HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
The national average ticket price is typically below inflation. Now, as far as concessions...that is to counterbalance the cost of renting
the movie from the distributor. So if film cost is between 55 and 65%...the take on a $9 ticket is $4ish. The food cost in a theater is anywhere from 12% (no frills) to 15% (fast food) to 22% or more in the restaurant style theaters. So, you get a $9 ticket and a large drink and popcorn with chicken tenders for $25. that is $8.75 cost on $34 leaving $25.25 possible"profit" or 74% before including labor, rent, utilities, maintenance, janitorial, supplies, etc. Keep in mind that only 28 - 34% of movie patrons go to the concession stand...so that 74% only applies to 1/3 of the moviegoers. So...100 moviegoers = $900 on tickets. Not sure what the national concession per cap is...go with $4 so that is $400. So on $1300 a theater has $745 before operating expenses.
I think the direction theaters have gone in with the Movie Theater with a Restaurant or even a Restaurant with a Movie Theater is a good move. The quality has to be there. Then you capture more moviegoers at the stand which alleviates the greater food cost. Plus it is a better experience.
WSJ: Disney will receive 65% of ticket revenue from STAR8, a new high for a Hollywood studio. Nov 01, 13:19
keeping 35% of star wars probably going to be better than keeping 100% of anything else {nm} Nov 01, 13:23
cut screens and showtimes to squeeze supply {nm} Nov 01, 13:26
Just means customers will go to the theater that DOES have showings, and buy concessions there, too. {nm} Nov 01, 14:14
I agree it's cruddy, and hurting those who actually HELP them the most (theater owners)! {nm} Nov 01, 15:30
I know I know. But consider distributors pay for all distribution costs and all promotion to put butts in the seats Nov 01, 15:40
Slightly off topic, but were theaters making money hand over fist before the Internet Age of devices and streaming? Nov 01, 16:17
thats what I mean with saying they have less leverage. Other revenue streams are significant Nov 01, 16:41
I must have seen Star Wars 25 times that year. Nov 02, 07:02
its their content and they should be maximizing its value. I would argue that a robust theatrical experience Nov 01, 16:45
Increased marketing and expansion of multiplexes has pushed demand into first weekend Nov 01, 17:47
65% but what is considered the ticket price? Surely they won't take more off IMAX/Dolby right? Nov 01, 14:43
The national average ticket price is typically below inflation. Now, as far as concessions...that is to counterbalance the cost of renting Nov 01, 19:45
