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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The movie studio might not know. The IRS, though? Yeah, have fun explaining to them how you have the income of 300 tickets, but only paid the share for 20.
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