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Why Are Movie Tickets So Expensive?

It’s shocking how much movie tickets cost nowadays. Studies show that many people have stopped watching movies in the theaters simply because the prices have become so prohibitive. In fact, about forty percent of retirees have admitted that they can’t afford the tickets and simply choose to stay home and rent the video. Unfortunately as less and less people go to the movies, the higher prices will become, as the beleaguered movie industry scrambles for ways to still make a profit.

One date at the movies will cost about $20 a head. This includes the $10 dollars for the ticket and a popcorn and drink which will cost about $6 and $4 respectively. A couple taking their 2 kids to watch the latest family feature will spend at least $80.

This is quite high considering that a person can already purchase a decent DVD player for $40. It is also quite cheaper to rent a DVD, with an average of $4 a title. Another advantage of watching movies at home is that food becomes incredibly cheap—people need only raid the refrigerator or pantry to find drinks and snacks.

So why can’t movie producers simply lower the cost of the ticket? It’s because of the way the theater revenue is set up. Usually any ticket sales that a theater makes in the first week goes to paying the movie studio. The theater is more likely to make money if the movie runs for several weeks. The movie producers on the other hand must recover the costs of creating the movie in the first place, paying not just the actors but the crew, special effects, location and production expenses, etc.

Featured in Entertainment