Relativity could now produce and distribute its own movies and avoid the 12% distribution fee studios take out of ticket sales.

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Fox will take an 8% distribution fee like Paramount did in traditional markets and a 6% fee for digital distribution and electronic sell-through.

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Gross receipt royalties are prized because they come before the studio siphons off its "distribution fee, " which can amount to as much as a third of the gross.

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