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Ok, I understand how 90/10 is calculated, etc.

I'm still a bit fishy on when it comes into play. As I understand it...you only owe 90% when FILM X, all by itself, covers your entire weekly expenses. Is this correct?

In other words...as long as you show other films, 90/10 isn't hurting you so bad...

I take it that for the smaller houses it is rare for one film to cover the costs of operation for an entire week.

In 11 years at 2 theatres the 90/10 has kicked in less than a dozen times. Get your house nut up as high as you can then fugettaboutit. You'll be paying percentages most of the time.

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Michael Hurley
Impresario

90/10 has nothing to do with the total operating cost of the theater. 90/10 is used when the take to the film company is higher by you paying 90% of the ticket price -house allowance given to you than the x% of that week’s payment to the film company.

In other words if you owe more with no house allowance being used at 70% than you would owe with you getting house allowance and paying 90% on the remaining income for that particular show.

I have never done the calculation but the film company does every week they will let you know when you should have paid 90/10 insted of lets say 70%.