Movie Theaters Step Up Their Game in a Bid to Boost Profits
If you want to charge more for tickets, then naturally you need to offer more to audiences. Jim touched on this subject in an earlier post and said the following:
“One of the most powerful things you can do in many cases is to charge more. If you’ve got any kind of audience at all, part of that audience likes you and is willing to pay you more if you have something more that you can offer them. … The lesson for live entertainment venues is always the same, and I’ve been saying it for years: If you can find a way to serve your most passionate fans, you can charge them more and they will be delighted with you.”
In a new trend reported by Sam Sanders at NPR, many movie theaters across the country are upping their game by offering “4-D” experiences with moving seats, fog and other special effects. While it won’t make sense for every movie, for many action and special effects-laden films it will give fans an immersive experience that theaters can charge a premium price for. According to the article:
“Amir Malin, an analyst with Qualia Capital, says a lot of this movie theater innovation is happening because the American box office has kind of topped out. The number of people actually going to see movies is still high, but Malin claims that number has peaked. …
‘Any increase in revenue is largely due to increase in ticket pricing,’ Malin says.
So it’s not about getting more people in seats. In fact, the blockbusters of today actually have fewer viewers than the biggest movies of a few decades ago.
Statistics at Box Office Mojo find that of the top blockbusters of all time, ranked by attendance, only one in the top 10, Titanic, was released after 1990.
That means profit-making is all about getting the people still in the seats to pay more. Every new feature is an excuse to raise ticket prices. And Malin says theaters have to try even harder now because they’re up against a lot of new competition.”