Movie pricing?:(

**Epidemic** · February 4th, 2003, 09:04 AM

Ok here is the real life scenario.

Down in elizabeth city movies cost 4 bucks prime time.

Up in norfolk movies cost 10 bucks.

Same basic ratio on candy and such.

Now when MGM produces a block buster how do they charge for movies? If it is by seat then the little theater with fewer seats pays less but likewise can only let fewer people view.

The larger theater has more seats and therefore pays more and gets more money.

I would also guess that NYC would have some similar dynamics acting on it.

Why do tickets in NYC cost 14 bucks.

How does this work. Anyone anyone anyone.

shahani · February 4th, 2003, 09:27 AM

I think it works on the "ability to pay" scheme. Here, you can go to a middle klass neighborhood to see the latest for $4 and go a an exklusive suburb and see the same for $9.95 but the seats are better, the crowd is better dressed and so on.

Like apartment rentals in good areas and in seedy part of town.

Movie distributors charge on basis of territory which includes population demographics. They would charge less for a movie released in Podunk, Iowa

than downtown NYC, as an example.

**Epidemic** · February 4th, 2003, 09:34 AM

Ahhh but even podunk movies in new york city are huge in price. You go to the little crap theater or the regal and there is only about a buck difference.

It appears to be price fixing to me. Because these little rebel theaters are IMO the obvious base price. If a theater wanted more business they need only lower their prices and fill the house. You do not see most theaters trying to hit that full house mark. I guess if every movie is booked solid you might raise the prices based on supply and demand.

**surreal** · February 4th, 2003, 09:35 AM

Yeah but the popcorn prices are just as high.

**Epidemic** · February 4th, 2003, 09:47 AM

Look at the mark up on popcorn. Giant bag of popcorn is like 10 to 20 cents with butter at home. And we are talking Orvil Reds junk.

Man what a markup.

**mdroth** · February 4th, 2003, 09:50 AM

actually it works on a bidding system-

Theater chain bid on each movie enticing studios by promising multiple screens and certain run times and a specific amount of showings per day.

It as also based on a geographical location- ex. a Regal cinema within X amount of miles from an AMC theater cannot have the same movies. one or the other will get the winning bid, and have exclusivity to the showing rights in that area for a certain time frame.

Not to sure how it works on the smaller mom and pop theaters.
I think that most of them play second tier movies anyway (movies that have left the large theaters) so they probably just pay the fee to "rent" the print from the studio.

mike

**n3uxf** · February 4th, 2003, 10:03 AM

Movie theaters make their money off the popcorn and candy more than anything.

Mom and pop theathers work on the same sort of bidding concept.

shahani · February 4th, 2003, 10:06 AM

Mark ups in food business are indeed huge. A coffe costs 10c at home but even in cheapo places its 70c to $3 at Starbucks.

It's the way it is. Everything works along the supply demand curve.

**mdroth** · February 4th, 2003, 10:10 AM

yup.

When i worked at a theater- we paid 62.00 for a 5 gallon box of syrup( never could spell that one) for coke.

That box would last at least a week and a half if not longer.

Our small coke was 2.75 and large was 3.75- We would pay for that box of goop within 10-15 minutes of opening it. all the rest is profit.

and I was making minumum wage- sickening

**Epidemic** · February 4th, 2003, 10:16 AM

As for the Mom and pop theater I am looking at they are showing new releases of the block busters. They did starwars episode one the same day as the big name theaters.

I would like to see the proposed markup per expected seat sale.

Do not get me wrong. They own the theater and they have the right to rook you. You likewise have the right to wait for HBO.

PS I had fun watching resident EVIL last night. Kinda cool movie IMO. Sort of dawn of the dead with special effects and women who do not run away screaming every 5 seconds.

shahani · February 4th, 2003, 10:21 AM

I liked Signs better-its about the Crop Circles. Mel Gibson.

4 people saw it fro $2 DVD rental. Now that's value for money. The popcorn (microwave with extra butter) set us back 56 cents (2 bags) and beer another $4 for 5 cans

. Throw in $0.50 for the cokes the boys had and it was a good evening at under $8 all told.

Can't get that in a crummy theatre.

**Theophylact** · February 4th, 2003, 10:24 AM

New York, San Francisco have enormous real estate prices, so the theaters have to charge correspondingly high ticket prices. Not true at suburban malls. However, for popular movies, the distributors have been known to charge the theaters >100% of the box office -- so, clearly, they have to gouge on the refreshments. That's also why they ban outside food from being brought in.

I always go to the cheap show in the afternoon, myself.

**surreal** · February 4th, 2003, 10:28 AM

Oh NO!!! I'm frightended and confused!

I agree with Theophylact!

(hubba hubba I can't even imagine what the land the AMC theater in downtown Santa Monica is worth!) I prefer the afternoon shows too...

**no1_vern** · February 4th, 2003, 04:27 PM

Nope.

The theatre only gets 4-8% of the ticket gross. 10.00 ticket means they get 40 to 80 CENTS.

The rest of the ticket price goes to the distributor/maker of the movie. The high cost of the popcorn/drinks are pretty much all the theatre actually makes in the business.

The only way for the theatre to stay in business (as a business and not as a charity) is to raise the price of drinks/popcorn.

If you think that the theatres are making any real money-that isnt so, at best they are barely squeaking by and at worst they are like the theatres in my town - running under bankruptcy procedings(in other words-going out of business).

Vern

**Epidemic** · February 4th, 2003, 05:09 PM

The theatre only gets 4-8% of the ticket gross. 10.00 ticket means they get 40 to 80 CENTS.

That does not jive with the huge variance of ticket prices. From nice theater to crappy theater in the same region.

If I can vary the price between 14 bucks and 8 there would need to be more at work.

**Gomer** · February 4th, 2003, 07:50 PM

Just pay the prices and quit yer belly achin'.

The price for "intellectual property" is what the market will bear. That's what we're supposed to do regarding the music industry anyway right?

Hell, price fixing is the law of the land when it comes to ENTERTAINMENT. Be it CD, DVD, MTV, cable TV... you name it.

**Epidemic** · February 5th, 2003, 10:35 AM

It is their right but I am just surprised and the huge swing in prices and cant figure out why people do not buy the same product for cheeper at the old mom and pop shops.