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kernsfamily -> RE: Fuel Prices and prices (6/4/2008 9:40:30 AM)
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quote:
I don't know many people that buy a new car yearly. As for movies, I went to one movie with my son a few weeks ago. I think it was $5 each. What I find criminal is not the cost of the movie, but the cost of the popcorn and drinks. It's the economics of movie theatre operations.....it's not so straight-forward. Let's say you run a theatre, and "Indiana Jones" comes to your theatre. Under the current "structure", on the first few weeks, the movie studios will take 70% of your admission revenue.....and you will take in 30% (which doesn't come close to covering overhead and other costs). Then each week after that, the theatres "share" increases by 10%. Thus, the movie theatre only realizes any kind of "profit" from admissions, when the movie is still going strong after about 4 weeks and longer (which those are sometimes far and few between)... thus, concessions are one of the few ways that a movie theatre operator is able to earn a consistent profit......and even with that, locally-based "Cinemark" (their HQ is around the corner from my house!), now in ownership of over 408 theatres, failed to earn a profit last year on revenue of nearly $2 Billion. Another thing: we all "expect" the latest, greatest digital sound/surround sound/DPL, stadium seating, and other amenities.....those are extremely expensive amenities that movie theatres are practically forced to provide (and pay for) to keep competitive with other movie theatres....it's "do it, or die".....especially in a competitive market such as here in Dallas. as for expensive popcorn and drinks....i'll pay for the popcorn, but my wife usually puts our 20 oz. bottles of sodas, which we bought on the way to the movies, in her purse.....and, AMC theatres here, DOES allow for "Free Refills" on popcorn when you buy the largest size (though, it's a real hassle to get a refill....especially after the movie has started).... Also, on weekends, AMC theatres here will have alot of movies with a start time before NOON....sometimes 2 starting times for a 'kids movie'....all showings before noon are $5. That makes it affordable to go see flicks such as "Wall-E" later this summer. (PIXAR rocks!) Regarding the "Studios" "revenue sharing" contract with movie theatres......many of you may have noticed that in the summer, many theatres do a "SUMMER MOVIE CLUB" program for kids....at 10 am on a wednesday, for instance, they'll do FREE ADMISSION for a good kids movie....a genius idea, since those showings do not involve "revenue sharing" with studios, and the kids are getting TONS and TONS of concessions (they sell a "combo pack" of a popcorn, drink and candy at a fairly reasonable price)...which, as previously mentioned, is really the only way theatres can even hope to cover their overhead and make a profit.
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