With movie prices increasing to rise between 2.7% and 6.1% a year, it can easily costs teens and parents what once was $5.50 a decade ago up to $11 a piece for a regular movie and almost up to $20 a ticket for a 3-D Imax film ticket. How are kids even affording to go out anymore making minimum wage. Guess what? Their rising again!
According to the Motion Picture Association of America, due to an increase in popularity of 3-D movies and the ever growing revenue from consumers continuing to buy movie theater tickets, movie theater chains such as Regal Entertainment Group, Cinemark Holdings Inc. and AMC Entertainment Inc. decide that the demand means they might be able to raise their prices even more and continue to get the same amount of business. With a record-setting year at the domestic box office, with revenue surpassing $10 billion for the first time. Movie attendance in the U.S. and Canada grew 5.5% in 2009, with 1.42 billion tickets sold, the most since 2004. Ticket sales so far this year are running 10% higher.
Tickets are now raising to as much as 26% in many areas. According to the Wall Street Journal, “At one Seattle multiplex, adult admission is rising to $11 from $10 for a conventional film, to $15 from $13.50 for a regular 3-D showing and to $17 from $15 for Imax 3-D.
“The U.S. economy isn’t in the greatest shape, and there is definitely risk here in pushing price too far in a weak economy,” said Richard Greenfield, a media analyst at BTIG LLC, who issued a research report Wednesday on the price hikes.
Mr. Greenfield said the next month will serve as a test of the strategy. “We’ll have a sense if there is any pushback” from moviegoers, he said.
With this being said, it might be beneficial to figure out alternative plans to go out and have fun. Many may convert to a night stay in for a date night, rather than going out. If this is the case, rising movie theater costs may also increase the price of renting a movie as well as the crowds at the video store.
Money saving tip: Try stocking up on your own movies in advance. Have release parties at home when a new movie just hits on DVD. Order pizza and stock up on popcorn and candy to make it feel like you are getting away in the comfort of your own home. A way to make sure you have your movies reserved and in-hand is to pre-order movies online when possible and then have them conveniently mailed to your front door.