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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Movie studios use a system called box office reporting to make sure cinemas pay them the right amount. Cinemas have special computer systems that count the number of tickets sold for each movie, and they have to report this information to the movie studios. Sometimes, movie studios send people to check the ticket sales and compare them with the actual number of people who attended. If a cinema cheats, the movie studio can impose penalties or stop allowing them to show their movies.
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