Movie Ticket prices

[Barry]

From the NY Times:
      By Brooks Barnes
Brooks Barnes has been covering the movie industry since 2007, when the average cost of a ticket was $6.88.

• March 5, 2023

Anyone buying a ticket for a concert, baseball game, Broadway play or flight has experienced it: Seats are now priced with dizzying complexity, with costs in some instances changing minute by minute, based on demand.
But movie theaters? In many ways, they have been trapped in pricing amber. A seat has cost the same no matter where it is or when it is bought.
No more.
As they struggle in a fast-changing business, multiplex operators — some carrying astounding debt because of pandemic shutdowns — have started to experiment with pricing in ways that have startled moviegoers. AMC Entertainment, the world’s largest cinema chain, is testing “sightline” pricing, giving seats at evening screenings different costs depending on their location. (Discounts of $1 to $2 for the neck-craning front row, increases of $1 to $2 for the center middle, status quo for the rest.) Chains have also started to charge more on opening weekends for expected blockbusters like “The Batman” and “Spider-Man: No Way Home,” with plans to ramp up the practice.
“It’s a taste of what’s coming,” said Stacy Spikes, who co-founded the subscription ticketing service MoviePass, which he plans to reintroduce nationwide this summer. “The big theater chains are gaining the technology to implement variable pricing on a wide scale. This may have near-term financial benefits, but it may also reduce attendance of younger customers who are more price sensitive and key to future growth.”
Increasingly, theaters have been pushing customers toward premium-priced specialty tickets. On Saturday evening at AMC Lincoln Square in New York, for instance, patrons interested in the boxing drama “Creed III” could choose from three IMAX screenings (a $7 to $11 surcharge, depending on seat location), three screenings with Dolby audio and visual technology and reclining chairs ($8 to $12 more), and two standard screenings ($18 for a regular adult ticket).
“I’m going to go, no matter what, because I love it, but sorting through all the options is starting to feel like a nuisance,” said Chris Ordal, a tech executive in Los Angeles. “I understand why chains are doing this, but they’re not doing a good job of communicating how it helps the consumer.”
Theaters have increasingly been pushing premium-priced specialty tickets for movies like “Creed III.”Credit...Eli Ade/MGM, via Associated Press
 
The move toward pricing complexity adds risk as theater owners look for ways to get people back into the ticket-buying habit after three pandemic-battered years. IMAX has been experimenting with live events, including concert simulcasts. Fathom Events has premiered episodes of a religious TV show, “The Chosen,” in theaters; episodes have generated $20 million at the box office since November, despite being available free online.
Prices may actually be going down for certain types of movies — ones that have struggled to attract ticket buyers in the streaming age, including comedies, conventional dramas and art films. Last month, theaters lowered opening-weekend prices for the octogenarian comedy “80 for Brady” to attract value-sensitive older customers. Tickets for evening screenings cost the same as a matinee, a discount of up to 30 percent, depending on the location. Some theaters offered the same deal for “A Man Called Otto,” starring Tom Hanks.
“In a business where the only innovation in pricing has been to go up, this is a good first step,” said Chris Aronson, the president of domestic distribution at Paramount Pictures, which released “80 for Brady” and urged theaters to lower prices.
“We’re hopeful that others will follow,” Mr. Aronson added, “and that this is hopefully the beginning of alternative ways of looking at pricing.” (Antitrust rules prevent studios from setting ticket prices themselves.)
 
Paramount spent about $28 million to make “80 for Brady,” which has so far collected about $40 million. Roughly 15 percent of the film’s target audience, women over 50, had not been to a theater in more than a year, according to exit surveys.
Charging less for certain kinds of movies and more for others has long been a Hollywood third rail, with filmmakers panicking that it will send a message about quality. Just try telling Martin Scorsese that tickets for his next prestige drama will cost less than ones for “Ant-Man and the Wasp: Quantumania.”
The difference now is that the theatrical marketplace has become so difficult for certain genres that many filmmakers may have no choice. Do you want your film to be seen in theaters? Or are you fine with it going straight to streaming, where it could get lost in the digital maw? If the answer is theaters, you may have to accept a discounted price.
The average movie ticket cost $11.75 in 2022, according to EntTelligence, a research firm. In New York, prices reach $28, depending on the format. A small popcorn at AMC Lincoln Square costs $10 with tax. (Fun fact: The average movie ticket price in 1969 was $1.42, according to the National Association of Theatre Owners. Adjusted for inflation, that ticket would cost $11.93 today.)
Because multiplex chains make most of their money from popcorn and soda, it is in their economic interest to keep ticket prices low; concession counters rely on foot traffic. But there isn’t much room to raise the price of popcorn anymore, prompting some operators to look at “creative” ticket pricing for growth.
 
