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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Occasionally places get in trouble for cooking the books. The most recent I remember was the Washington football team. (The NFL has a fairly similar system to movie theaters where the home team keeps 60 percent of each ticket price and 40 percent goes to the visiting team.) They intentionally miscoded ticket sales in their computer accounting system to make them look like Kenny Chesney concert tickets (which didn’t have to be shared).
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