How The Movie Theatre Biz Works

“On opening weekend – and perhaps the second weekend of a big picture – the split is 70 percent to the distributor and 30 percent to the exhibitor. The studio’s share declines by 10 percent each week: first to 60 percent, then to 50 and 40, until it levels out at 30 to 35 percent for as long as the theater keeps the film. The studio wants a film to open huge, even if it doesn’t last long. Theaters, which earn much of their revenue from concession sales, prefer movies that will run all summer to full houses, with the theater ultimately taking 65 percent of ticket sales.”