Why Does Popcorn Cost So Much at the Movies? (Physorg.com)
New research from Stanford and the University of California, Santa Cruz suggests that there is a method to theaters’ madness–and one that in fact benefits the viewing public. By charging high prices on concessions, exhibition houses are able to keep ticket prices lower, which allows more people to enjoy the silver-screen experience.
The findings empirically answer the age-old question of whether it’s better to charge more for a primary product (in this case, the movie ticket) or a secondary product (the popcorn). Putting the premium on the “frill” items, it turns out, indeed opens up the possibility for price-sensitive people to see films. That means more customers coming to theaters in general, and a nice profit from those who are willing to fork it over for the Gummy Bears.
I’ll have to take their word for it. I’ve seen exactly one movie in the theaters in the last four years. The popcorn and hot dogs cost too much.
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February 26th, 2008 at 6:38 pm
stefanie
That’s just crazy talk. It costs 10 bucks to see a new release at night, 8 for a matinee. If the popcorn (which I never buy) cost less, they would “have” to charge, what, 15? Whatever. And this is Stanford- and UCSC-caliber “research”? Double whatever.
February 27th, 2008 at 9:34 am
TheSizzler
It’s common knowledge in the “industry” that concessions are the only way theaters can make a profit. Ticket prices are determined by the rental fees studios and distributors charge theaters and there is almost no profit margin in them. Theater owners make up that margin by charging $4 for a box of Hot Tamales and $3 for a small Coke. Considering that most theaters are owned by large multinationals, I have little sympathy for that plight. I do, however, always hit the concession stand at indie theaters like Clinton St., Laurelhurst, and Cinemagic.
February 27th, 2008 at 9:29 pm
Mochachocolata-Rita
however they (managed to highly) priced pop corns & hot dogs in cinemas, i never buy em. i smuggled KFC chickens, mcD’s burgers, fries, drinks and all that jazz into cinemas. yum