket

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<v Speaker 1>sales in the opening weeks. Depending on the contract, the

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<v Speaker 1>studio might take up to ninety percent of the box

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<v Speaker 1>office revenue during the first week of a film's release.

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<v Speaker 1>So if you buy a fifteen dollars ticket to see

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<v Speaker 1>the latest action blockbuster, your local theater might only keep

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<v Speaker 1>a dollar fifty of that. So where does the theater

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<v Speaker 1>make its money? The answer concessions that eight dollars popcorn

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<v Speaker 1>or six dollars soda or what keep the lights on.

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<v Speaker 1>The margins on those snacks are huge, but they have

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<v Speaker 1>to be They cover staff wages, electricity, maintenance, cleaning, and more.

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<v Speaker 1>Concessions or how theaters stay alive, especially when they're independently

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<v Speaker 1>owned or part of a small regional chain. So how

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<v Speaker 1>do theaters get movies in the first place. They don't

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<v Speaker 1>just magically appear on a hard drive. Movie theaters negotiate

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<v Speaker 1>licensing agreements with film distributors who represent the big studios.

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<v Speaker 1>Sometimes theaters have to commit to showing a film for

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<v Speaker 1>a minimum number of weeks. They may also have to

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<v Speaker 1>agree to strict terms about how many showings per day

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<v Speaker 1>they'll offer and in how many of their auditoriums. In

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<v Speaker 1>some cases, especially for smaller films or international releases, theaters

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<v Speaker 1>do have to pay a flat fee to get access

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<v Speaker 1>to that movie. In others, they pay percentage of the

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<v Speaker 1>box office earnings to the distributor, which is the more

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<v Speaker 1>common model for major releases. But here's the key. Theaters

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<v Speaker 1>don't own the movies. They rent them under very specific

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<v Speaker 1>and often demanding contracts. So what's the leadership lesson in

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<v Speaker 1>all of this? It's all about understanding your real revenue drivers,

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<v Speaker 1>your dependencies, and how to lead within those constraints. Too

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<v Speaker 1>many businesses and leaders focus on what looks good on paper.

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<v Speaker 1>The movies playing in the theater may be the draw,

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<v Speaker 1>the spotlight, the reason people walk through the door, but

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<v Speaker 1>the actual business engine is quietly humming at the concession stand.

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<v Speaker 1>Great leaders know where the real value lies. They don't

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<v Speaker 1>chase flash, They protect the foundation. Second leadership lesson here

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<v Speaker 1>is negotiate from a place of clarity. Theaters don't get

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<v Speaker 1>to set the terms for movie licensing. That power sits

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<v Speaker 1>with the distributors. But what they can do is oper

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<v Speaker 1>demise what is in their control, the customer experience, cleanliness,

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<v Speaker 1>staff performance, and maximizing per customer spend. That's the real game.

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<v Speaker 1>As leaders, we don't always control every variable, but we

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<v Speaker 1>do control how we adapt, how we execute, and how

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<v Speaker 1>we drive performance in our sphere of influence. The third

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<v Speaker 1>lesson smart leadership, balances short term sacrifices with long term gains.

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<v Speaker 1>Theater owners know they'll make almost nothing in the first

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<v Speaker 1>few weeks of a blockbuster, but if they can keep

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<v Speaker 1>the movie playing for four to six weeks, their percentage

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<v Speaker 1>increases over time. Same movie, same screen, bigger cut. They're

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<v Speaker 1>playing the long game, and you should be two. If

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<v Speaker 1>you're a leader and your team is struggling to hit

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<v Speaker 1>their goals, ask yourself. Are you focusing on your ticket

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<v Speaker 1>sales or your concession stand? Are you pouring all your

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<v Speaker 1>energy into what looks like the core business or what

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<v Speaker 1>actually pays the bills? The answer might surprise you. In

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<v Speaker 1>one final point, theaters often take risks on independent or

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<v Speaker 1>lesser known films to build relationships, draw a niche crowds,

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<v Speaker 1>and stand out from cookie cutter chains. That's a leadership move.

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<v Speaker 1>They're betting on something outside the mainstream to create long

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<v Speaker 1>term loyalty. Are you willing to do that the same

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<v Speaker 1>way they are, or are you only playing the hits.

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<v Speaker 1>Leadership is about knowing the business you're really in. It's

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<v Speaker 1>about making smart bets, negotiating well, and keeping the machine

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<v Speaker 1>running even when the spotlight is somewhere else. So the

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<v Speaker 1>next time you're at the movies and you cringe at

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<v Speaker 1>the seven dollars bag of Twizzlers, remember you're not just

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<v Speaker 1>paying for candy. You're paying for the chance to have

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<v Speaker 1>a theater still open the next time you want to

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<v Speaker 1>escape into another world. And that, my friends, is a

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<v Speaker 1>business model worth studying. This has been the seven Minute

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<v Speaker 1>Leadership Podcast, and I thank you for listening. For more

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<v Speaker 1>Paul Fell of Alito Podcasts, visit paulfellowalito dot com.