Comments on: Economics Of The Movie Theater – Where The Money Goes And Why It Costs Us So Much http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much The Official Home of Correct Movie Opinions Fri, 10 Feb 2012 20:43:17 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Alex http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-304919 Alex Thu, 22 Dec 2011 13:48:12 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-304919 Can someone tell why the production companies do not own their own theaters, so they could get 100% of the profits? Can someone tell why the production companies do not own their own theaters, so they could get 100% of the profits?

]]> By: Jimmy Dean http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-294671 Jimmy Dean Tue, 15 Nov 2011 16:07:52 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-294671 "$25 million? who do you think your kidnapping Chelsea Clinton?" It is an outrageous market. It seems to stem from how much the actors etc demand etc, and know they can get it. I know personally what will ever keep me from going to the movies is the price of the tickets. I am only going to see a movie once in a while even if it is a big movie that I have been wanting to see if it is going to cost me $15 a pop and not a guaranteed good seat. At that point why don't I just wait until it hits the $1.50 theater, red box, or DVD. A ticket price $15 is normally what a DVD costs, I can watch a DVD as many times as I want. “$25 million? who do you think your kidnapping Chelsea Clinton?” It is an outrageous market. It seems to stem from how much the actors etc demand etc, and know they can get it. I know personally what will ever keep me from going to the movies is the price of the tickets. I am only going to see a movie once in a while even if it is a big movie that I have been wanting to see if it is going to cost me $15 a pop and not a guaranteed good seat. At that point why don’t I just wait until it hits the $1.50 theater, red box, or DVD. A ticket price $15 is normally what a DVD costs, I can watch a DVD as many times as I want.

]]> By: nick carse http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-292455 nick carse Fri, 21 Oct 2011 02:42:10 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-292455 who is to say somebody wont intentionaly act obnoxious and make a deal with some movie goers to get a deal himself who is to say somebody wont intentionaly act obnoxious and make a deal with some movie goers to get a deal himself

]]> By: Lazzo http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-292444 Lazzo Thu, 20 Oct 2011 22:13:31 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-292444 Just to throw in some up-to-date ticket price figures; The gf and I took our little boy to watch the Lion King 3D the other day and it cost UK £29.60 (currently $47) for us 2 adults and the child. We were intending to watch the 2D version (as 3D is ****) but we misjudged the times. The 2D version would have been £22 ($35). (Incidentaly the gf also insisted on spending £14 on 2 small cokes, 1 small popcorn and 1 ice cream!!..women.) Albeit a classic, I think this is an outragous price for 2 adults to take a child to see a childrens film and we would not have gone if we had known the price. We will not be going again, as I refuse to be party to this whole farcical business sector. I will not spend my hard earned money paying for the studios inefficiencies and the theatres ineptness. The only deffense the theatres have for not showing solidarity and banding together to confront the studios is the possibility that the studios might have enough money/credit to afford to wait them out (with films in the pipeline) until the theatres go out of business and the businesses or property leases are bought out by the top studios, who will then take 100% profit and have more freedom in ticket price structure. Are there regulations in place to stop studios having too much of a monopoly? I completely agree with this post in that the solution is for the theatres to band together and support one another. It is that simple. Put a universal price plan in place where they state that from a certain date (eg. June 2013) they will pay a set % to the studios (potentially based on the films predicted gross) but not anywhere near as high as the % the studios currently set, but at a price that will allow them to make a profit whilst keeping tickets at a price that will allow the theatre to be more affordable to potential customers and will drive the dwindling demand back up. Or... they can carry on independantly working themselves into bankruptcy with this unsustainable business plan. P.S. I'm 24, when I was a boy we used to go to the cinema every weekend for £1 a kid :) including pre-film entertainment (not adverts). Interesting read, cheers. Just to throw in some up-to-date ticket price figures; The gf and I took our little boy to watch the Lion King 3D the other day and it cost UK £29.60 (currently $47) for us 2 adults and the child. We were intending to watch the 2D version (as 3D is ****) but we misjudged the times. The 2D version would have been £22 ($35). (Incidentaly the gf also insisted on spending £14 on 2 small cokes, 1 small popcorn and 1 ice cream!!..women.)

