How do movies make money for the theaters and the production companies?

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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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Anonymous 0 Comments

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

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