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Supply and Demand rules all business right? If the number of cinema goers starts to fall dramatically then eventually prices will start to go down. Maybe film budgets will go down first, and ticket prices later, who knows. I expect that those who make big money now will try to hang onto their pay checks for as long as possible, seeing who will budge first. Are we really all going to stop going to the movies? We LOVE the movies. That's why there are so many theatres, so many movies made, and so why ticket and candy prices are so high. 


We as consumers have to make it known that we don't want it anymore before they will consider offering it for less. No one else can do this for us.

2 years, 6 months ago on Economics Of The Movie Theater – Where The Money Goes And Why It Costs Us So Much


First, don't needlessly hate on Chris Tucker. Daaayym!


You mentioned hikes in DVD/netflix/whatever other revenue sources should funds dry up elsewhere. Surely if Theatre owners did stand up collectively then this would happen anyway. If the production houses think that they should be getting X amount back from making a movie then they will make it happen some way or another. The only entity that can really send a proper signal back that they have priced it wrong is the end consumer base will be listened to in time as long-term statistics are analyzed and it's decided one way or another that demand is shifting or whatever.


If we as end consumers expect theatres to stand up and fight so we can have lower ticket prices, then I think we should be getting involved as well. A sense of community with the local theatre should be developed so that the voice of the end users can be heard in discussion as well, and action can be organized.


In my mind, I almost think that the Movie companies should be paying a heavier price to the Theatre companies because they provide the only facilities where their product can actually be used as intended.


As you said, we have to look at them (production houses and theatres) together. It's part of the same experience.


Here's another idea, and I'm not sure how it would work, but what if the production houses owned the theatres. They only showed their own movies and could manage all the costs into it, and we as consumers could choose between going to see that new Warner Bros flick, or the Miramax, or whatever. Smaller houses could negotiate screenings with a bigger house, and it then some middlemen would be avoided.



2 years, 7 months ago on Economics Of The Movie Theater – Where The Money Goes And Why It Costs Us So Much