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Box office gross
Gross box office is total ticket revenue before anything is deducted — which is not what the cinema keeps, and often not what film rental is calculated on either.
Three numbers, routinely confused
| Figure | What it is | Who quotes it |
|---|---|---|
| Gross box office | Everything taken on tickets | Trade press and studio announcements |
| Net box office | After ticket tax, VAT and any statutory levies | Booking terms and settlements |
| Exhibitor share | After film rental is deducted from net | The cinema's own P&L |
Film rental is normally calculated on net rather than gross. Reading a percentage against the wrong figure is one of the more expensive arithmetic mistakes available in this business.
What survives to the bottom line
Work a ticket through. Tax and any levies come off first, leaving net. Around half of what remains goes to the distributor as film rental on a major title. What arrives at the cinema is a minority share of the headline price — before staff, rent, power, licences and equipment.
Which is the whole reason the industry's economics rest on concessions, advertising, hires and memberships rather than on tickets. Ticket revenue fills the room; the other lines pay for the building.
It is also why the deductibility rules in a booking agreement repay reading. What counts as net, which levies come off before the split, and how premium-format supplements are treated are all negotiated details that move real money, and they are easy to nod through.
Frequently asked questions
Is film rental charged on gross or net?
Normally net, after ticket taxes and levies. The exact definition is in the booking terms and does vary.
Why does the trade press quote gross?
It is the biggest number, it is comparable across territories, and it is what distributors report. It says very little about what any cinema earned.
Do premium format supplements count towards box office?
Generally yes, and how they are treated in the split is a negotiated point worth checking rather than assuming.
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