How do movie makers and movie theaters make money based off of a movie?

Question

I'm curious to know how revenue stream works for:1. The creator of the movie (movie production studios)2. The presenter of the movie (movie theaters)Is there a 50-50 split, or a lease agreement? This is regards to the movie itself, and not revenue from food/drink. This does also include trailers, do movie theaters make money for showing trailers to the movie?

Answer 1

Most of the money that the movie theater makes goes directly to the studio. There is usually a very small percentage that the movie theater keeps. During the first weeks that a film is released the majority of the tickets sales will go to the studio and usually something between 15%-25% will be for the movie theater. As the movie moves to the second or third week of being release the percentage of that the studio takes is smaller, therefore the percentage that the movie theater keeps is bigger (35% - 45%).

That being said, if you go to watch a movie on the fifth week of being release, most of the earning from your tickets will stay at the movie theater and just a small percentage will go to the studio.

Movie theaters make a lot of money from what they sell inside like popcorn, drinks, candies, etc.

I hope this answers your question.