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They do lose out, because they don't get 10% of the $20, so they don't make any more money, but they also win. For a home release of a film, it gives the theater and filmmaker a guaranteed rent day buy, AND it may bring in more customers.

Your last statement "yes, the theater would make more money" is true. But the theaters don't make MORE money per ticket. They don't make a profit at the box office as a rule. They get what is called the "theatrical" price. The box office is a loss center, where entry fees get his money back, and the profits go to the production companies.

Theatrical distributors pay the theater 50 cents' commission, after the theater passes it on to the production company. So, if theaters make 10%, that's 5 cents on a dollar, minus the costs of tickets, lighting, projection, etc. and a dollar for the theater. If the theater makes $10,000 per seat, that leaves them $50 per ticket.

Theatrical distributors collect about 90% of the revenue, so it's about 10% left for theater owners, after the theater pays for one-third of the tickets at $10 or $15 for each, and loses money on the box office. d2c66b5586

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