How do movies make money at box office?

making money movie
by Lisa

Question by Elias Alexander: How do movies make money at box office?
How does it work? Does the cinema pay producers after ticket sales or before???
Who gets the money?

Best answer:

Answer by AndeeVee
For the longest time the studios would make and distribute their own films. In the 1940’s the US government forced the studios to divest of their cinema chains, and so they began to just distribute films. The studio’s contract the movie making to private companies and guarantee the money to make them.

Then they will distribute the films to the cinema chains\companies and will charge a fee to allow a cinema to show their film. The studio takes the hit if the movie is a flop, but reaps large rewards if it’s a smash hit.

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