Albeit a classic, I think this is an outragous price for 2 adults to take a child to see a childrens film and we would not have gone if we had known the price. We will not be going again, as I refuse to be party to this whole farcical business sector. I will not spend my hard earned money paying for the studios inefficiencies and the theatres ineptness. The only deffense the theatres have for not showing solidarity and banding together to confront the studios is the possibility that the studios might have enough money/credit to afford to wait them out (with films in the pipeline) until the theatres go out of business and the businesses or property leases are bought out by the top studios, who will then take 100% profit and have more freedom in ticket price structure. Are there regulations in place to stop studios having too much of a monopoly?

I completely agree with this post in that the solution is for the theatres to band together and support one another. It is that simple. Put a universal price plan in place where they state that from a certain date (eg. June 2013) they will pay a set % to the studios (potentially based on the films predicted gross) but not anywhere near as high as the % the studios currently set, but at a price that will allow them to make a profit whilst keeping tickets at a price that will allow the theatre to be more affordable to potential customers and will drive the dwindling demand back up.

Or… they can carry on independantly working themselves into bankruptcy with this unsustainable business plan.

P.S. I’m 24, when I was a boy we used to go to the cinema every weekend for £1 a kid :) including pre-film entertainment (not adverts).

Interesting read, cheers.

]]> By: Jay http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-292421 Jay Thu, 20 Oct 2011 15:57:29 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-292421 The person who speaks about the crowds. I have one thing to say. The theaters can't control them, they are your fellow people. Blame society not the theaters for others actions. The person who speaks about the crowds. I have one thing to say. The theaters can’t control them, they are your fellow people. Blame society not the theaters for others actions.

]]> By: Chuck http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-279979 Chuck Thu, 07 Apr 2011 20:56:17 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-279979 I just re-stumbled upon this message board. Heh. Every theatre will vary of course, but I'm figuring a 20 screen theatre with nice ammenities and a good attendance of around 1 million people per year. A theatre that doesn't do any business can get away with a lot less, but not be profitable. For example, at the 20 screen theatre I worked, on a weekday, we would have something like: 1 box office 1 customer service 1 coffee bar 2 concession 2 doorpeople (most theatres could use 1 - we had a bad design) 1 usher 2 managers (one to run the floor, one to do office type stuff) 2 projectionists (still running film and doing builds, teardowns, maintenance,etc) That's 12 shifts in the afternoon (11-5). Then the evening people would come in (5-close), and you'd have another 12 to replace them and you'd have another usher and concession worker). That's the minimum to operate our building. Keep in mind, this is during a slow period. These numbers get much bigger in the summer, so you have to average it out over the year. Obviously, an older theatre that isn't as nice wont have things like a coffee bar, or a customer service desk. If you don't care about cleanliness you can get by with one usher from 2-10 instead of one in the afternoon and two at night. Most theatres will only have one doorperson working at a time. Just to give a quick example of a Saturday night during a slow period, we would be looking at 3 boxoffice, 7 concession, 1 coffeebar, 2 doorpeople, 3 ushers, 2 managers, 2 projectionists. That's 20 people just on one evening, not factoring in Friday evening, Saturday afternoon, Sunday aftertnoon and Sunday night. Factor in the summer season when things get crazy, and the number jumps up even more. Keep in mind, I'm basing my numbers on a theatre that is doing good business. A theatre with the staffing you described is probably doing a fourth of the attendance. Also, I didn't include shifts for unloading deliveries, employee meetings, special screenings, birthday parties, orientation and training shifts for new employees, etc, all of which signifcantly add to the payroll number over the course of a year. We were also required to have security officers on the weekends for legal liability reasons. It wasn't a bad area, so these people basically got paid significant money to just walk around, the theory being that it's cheaper in the long run to not be held liable in court in the unlikely event of an incident. I just re-stumbled upon this message board. Heh.

Every theatre will vary of course, but I’m figuring a 20 screen theatre with nice ammenities and a good attendance of around 1 million people per year. A theatre that doesn’t do any business can get away with a lot less, but not be profitable.

