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 also hire 3rd party auditors where they not only count physical receipts and tickets, but also send a person who counts people in the theatre for a given release and they match up. That was my first job out of college. The auditing part, not the fun part.
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