Why do popcorn and drinks cost so much at the movies?

[JohnCU]

I mean, how much do you really think it costs to make popcorn? I went last night to see Dodgeball and it was $8 for a large drink and medium popcorn. I know that people buy them anyway, but the prices are insane...

 

[thirtythree]

Originally posted by: JohnCU
I mean, how much do you really think it costs to make popcorn? I went last night to see Dodgeball and it was $8 for a large drink and medium popcorn. I know that people buy them anyway, but the prices are insane...

that's why.

 

[HappyPuppy]

Theaters don't really make much from ticket sales. Their big profit comes from the concession stands.

 

[z0mb13]

PROFIT!

 

[JohnCU]

Oh.

 

[z0mb13]

Originally posted by: HappyPuppy
Theaters don't really make much from ticket sales. Their big profit comes from the concession stands.

can u back this up with stats??

really interesting...

 

[Taggart]

I don't think the theater makes any money off tix. Doesn't all their money come from concessions?

All of the ticket sales goes to the distributor?

 

[thirtythree]

Originally posted by: z0mb13

Originally posted by: HappyPuppy
Theaters don't really make much from ticket sales. Their big profit comes from the concession stands.

can u back this up with stats??

really interesting...

didn't actually read the article but this might have some... Text

 

[z0mb13]

I still cant believe that theaters dont make significant profit from ticket sales...

 

[z0mb13]

Originally posted by: thirtythree

Originally posted by: z0mb13

Originally posted by: HappyPuppy
Theaters don't really make much from ticket sales. Their big profit comes from the concession stands.

can u back this up with stats??

really interesting...

didn't actually read the article but this might have some... Text

thanks that was a good read

 

[SackOfAllTrades]

Originally posted by: z0mb13
I still cant believe that theaters dont make significant profit from ticket sales...

bittorrent, foo

 

[RagingBITCH]

It's common knowledge that concessions are where most of the profits come from.

 

[digitalsm]

Originally posted by: z0mb13
I still cant believe that theaters dont make significant profit from ticket sales...

Its quite simple. Theaters lease the films at about $250k a print. They then give the studios most of the box office. Once the film is on its way out the door, the theaters get larger chuncks of the box office. Most individual theaters only make a profit on blockbusters that have legs, like Shrek 2. They break even on some, but eat losses on most. Blockbusters that fizzle, hurt movie theaters more than movie studios. This is why there has been a lot of consolidation in the theater biz, and a lot of bankrupts= individual theaters as well. Of course over saturation during the mid-late 90's didnt help matters either.

 

[z0mb13]

Originally posted by: digitalsm

Originally posted by: z0mb13
I still cant believe that theaters dont make significant profit from ticket sales...

Its quite simple. Theaters lease the films at about $250k a print. They then give the studios most of the box office. Once the film is on its way out the door, the theaters get larger chuncks of the box office. Most individual theaters only make a profit on blockbusters that have legs, like Shrek 2. They break even on some, but eat losses on most. Blockbusters that fizzle, hurt movie theaters more than movie studios. This is why there has been a lot of consolidation in the theater biz, and a lot of bankrupts= individual theaters as well. Of course over saturation during the mid-late 90's didnt help matters either.

and why did movie theaters take the short end of the stick??

IMO its kinda dumb.. giving away 80% gross to movie producers?? doh...

 

[SackOfAllTrades]

Originally posted by: z0mb13

Originally posted by: digitalsm

Originally posted by: z0mb13
I still cant believe that theaters dont make significant profit from ticket sales...

Its quite simple. Theaters lease the films at about $250k a print. They then give the studios most of the box office. Once the film is on its way out the door, the theaters get larger chuncks of the box office. Most individual theaters only make a profit on blockbusters that have legs, like Shrek 2. They break even on some, but eat losses on most. Blockbusters that fizzle, hurt movie theaters more than movie studios. This is why there has been a lot of consolidation in the theater biz, and a lot of bankrupts= individual theaters as well. Of course over saturation during the mid-late 90's didnt help matters either.

and why did movie theaters take the short end of the stick??

IMO its kinda dumb.. giving away 80% gross to movie producers?? doh...

haha yea, why pay the people that actually made the movie...

 

[z0mb13]

Originally posted by: SackOfAllTrades

Originally posted by: z0mb13

Originally posted by: digitalsm

Originally posted by: z0mb13
I still cant believe that theaters dont make significant profit from ticket sales...

Its quite simple. Theaters lease the films at about $250k a print. They then give the studios most of the box office. Once the film is on its way out the door, the theaters get larger chuncks of the box office. Most individual theaters only make a profit on blockbusters that have legs, like Shrek 2. They break even on some, but eat losses on most. Blockbusters that fizzle, hurt movie theaters more than movie studios. This is why there has been a lot of consolidation in the theater biz, and a lot of bankrupts= individual theaters as well. Of course over saturation during the mid-late 90's didnt help matters either.

and why did movie theaters take the short end of the stick??

IMO its kinda dumb.. giving away 80% gross to movie producers?? doh...

haha yea, why pay the people that actually made the movie...

in other businesses, a good example being supermarkets, the power is held by the seller..

the distributors of products actually have to pay the store owners to even stock their goods.

if the movie theaters consolidate and work together, they will have more bargaining power, thus can bargain a better deal..

