Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Chinese workers urged to stay home as virus spreads

Jan 27, 2020

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace
Download
HTML Embed
HTML EMBED
Click to Copy
This Is Uncomfortable
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Missed “Marketplace” with Kai Ryssdal on air? Catch up here! Listen now

Movie theaters move beyond the ticket price

David Weinberg Mar 26, 2014
Share Now on:
HTML EMBED:
COPY

Movie theaters move beyond the ticket price

David Weinberg Mar 26, 2014
Share Now on:
HTML EMBED:
COPY

The president of the National Association of Theater Owners, John Fithian, just announced plans to test the idea of offering discounted movie tickets one day a week. He said he is working with one state in particular — but wouldn’t name it. Box office attendance is on the decline in this country, and yet, at the same time, box office revenue hit an all-time high in 2013.

The simple explanation is that fewer people are going to the movies, but they are paying more for their tickets. Mostly we’re talking about 3-D movies, which are more expensive. But higher ticket prices aren’t necessarily great news for theater owners. Theaters have to share box office revenue with studios, says business professor William Greene of the Stern School of Business at NYU.

So it’s not always in their best interest to raise ticket prices. And for the most part they haven’t. When adjusted for inflation, seeing a movie today isn’t much more expensive than it was decades ago.

“Most of the revenue theater owners make is through concessions and ancillary revenues,” says *Abraham Ravid. That ancillary revenue includes money that theaters are now charging studios to show trailers for upcoming films, like Divergent.

 

Because tickets are already relatively cheap, a discount day probably would not raise attendance dramatically, but it could be a good marketing strategy. Ravid says: “Nevertheless, you would expect the decline in theater attendance will continue as more ways of delivering movies become available.”


*CORRECTION: An earlier version of this story misspelled Abraham Ravid’s name. The text has been corrected.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.