What occurs to the funds movie theaters make off of ticket sales? Question by Iron Man’s BFF
I’ve usually been told that movie theaters do not make money off of ticket sales. They make dollars off of their concession stands and other stuff.
So what do they do with the dollars they make off of ticket sales?
Very best answer:
Answer by Otto Mann
A large percentage of ticket sales goes back to the studio. The theatre keeps some, but it’s a little percentage. That’s why it costs so a lot to get a drink at the movie theatre: it’s a way larger source of income for the theatre.
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You know those huge production budgets you hear about for the big blockbuster movies? Your price of admission is a major source of how the studios recoup those costs. As the first person said, the theatres pay a large percentage of the box office receipts to the studio. The percentage is different for every movie, but it can be as high as 90% in certain situations.
Today it’s not as bad as in the past. It used to be that theatres would have to put up a large cash guarantee for the big block busters and they might have to bid against other theatres to get the movie in the door. I have heard of cases where theatres bid as much as 105%-110% of the box office gross to get a movie in the door.