For example, at the 20 screen theatre I worked, on a weekday, we would have something like:

1 box office
1 customer service
1 coffee bar
2 concession
2 doorpeople (most theatres could use 1 – we had a bad design)
1 usher
2 managers (one to run the floor, one to do office type stuff)
2 projectionists (still running film and doing builds, teardowns, maintenance,etc)

That’s 12 shifts in the afternoon (11-5). Then the evening people would come in (5-close), and you’d have another 12 to replace them and you’d have another usher and concession worker). That’s the minimum to operate our building. Keep in mind, this is during a slow period. These numbers get much bigger in the summer, so you have to average it out over the year.

Obviously, an older theatre that isn’t as nice wont have things like a coffee bar, or a customer service desk. If you don’t care about cleanliness you can get by with one usher from 2-10 instead of one in the afternoon and two at night. Most theatres will only have one doorperson working at a time.

Just to give a quick example of a Saturday night during a slow period, we would be looking at 3 boxoffice, 7 concession, 1 coffeebar, 2 doorpeople, 3 ushers, 2 managers, 2 projectionists. That’s 20 people just on one evening, not factoring in Friday evening, Saturday afternoon, Sunday aftertnoon and Sunday night.

Factor in the summer season when things get crazy, and the number jumps up even more.

Keep in mind, I’m basing my numbers on a theatre that is doing good business. A theatre with the staffing you described is probably doing a fourth of the attendance.

Also, I didn’t include shifts for unloading deliveries, employee meetings, special screenings, birthday parties, orientation and training shifts for new employees, etc, all of which signifcantly add to the payroll number over the course of a year.

We were also required to have security officers on the weekends for legal liability reasons. It wasn’t a bad area, so these people basically got paid significant money to just walk around, the theory being that it’s cheaper in the long run to not be held liable in court in the unlikely event of an incident.

]]> By: Nia http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-265791 Nia Sat, 13 Nov 2010 23:01:55 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-265791 Once the theatre screwed up their projector and it played Sugarland- All I Wanna Do and a fanta commercial over and over. We finally got to watch our movie and we got 25% discounts for next time. I hate that song now. My point being that theatres CAN and WILL give you a refund if they damn well please. Once the theatre screwed up their projector and it played Sugarland- All I Wanna Do and a fanta commercial over and over. We finally got to watch our movie and we got 25% discounts for next time. I hate that song now. My point being that theatres CAN and WILL give you a refund if they damn well please.

]]> By: chuck http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-264761 chuck Sat, 30 Oct 2010 06:12:01 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-264761 One thing I have picked uoon at the local cinema here in Vicksburg ms is this: management holds films over way too long. Case in point: the last excerism has been in Wilcox for almost three months now. Holding films over like this one for a long peirod time has created some problems. One some of the locals have been complaining about this; another fact the cinema owner appears to have a predjuice against Disney pictures. But to hold a summer film over into the fall is only going to make a cinema house lose profit. Another fact that: the local theatre hasn't gotten 3d tech to compete with his competitors in Jackson metro area. And none of the paranormal activity films didn't open here either I might add. A lot of the blockbuster films have bypassed this small market all together. One thing I have picked uoon at the local cinema here in Vicksburg ms is this: management holds films over way too long. Case in point: the last excerism has been in Wilcox for almost three months now. Holding films over like this one for a long peirod time has created some problems. One some of the locals have been complaining about this; another fact the cinema owner appears to have a predjuice against Disney pictures. But to hold a summer film over into the fall is only going to make a cinema house lose profit.
Another fact that: the local theatre hasn’t gotten 3d tech to compete with his competitors in Jackson metro area. And none of the paranormal activity films didn’t open here either I might add. A lot of the blockbuster films have bypassed this small market all together.

]]> By: Ponderer http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-257268 Ponderer Fri, 23 Jul 2010 18:05:30 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-257268 so this is why movie theaters charge a million bucks just for popcorn and soda, that explains a lot. so this is why movie theaters charge a million bucks just for popcorn and soda, that explains a lot.

]]> By: Joe Scot http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-254551 Joe Scot Mon, 21 Jun 2010 03:27:47 +0000 http://themovieblog.com/2007/10/economics-of-the-movie-theater-where-the-money-goes-and-why-it-costs-us-so-much#comment-254551 I like the way the movie industry works. I just go to a morning showing and never buy the overpriced food. Pretty cheap! I like the way the movie industry works. I just go to a morning showing and never buy the overpriced food. Pretty cheap!

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