Distributor rentals

Distributor rentals

Box-office figures are reported in the form of either gross receipts or distributor rentals, the latter being especially true of older films. Commonly mistaken for home video revenue, the rentals are the distributor's share of the film's theatrical revenue i.e. the box office gross less the exhibitor's cut. Historically, the rental price averaged at 30–40% when the distributors owned the theater chains, equating to just over a third of the gross being paid to the distributor of the film. As of 1997 rental fees varied greatly, depending on a number of factors, with films from the major studios averaging 43% of gross receipts.