The 'limited' theatrical release of Sony Pictures "The Interview" will most likely yield nice profits for the studio even though it will open in roughly only 200 theatres. The film was produced with the intention of being released under the 'wide-multiple saturation' release pattern- a pattern intended for well publicized and well anticipated "A" list star movies and/or big budgeted action movies and, of course, is the ultimate aim of big studio commercial distribution. This pattern, to 2,000 or more theatres or screens simultaneously nationally, can produce millions in revenue alone. A film released limited to 200 theatres generally won't make a profit in those theatres, but count on a standard accounting practice called 'cross-collateralization.'

Under this rule of distribution a studio or distributor , major (like Sony) or mini-major (like The Weinstein Company) can now legally offset financial losses in one medium or market with profits from another. For example,  if the theatrical income is at a loss, then homevideo, cable, pay-per-view, foreign revenue, etc. can be allocated to make up for the theatrical loss.

The limited release just merely greases the axle providing critical reviews and interest in the film. Thus, people will then be eager to watch on cable, pay-per-view, On-Demand, purchase it, etc. The interest for foreign sales will also escalate by the limited release since it is still considered a theatrically released motion picture-  worth more than just a cable or straight to video title. 

These ancillary rights are the real money makers for many of the films we see. Even film merchandising can many times make more profit than the paid viewings of an actual film. 

For Sony's "The Interview"-  the publicity (free vs. paid advertising) for the past two weeks will undoubtedly work in it's favor. The earlier reviews were tepid at best which have killed many motion pictures. But with publicity like this-  the audience, even though knowing the film may be mediocre, will feel familiar with the film and feel compelled to see it. 

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