Is it true that studios get a bigger cut of the revenue from the opening weekend?
And it used to be true across the board that the opening weekend was when the biggest percentage of profits went to the studios. In the past, studios "strong-armed exhibitors into these front-loaded deals, wherein the overwhelming majority of the opening weekend take goes to the studio," says David Mumpower with Box Office Prophets. "As much as 90% of that revenue is theirs." The theaters only make money by selling "overpriced snacks" to audiences during that first week — but in the following weeks, the theater's cut goes up. Eventually, by the fourth week, the studio's cut has fallen to around 52 percent in most cases.
How much of the domestic box office revenue goes to the studios?
These deals often protect the theaters from movies that bomb at the box office by giving the theaters a bigger cut of those films. So if a film only makes $10 million at the box office, the distributor will get only 45 percent of that money. But if a film makes $300 million at the box office, then the distributor gets up to 60 percent of that money.
You can actually look at the securities filings for the big theater chains, to look at how much of their ticket revenues go back to the studios, points out Stone. So for example, the latest quarterly filing by Cinemark Holdings, shows that 54.5 percent of its ticket revenues went to the distributors. So as a ballpark figure, studios generally take in around 50-55 percent of U.S. box office money.
Is it better if a movie makes more of its revenue in the U.S.? According to the book The Hollywood Economist by Edward Jay Epstein, studios take in about 40 percent of the revenue from overseas release — and after expenses, they're lucky if they take in 15 percent of that number.