It has been a tough stretch for theaters. More than 500 movie screens have closed since the start of the pandemic.Credit...Philip Cheung for The New York Times
 
Cinema attendance had been declining for decades, with people citing a variety of reasons for going less often: 50-inch TVs at home, streaming services, rude patrons who text on their phones when the lights go down. But the pandemic caused ticket sales to collapse in 2020 and 2021. More than 500 movie screens have closed since the start of the pandemic. Cineworld, the world’s No. 2 chain, filed for bankruptcy in September, and dozens of its Regal multiplexes in the United States have closed.
A recovery has been slower than expected. Cinemas in North America sold $7.5 billion in tickets in 2022, a 34 percent decrease from 2019, according to EntTelligence. This year, domestic ticket sales are running 24 percent behind the same period in 2019, according to Comscore.
The gap is expected to narrow this summer, largely because the flow of new movies is normalizing. Movies delayed by pandemic bottlenecks are finally ready. Studios are also rerouting fewer movies to streaming services. Twelve movies costing at least $100 million to make will arrive in theaters from May to July, up from six during that period last year.
“If you squint hard enough, it is possible now to see a return to the better days,” Robert Fishman, an analyst at SVB MoffettNathanson who follows the Cinemark multiplex chain.
Cinemark has comparatively little debt, but the hole for other theater companies is deep. AMC, which according to security filings has more than $5 billion in debt, said last week that it generated $990 million in the fourth quarter of last year, a 15 percent decline from 2021, and lost about $288 million.
To shore itself up, AMC has offered $5 movie tickets on Tuesdays, introduced home popcorn products in partnership with Walmart, enhanced its Stubs loyalty program, announced plans to turn some theaters into Zoom conference rooms for corporate events and invested in a struggling Nevada gold mine. (Yes, really.) Last month, AMC announced its pricing experiment with seat location, which it calls Sightline.
Adam Aron, AMC’s chief executive, characterized that move — charging a bit more for the best seats — as less a moneymaking gambit than a way to avoid broader price increases.
“In these inflationary times, we are coming under pressure to raise prices,” Mr. Aron said in an interview. “We could have raised prices on every seat in the house. Instead, we are holding the line on 75 percent of the seats in the house.” (Also, subscribers to AMC’s premium loyalty program, Stubs A-List, can book a “preferred” seat at no extra charge.)
Wall Street responded favorably. But cinephiles had a conniption. In a column, The Chicago Tribune’s film critic, Michael Phillips, called Sightline “a bush-league pickpocket move” and “the latest tiny nail getting tap-tap-tapped into the coffin currently under construction for an entire era of filmgoing.”
AMC has pushed back, noting that some European cinemas have charged a premium for prime seats for years. Yes, prices are high in New York and Los Angeles, Mr. Aron acknowledged. But he said 30 percent of AMC customers paid less than $8 a ticket.
“When you change the way an industry has priced itself for 100 years, it is not surprising that there is going to be lots of reaction,” Mr. Aron said. “It is our expectation that consumers will adjust to this very quickly.”
 

[David Vaughn]

My wife and I used to go to the movies 2-3 times per month 30 years ago--it was virtually our only entertainment when we didn't make a lot of money. We now go 2-3 times per year and it has nothing to do with the cost. It's the convenience factor. Now that I have a home theater, there's little incentive for me to go to the theater at an inconvenient time and both of us struggle to make it through a nearly 3 hours experience (when you factor in the trailers) without needing a bathroom break. When we went and saw the latest Avatar movie, I purposely didn't ingest any liquids two hours before the movie began and only let myself have a couple of sips of water with my popcorn and I made it through the entire movie (barely). My wife didn't...she had to miss a few minutes of the film

[bmoney]

Yeah so curious if they factor in cost of tickets and breaking box office records. 

