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

this isnt the 1940s. sales are computer based. contracts are VERY tight. Breaking a contract would be theft and thus illegal. It would likely be discovered (if only by an underpaid employee who got pissed off at the manager), and would end that theater’s ability to show movies. n

its also worth noting the DCPs can only play at very specific windows pre-determined with the studios, otherwise they wont decrypt. So its not possible to run extra shows or even screen a movie for your buddies after hours.

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