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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I was under the impression that 100% of the box office sales goes to the movie companies and the theater only makes money on concessions. Which is one of the reasons why the confessions are so high. I may be wrong though.
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