How do movie studios know that cinemas are paying them correctly?

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Movie studios get a percentage of ticket sales. How do they know that cinemas, especially small independent ones, are reporting their ticket sales correctly? Couldn’t a cinema just claim that a screening had 20 paying viewers when in reality they sold 300 and keep the entire extra revenue for themselves? Or do cinemas have to pay per screening regardless of how many people are in the cinema?

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Anonymous 0 Comments

I worked in a movie theater for 3 years and we had to save the ticket stubs and retain them for auditing purposes. All coupons or discounts had to be properly notated as well. Never once had we been audited while I worked there though. Just had a storage room filled with bags of movie tickets and coupons. I have no idea how long they had to be kept for. This was 2016-2019

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