We always see the box office numbers but do the theaters purchase the rights to show the movie then they make money off ticket and concession sales? Or do the production companies and theaters split the sales?
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Depending on the contract with the movie distributors and how new a movie is, theaters only take in 30 to 40% of box office sales. Which is why you have to pay $7 for popcorn.
They have individual contracts for the license. Those can in theory be freeform and have any payment structure.
In practise they are mostly percentages of the sold tickets going to the studio wich slowly decreases the longer they are airing the movie. So the first week the theater earns less per ticket. So yes they split the income based on a contract
The studio makes a deal with the movie theatre company. Essentially the studio gets a large percentage of ticket sales (nearly 100% on opening week) and a lower percentage the longer the film is in theatres. Since people mostly see movies on opening week, the theatre doesn’t make much money off of ticket sales. Hence the inflated concession prices, as that’s their real revenue stream.
Theaters make all money off the concessions. Ticket sales are split between the production studio and theater, on a sliding scale. The first week it’s like 90% to studio, 10% to theater and each week it shifts —80/20, 70/30. So only when a minor is a big blockbuster with a long run does the theater start to see significant revenue from the ticket sales.
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