Record-high ticket prices raise moviegoers' demands
As the cost of going out to see a film climbs, theater owners try to give customers more for their money.
The cost of heading down to the local cineplex continues to go up. In fact, the median price of a movie ticket between April and June rose by about 5.5% compared with prices during the first quarter of 2013.
Industry observers say the rising price reflects changes in movie theaters -- and in what their customers now expect from the experience.
The National Association of Theatre Owners reports the national average price of a movie ticket during the second quarter of this year was $8.38, up from $7.94 cents in the first quarter.
Patrick Corcoran, the organization's vice president and chief communications officer, says part of that increase comes from the growing number of 3-D and IMAX (IMAX) versions of films now available.
"Roughly 60% of theaters (in the U.S.) have 3-D," he told MSN Money. "In terms of overall screens, it's . . . about 36%."
One big challenge movie theaters face is competing with what a growing number of consumers have at home. Research group IBISWorld reports that while average ticket prices rose steadily from 2008 to last year, movie theater attendance continued to drop.
Matthew McFarland, the company's movie industry analyst, notes many households have invested in their own digital-format and high-quality home entertainment systems with large screens. Those technological advances also allow consumers to download all sorts of content from online sources, including streaming movies and TV shows from services like Netflix (NFLX).
When you have all those viewing options at home, "going to the movies isn't really about watching something anymore," McFarland told The San Diego Union-Tribune. "It's about having an experience."
And theaters are trying to provide that experience to moviegoers by offering better facilities and food choices, along with reclining chairs, gourmet appetizers and, for a bit extra, food delivered to your seat.
The economic downturn has been hard on movie complexes, which shrank in overall numbers from 5,928 before the recession to 5,697 recently. But fewer theaters also means theater companies can invest in capital improvements, such as the industry's ongoing transition from analog (film) to digital formats. IBISWorld projects these consolidations will allow the movie theater industry to bring up its profit margins from a recession low of 0.2% to an expected 4.2% this year.
Corcoran, of the theater owners group, added that overall attendance at movie theaters this summer is running about 10% higher than it was at this time last year.
"We've got an awful lot of movies, and people are going to see them. It's as simple as that," he said. "We're pretty much the same movie theaters. What's different is the movies we've got."
I haven't been to a movie theater in at least 5 years! Can't say I miss it. Too expensive! And only worth going if you're recommended to see an action flick with great effects and sound. I agree with a previous commenter, not worth going for a drama, chick flick or cartoon.
Of course our 73" TV at home doesn't hurt!
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The good news: Bad weather means fewer drivers on the road, and they're going slower than usual. The bad news: It's still dangerous.
- 8 questions to ask before Mom and Dad move in
- High deductibles fuel new worries of Obamacare sticker shock
- How to use your credit card to donate to charity
- Try this instead of raising the minimum wage
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
[BRIEFING.COM] There wasn't a lot of excitement in the stock market today and there is nothing wrong with that. After rallying in broad-based fashion on Friday, the major indices stood their ground (for the most part) amid a lack of conviction from buyers and sellers alike.
Today wasn't a case so much of the stock market going up as it was a case of some influential stocks going up to keep the major indices on a winning path. In fact, decliners were just about even with ... More
More Market News
The photo-sharing site only has 10 employees, and it may be up for grabs.