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V wrote: > "yeskay" <[EMAIL PROTECTED]> wrote in message > news:[EMAIL PROTECTED] >>> >>> >> I still don't get why it is an important statistic? Important for >> whom? >> > > Everyone who intends to make money from a movie, specifically the > distributor and the theatre owner. Consider the cost of running a > movie in single theatre and you would follow the rest. Follow what - can't this be the case ? Assume cost of running a movie in a theatre - X No of seats in a theatre - Y Revenue from every Z If movie is released in 1 theatre & it's house full then profit = (Y*Z) - X If released in 2 theatres & say it runs only 75% capacity in both. then profit = (1.5*Y*Z) - 2X For arbitrary values, X = 25 Y = 100 Z = 1 Profit1 = 100 - 25 = 75 Profit2 = 150 - 50 = 100 Case 1 had a higher per theatre average, probably made more for the individual theatre owner. Case 2 however had more overall profit for the distrib (assuming the same distrib for the 2 theatres) & more people watching the movie.
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