Movie pricing?:(

[Epidemic]

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.

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]

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.

Yeah but the popcorn prices are just as high.

[Epidemic]

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]

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]

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.

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]

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]

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.