Mr. Krabs' main purpose of opening it was to get SpongeBob's penny. To enter, one needs to only pay a penny. The theater was popular, but not successful, however, since all Mr. Krabs had to offer the hopeful customers was a flip book made of dollar bills.
The outside of the Movie Palace has colorful floors and red doors leading to the inside. At both sides, movie posters are displayed on the wall. At the middle the theater has a green ticket booth. The inside was not shown, but it is assumed that it looks like any regular movie theater.