Can someone explain me one thing. From the tickets sold by a movie in a certain location, how much stays to the owner of the theater, and how much goes back to the producers of the movie?
most business runs on the law of 3: if they charge you $3 they paid $1
Gross vs. Net
>Gross income includes all of the income your business earns during the year, while net income includes only the profit your business earns after you subtract business expenses and other allowable deductions from your gross income. If your net income is positive, then your business may have reportable capital gains. If your net income is negative, your business may have a deductible capital loss.
Calculating Gross Income
>To calculate your gross income, you must combine the total of all cash, checks, credit card charges, rental income, interest and dividends, canceled debts, promissory notes, kickbacks, damages and lost income payments your business received during the year. Even if your business routed the money to a third party, you must still claim it as income. You shouldn't deduct any expenses when calculating your gross income.
>>83836855
It's a sliding scale. It usually starts with something like 90% going to the producers on the first weekend. After that, the theater owners get a bigger and bigger cut as it keeps going.
That's one of the reasons why first weekend numbers are a big thing in Hollywood.
>>83836855
Depends how long its been out. Usually opening week most of the ticket sales go to the studio. Every week its out the theater gets a bigger percent of ticket sales.
>>83837134
makes sense now, I always wondered why they thought it mattered so much. But aren't theater owner getting screwed in the process?
>>83837766
They make their money off concessions. A tub of popcorn costs about 2 cents to make and sells for 10 bucks. Same with soda.
>>83837834
I never buy food at the cinema, I go to the restaurant for that. And I only go like 2 to 4 times a year. If everyone was like me, they would go bankrupt I guess. That's why they're is so many crappy blockbusters, it keeps the kids and families coming
>>83837766
>>83837834
I remember a story about Lucasfilm negotiating a 100% cut for the first weekend with The Phantom Menace. The theaters still took it because they knew they'd make bank with the concessions.