VIDEO THEATRE BUSINESS IN UGANDA

 VIDEO THEATRE BUSINESS IN UGANDA

Introduction

This business idea is for setting up a video theatre. A video theatre is a place where films and soccer matches are screened and viewers pay a certain fee for the service. Football matches, sports events, music shows and drams can also be shown in video theatre. The project cost is estimated at US$ 10,846 per year, operational capacity is estimated at100 people per day and revenue is estimated at US$40,180 per year.

 

Production process

The chosen video tape is inserted into a video player which is connected to a television screen for showing films .The video player, decoder and television screen need an electrical supply in order to function.

 

Capital Investment Requirements in US$

Capital investment item Units Qty @ Amount
Screen No. 1 800 800
Video player No. 1 80 80
Decoder No. 1 100 100
Air conditioners No. 4 200 800
Chairs No. 200 10 2,000
Computer No. 1 320 320
LCD Projector No. 1 500 500
Amplifier No. 1 500 500
Table No. 1 120 120
Total cost of machinery 5,220

Production and Operating Costs in US$

Cost Item Units @/ day Qty / day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Video CDS No. 0.6 8 4.8 124.8 1497.6
Subscription for Dstv 80 876
Subtotal 4.8 204.8 2,374
General costs(overheads)
Utilities(water and power) 200 2,400
Labour 150 1,800
Rent 200 2,400
Miscellaneous costs 75 900
Depreciation (Asset write off) Expenses 81 972
Sub total 706 8,472
Total Operating Costs 910.8 10,846

 

 

Project Product Costs and Price in US$

Item Period Shows per day Cost Per show Per show value TCs TR
Movie Per day 5 4 35 20 175
Per year 936 4 3,744 32,760
Soccer Weekend 4 4 35 16 140
Per year 212 4 848 7,420
Total per yr 40,180

 

 

Profitability Analysis in US$

Profitability Item Per day Per month Per Year
Revenue 128.8 3,348 40,180
Less production and operating Costs 34.8 903.8 10,846
Profit 94.0 2,445 29,334

Market Analysis

The market is readily available throughout the year and there is high demand during soccer seasons and holidays. Market for this business is mainly in urban centres and rural areas. The volume of patrons depends on the quality of service

Sources of materials: Raw materials are available in urban centres.

Government Facilities and Incentives

Government set up a Communication Commission which liberalized communication operations. Uganda is a free and liberalized economy.

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