Archive | September, 2012

Why so Expensive?

28 Sep

Ever wonder why you’re spending almost thirty dollars on just yourself when you go to the movies? That is the current state of moviegoing, as it seems moviegoing is evolving into the equivalent of a pricey sporting event.  The moviegoing experience has changed; everything is expensive when you go to the movies.

Starting at the ticket booth, the price of an adult movie ticket for a non-3D movie is $11 and kids are $8.50. This is for non-3D and as everyone knows every movie is in 3D. Most 3D movies cost $15 for an adult and $11-12 for kids. This is the movie studio hiding reality from the public. The reality they’re hiding is if you wait six months before seeing the 80th Ice Age movie, you’ll save $20 dollars per person.

Most have caught on to this reality, which has culminated in movie attendance hitting all time lows. To hide this from people, they convert almost every movie into 3D, usually after it’s done filming, which often creates a bad effect that annoys the viewer instead of inspires.  This gives the movie studio an excuse to raise the price and inflate the box office numbers.

Since every movie is in 3D and most of them are lazily put together, viewers now demand non-3D versions of movies be offered and usually 60% of viewers choose this version over the more annoying expensive 3D version.

After buying your $10-15 ticket, you decide you want to get some food before you go in. Say you buy a medium popcorn and medium coke. That’s $10 at least; half of what those products would cost anywhere else. This isn’t the movie theater trying to screw you: it’s the movie theater trying to pay its bills.

Most believe the combination of movie tickets and concession pay for everything. However, the movie theater doesn’t own the movie they’re showing. The movie studios that paid for the movie do. So they take a majority of the box office sales that the movie made at the theater. On opening weekend alone, movies studios take 100% of the box office and then the percentage lowers after each subsequent weekend.

In the movie box office world, most movie studios only care about opening weekend because on average 25-30% of a movie’s total box office revenue comes from opening weekend.

There are ways to improve the theater going experience to make it at least worth spending all this money. First, if the movie is 3D, don’t sloppily convert into 3D film the movie in 3D. Films such as Avatar did this and Avatar is now the highest grossing movie of all time.

Second, make original movies.  How many Ice Age movies do you think people want to see? After a while people will get sick of it. So it’s obvious the movie studios are the ones who can improve the moviegoing experience that we all love so much.