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Originally Posted by betula
It's just like cable... you're paying money and they are still running advertisements. It stinks but it's another way for a theater to make money. When I used to work at a theater, I was told by the manager that the company basically doesn't make any money off the ticket sales. Perhaps that was because we were a small town market with lower ticket prices, but really, the studios get the gate. The theaters make money via concessions, which is why the prices are so high. Another way to make the money without gouging the customer is with pre-movie advertising.
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I've heard the same thing somewhere before. I specifically heard that the contract that movie theatres have with studios is that for the first 2 weeks of a movie's release 100% of the ticket prices go to the studios, then after that it goes down to like 90% (week 3), 75% (week 4), etc [roughly what I remembered].
Now that most movies don't last more then 2 weeks, the studios make a ton on $$$ but the theatres struggle to break even (especially after costs - equipment/wages/rent/etc). Then don't forget that the only way a theatre to make money is with state of the art equipment..... stadium seating, digital sound, even digital projectors.
It's pretty amazing that movie theatres even make money. (if they do that is)