[tripplej]

Going to the theater is no longer affordable for a family of 4. Now that premium seats are higher prices, this will only add to the additional costs of buying drinks and popcorn, etc. Also take into consideration, people making noise in the theater as well as the constant movement of people, going to theater is not worth it.

Also, not sure if it this is due to inflation but I see in the news lots of crime at movie theaters, in particular people breaking into cars to get items and/or going under the car to get the catalytic converter.

[Paul Heroy]

Going to the theater is no longer affordable for a family of 4. Now that premium seats are higher prices, this will only add to the additional costs of buying drinks and popcorn, etc. Also take into consideration, people making noise in the theater as well as the constant movement of people, going to theater is not worth it.

Also, not sure if it this is due to inflation but I see in the news lots of crime at movie theaters, in particular people breaking into cars to get items and/or going under the car to get the catalytic converter.

Well, IF they drop the price $1-2 for the less optimal seats, that would actually help the family right? Is the center spot really critical for that scenario? 

I get that most of us here are attracted to the premium seats as we're enthusiasts who want an optimized experience, but not everyone feels that way and that's what this is trying to address. As noted, similar to concerts where the really good/close seats command a much higher price. Occasionally I'll pay a premium but sometimes I'll get the cheap lawn seats, depending on the act.

[tripplej]

I must confess, I do like to sit in the optimal seating area to get the most out of the outing!

[Barry]

I must confess, I do like to sit in the optimal seating area to get the most out of the outing!

Me too!

[bmoney]

I can’t remember the last movie theater I went to. Lol been that long

[bmoney]

my kids have been recently with friends parents.  They said my theater is way better lol and they are only 11 and 8

[David Vaughn]

my kids have been recently with friends parents.  They said my theater is way better lol and they are only 11 and 8

You're raising them well

[bmoney]

You're raising them well

haha.  they ahvent watched a movie with me in there in a while though...rather talk/hang out with friends lol.  all part of growing up

[SRW1000]

Since building our house/theater about five years ago, we've only gone to the theater once or twice, and that was solely to avoid spoilers for new movies we were anxiously awaiting.

I'm going to roughly estimate that we spent about $30K for equipment (I'm not going to include construction costs for this, but that would probably be another $30K as part of the house).  If the average ticket price of $18 and considering that my wife and I watch about 100 movies per year, it would take almost 8 and a half years for the theater to pay for itself.  To get nitpicky, we could throw in extras on both sides:  Gas to drive to the theater, electricity to run all of our equipment, popcorn and soda, disc purchase/rental fees or streaming subscriptions, etc.  For the sake of this discussion, let's just call those a wash (although the savings in making one's own popcorn is probably the most significant).

Even at that long of a payback time, we have zero regrets about building our modest theater.  We no longer have to listen to other people's conversations, the floors aren't sticky, there's no smell of peperoni pizza wafting through the air, nobody has distracting cell phones out, all the seats are well-placed and comfortable, we're never late, and can pause as needed.  And while there's still trailers, their carefully curated by me specifically to fit the theme of that night's movie.

The one downside is that there's no shared experience with strangers, so that communal element is missing.  This can be good and bad.  Sure, there isn't the same level of electricity in the room during moments that deserve a rousing cheer, but then again there isn't some stranger snoring during a quiet soliloquy.  That shared feeling can legitimately help elevate a mediocre movie if the audience is into it; so instead, some of that shared experience gets transfered to forums like this in the reviews and subsequent discussions, which helps.

And the overall technical experience itself is better.  Sure, the commercial theater screen may be bigger, but if you take a critical eye to it, you may find that the quality pales in comparison to the home version.  I've been in theaters with obvious screen flaws that became annoyingly obvious with every camera pan, as well as black levels that can't compete with my older JVC projector.  And then there's the bass, where there's almost nothing under 30 - 40 Hz in the movie theaters local to us.

There's also the chance to have friends over that share your interests but may not have their own theater room.  Similar to bmoney's comment from his kids above, we recently had some friends over and I overheard one excitedly say to the other that if they had a room like ours, they would never leave.  That validated how we feel about our theater, and I have to admit it made me grin a bit.

