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Originally Posted by heyal256
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)
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That is exactly how they work (I used to help run a movie theater). However, the price markup on the concessions is outrageous. A typical large bag of popcorn used to cost 50 cents to make (this was around '97, could be more now), and it sold for 4.00. Drinks were the same; that is where the money comes in, not from ticket sales. We didn't run ads then; I guess that is just the icing on the cake for theater companies now.