 

[jst0ney]

Originally posted by: SackOfAllTrades

Originally posted by: z0mb13

Originally posted by: digitalsm

Originally posted by: z0mb13
I still cant believe that theaters dont make significant profit from ticket sales...

Its quite simple. Theaters lease the films at about $250k a print. They then give the studios most of the box office. Once the film is on its way out the door, the theaters get larger chuncks of the box office. Most individual theaters only make a profit on blockbusters that have legs, like Shrek 2. They break even on some, but eat losses on most. Blockbusters that fizzle, hurt movie theaters more than movie studios. This is why there has been a lot of consolidation in the theater biz, and a lot of bankrupts= individual theaters as well. Of course over saturation during the mid-late 90's didnt help matters either.

and why did movie theaters take the short end of the stick??

IMO its kinda dumb.. giving away 80% gross to movie producers?? doh...

haha yea, why pay the people that actually made the movie...

 

[SackOfAllTrades]

Originally posted by: z0mb13
in other businesses, a good example being supermarkets, the power is held by the seller..

the distributors of products actually have to pay the store owners to even stock their goods.

if the movie theaters consolidate and work together, they will have more bargaining power, thus can bargain a better deal..

supermarkets are actually a bad example

they have power because brands A, B, C, D and E are from different companies thus they all fight each other for exposure.

theatres, ultimately just have the MPAA do deal with, so much of the fight for exposure does not exist.

The MPAA can choose whatever theatres they want to have show their movies.

 

[jadinolf]

Originally posted by: thirtythree

Originally posted by: z0mb13

Originally posted by: HappyPuppy
Theaters don't really make much from ticket sales. Their big profit comes from the concession stands.

can u back this up with stats??

really interesting...

didn't actually read the article but this might have some... Text

Thanks for that. I have always wondered.

 

[Yossarian]

1. Disallow outside food or beverage.
2. ......
3. PROFIT!

 

[z0mb13]

Originally posted by: SackOfAllTrades

Originally posted by: z0mb13
in other businesses, a good example being supermarkets, the power is held by the seller..

the distributors of products actually have to pay the store owners to even stock their goods.

if the movie theaters consolidate and work together, they will have more bargaining power, thus can bargain a better deal..

supermarkets are actually a bad example

they have power because brands A, B, C, D and E are from different companies thus they all fight each other for exposure.

theatres, ultimately just have the MPAA do deal with, so much of the fight for exposure does not exist.

The MPAA can choose whatever theatres they want to have show their movies.

but if the theaters work together, they can also choose which movies to show, no?

IMO its kinda unfair the movie theaters gets shafted almost every time..

if a movie does semi poorly, movie producers can still break even, but chances are movie theaters will get the shaft..

if a movie does very well, movie producers will make tons of money, and this is the only chance that movie theaters can make significant profit..

 

[Ketteringo]

I used to work at a movie theater as a cashier. According to a manager tehre, depending on the studio, they broke down how much the studio got by how long the movie was out. i.e.:

1st week= ~70%
2nd week = ~50%
all other weeks = ~30%

Those arent exact numbers, but you get the general idea. It also shows you why move movie studios push for huge first week crowds.

 

[z0mb13]

Originally posted by: Ketteringo
I used to work at a movie theater as a cashier. According to a manager tehre, depending on the studio, they broke down how much the studio got by how long the movie was out. i.e.:

1st week= ~70%
2nd week = ~50%
all other weeks = ~30%

Those arent exact numbers, but you get the general idea. It also shows you why move movie studios push for huge first week crowds.

why cant the theaters negotiate an even 50% for all weeks??

 

[digitalsm]

Originally posted by: z0mb13

Originally posted by: Ketteringo
I used to work at a movie theater as a cashier. According to a manager tehre, depending on the studio, they broke down how much the studio got by how long the movie was out. i.e.:

1st week= ~70%
2nd week = ~50%
all other weeks = ~30%

Those arent exact numbers, but you get the general idea. It also shows you why move movie studios push for huge first week crowds.

why cant the theaters negotiate an even 50% for all weeks??

Why? Because studios spend millions on making and advertising the movie.

 

[SackOfAllTrades]

Originally posted by: z0mb13

but if the theaters work together, they can also choose which movies to show, no?

IMO its kinda unfair the movie theaters gets shafted almost every time..

if a movie does semi poorly, movie producers can still break even, but chances are movie theaters will get the shaft..

if a movie does very well, movie producers will make tons of money, and this is the only chance that movie theaters can make significant profit..

well theoretically they can...but the MPAA is intimidating and all it would take would be just 1 theatre company saying no, not wanting to work together which would result in a possibility that that theatre company would get preferential treatment from the MPAA. (Imagine MPAA giving 1 theatre company the movies 1 or 2 weeks before the other companies get them.)

true you have a point of producers and how much they make, but theatres have worked a long time to establish a trust from the MPAA where as if a producers don't make XXX amount of profit, it will be hard for the producer to work on the next blockbuster and they would slowly have to regain their prior status.

but to sum this all up: bittorent, foo