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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Similar question could be asked for virtually any agreement where a rev-share is involved but where there isn’t any easy to track the sales with absolute certainty.
In a lot of places it’s a mixture of good faith with the occasional spot check to keep people honest.
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