As Secret Cinema Launches Crowdfunding Initiative, Is Its Business Model Working?

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For 14 years, U.K.-based immersive events company Secret Cinema has enabled fans to become part of their favorite movies by exhibiting classic films amid elaborate sets, actors and costumes. Now th…

has enabled fans to become part of their favorite movies by exhibiting classic films amid elaborate sets, actors and costumes. Now the company is letting fans become part of Secret Cinema itself by launching a crowdfunding initiative.

“For the last 15 months, we have funded the business on a combination of shareholder equity — our shareholders have been unbelievably generous with us — and a bit of government funding from the Arts Council grant that we’re incredibly grateful for,” says the executive. “We’ve probably spent £5 million basically keeping our team together over the last 15 or 16 months.”

“All our shows are profitable, at the show level,” Alexander says. “The reason we make losses is we’ve invested a lot in a team that’s able to build shows and new products that take you to other markets.” He says a conservative projection is that the business will break even between 2022 and 2023. Alexander is particularly optimistic because his projections don’t factor in many of the events he hopes will bring in new audiences. Secret Cinema put on its first North American event in Los Angeles last year, providing creative direction on. The show resulted in a number of “mega” musical artists reaching out to him, he says, and the company is also working on an as-yet unannounced video game-themed event, which they plan to hold at the end of the year in LA.

 

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