I hope movie theaters continue to survive, even thrive.  After all, there are a lot of people that just wouldn't want to invest in a home theater, and they're getting a better experience than watching on their phone.  Plus, theater success still fuels a lot of what gets made, although that might be in the process of changing.  But with that said, I have a hard time imagining the two of us wanting to return to them.

Scott

[Craig Peer]

Since building our house/theater about five years ago, we've only gone to the theater once or twice, and that was solely to avoid spoilers for new movies we were anxiously awaiting.

I'm going to roughly estimate that we spent about $30K for equipment (I'm not going to include construction costs for this, but that would probably be another $30K as part of the house).  If the average ticket price of $18 and considering that my wife and I watch about 100 movies per year, it would take almost 8 and a half years for the theater to pay for itself.  To get nitpicky, we could throw in extras on both sides:  Gas to drive to the theater, electricity to run all of our equipment, popcorn and soda, disc purchase/rental fees or streaming subscriptions, etc.  For the sake of this discussion, let's just call those a wash (although the savings in making one's own popcorn is probably the most significant).

Even at that long of a payback time, we have zero regrets about building our modest theater.  We no longer have to listen to other people's conversations, the floors aren't sticky, there's no smell of peperoni pizza wafting through the air, nobody has distracting cell phones out, all the seats are well-placed and comfortable, we're never late, and can pause as needed.  And while there's still trailers, their carefully curated by me specifically to fit the theme of that night's movie.

The one downside is that there's no shared experience with strangers, so that communal element is missing.  This can be good and bad.  Sure, there isn't the same level of electricity in the room during moments that deserve a rousing cheer, but then again there isn't some stranger snoring during a quiet soliloquy.  That shared feeling can legitimately help elevate a mediocre movie if the audience is into it; so instead, some of that shared experience gets transfered to forums like this in the reviews and subsequent discussions, which helps.

And the overall technical experience itself is better.  Sure, the commercial theater screen may be bigger, but if you take a critical eye to it, you may find that the quality pales in comparison to the home version.  I've been in theaters with obvious screen flaws that became annoyingly obvious with every camera pan, as well as black levels that can't compete with my older JVC projector.  And then there's the bass, where there's almost nothing under 30 - 40 Hz in the movie theaters local to us.

There's also the chance to have friends over that share your interests but may not have their own theater room.  Similar to bmoney's comment from his kids above, we recently had some friends over and I overheard one excitedly say to the other that if they had a room like ours, they would never leave.  That validated how we feel about our theater, and I have to admit it made me grin a bit.

I hope movie theaters continue to survive, even thrive.  After all, there are a lot of people that just wouldn't want to invest in a home theater, and they're getting a better experience than watching on their phone.  Plus, theater success still fuels a lot of what gets made, although that might be in the process of changing.  But with that said, I have a hard time imagining the two of us wanting to return to them.

Scott

Since our home theater seats 6 easily and 8 close friends can fit on the sectional sofa, we still get that " crowd reaction " to things happening in movies. Our theater cost a bit more. If I ordered everything right now from AV Science ( at our discount prices ) and elsewhere ( things like the red velvet curtains, the sectional sofa, racks, etc. ) we easily have $85K in our theater, not including construction costs ( I hired out drywall and electrical ) and my labor ( framing, installing all the speakers etc. ). Totally worth it. We've gotten hundreds of hours of enjoyment over 15 years in this house and theater.
The last movie I went to with my wife was " Sex and the City " - what ever year that was. She saw Avatar last year. The last movie I saw in a theater was " The Martian " when I got dragged there by the gang during Cedia in Dallas - whatever year that came out. I could see screen texture when the movie panned. It looked better on my screen!

[SRW1000]

Since our home theater seats 6 easily and 8 close friends can fit on the sectional sofa, we still get that " crowd reaction " to things happening in movies. 

I agree, to a degree.  We can seat seven, and there is a different feeling when the room is full compared to when it's just my wife and me.  

But that feeling is dramatically less than if you're in a room of 50-100 strangers that all erupt with laughter, gasps, or tears.  Sharing that experience with people you don't know gives off a different feel than when sharing it with those you know, and likely share similar outlooks and perspectives.

Even so, I prefer our modest room.

Scott

[bmoney]

Yup. Just like seeing a comedian in person is wayyyyy funnier than at home