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Feb22
Movie Prices more than double from 1975

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Screen Digest, a global media research company reports that the average price of a ticket to go to the movies has pretty much more than doubled in the last 30 years.

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One of the major reasons for that is a Hollywood film costs on an average of $75 million dollars to make now, and about 50% more to promote. So, of course, the more it costs to make them, the more we pay to see them.

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Another reason is the regular cost increases for doing business for example increases in rent and increasing wages and bodies to keep up with fire regulations. That along with the usual cleaning of theaters between performances in contrast to only once a day 30 years ago, has all added to the price increase.

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The investment in the various sound systems over the years has also played a big part in the overall picture, along with stadium seating. In the last 30 years there have been 3 periods of time that the cinemas had to have their sound overhauled. From the sound of the 70s all the way up to the Dolby Digital 5.1 that we listen to today that is spread throughout the theaters. While the studios have been making these breakthroughs in technology in sound, the cinemas have been the ones paying for it; and as a continuation, is passed on in higher prices to the consumers.

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As a matter of fact if it weren’t for the concessions, the ticket prices would be much higher. And as we all know, the costs of offerings in the concession stands are as high as three times what they would cost on the street.

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Because 50% of the ticket price goes to the studio or distributors of the film, theaters can’t remain in business based upon the profits from tickets alone, thus the reason they press their concession sales so hard.

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It is so profitable in the U.S. that there are some concession companies that even pay for the restoration of the cinema screens for the privilege of having the best positioning in the concession stand.


3 Comments/Trackbacks




Gary, this is very interesting to me, a big fan of going out to the movies. Do you know what percent of theater profits typically comes from concession sales?


It's not really the films themselves that make money, but almost all the profits come from the concessions completely.

The films are really a teaser to bring you in to the concessions where the real money is made.

That's fascinating. No wonder theaters are so militant in not allowing people to bring their own snacks!

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