
Why do movies theaters charge
so much?
by Doc the
Gaffer
Most people are unaware that movie
theatres make their money primarily off their concession revenue.
The box office revenue goes to the studios making the pictures
leaving the theatres to sell popcorn and drinks to make a profit.
How much could the studios possibly take you might ask? In the first
few weeks of a film's theatre release the studios collect 90% of the
box office. This deal is gradually getting worse for the theatres.
Ten years ago it was 70%.
Let's check out some of the
numbers. Okay, Now lets say this average 8 screen theatre does a
good business of 3200 people on a great movie on
a Saturday in June. Now some of the theatre's films are more
than a few weeks old and the studios have loosened there grip on
them a little. They are giving up on average about 84% of their box
office total. If the average ticket price is $6.oo assuming they
have matinee prices, children and senior discounts then you must
admit that $6.oo is a fair average ticket price.
So 6
dollars x 3200 people is $19,200.oo, 84% of $19,200.oo is $16,128.oo
for the studio and $3,072.oo left over for the movie theatre. The
movie theatre is getting less than one dollar per person simply
because they are showing the most recent films.
This is why the smaller theatres you used
to go to now show what we call second run product. Second run
product is about as exciting as it sounds. Second run simply refers
to films that have already been released and finished their run with
the big distributors. The dollar houses often don't last long,
and you find yourself driving by one day and remembering when you
used to go there. In order to attract customers some of the smaller
theatres have had to switch to art films and more off the wall type
movies that you would not see at your local megaplexodeon.
No matter what type of films they are showing these
great old movie houses need your patronage before they become a
place you drive past and remember when you had the privilege to
attend a show there. What are you waiting for?