Ethanol, the stupid fuel that the government loves for some reason, is going to take up 40% of next year's corn crop. Movie theaters make nearly half of their money from concessions, and a third of that money comes from popcorn sales. When concession prices go up, people buy less, "forcing" theater owners to raise their ticket prices. Eye opener:
In an interview with the Los Angeles Times in March, Mike Campbell, CEO of Regal Entertainment, the nation's largest theater chain, conceded as much: "If we didn't charge as much for concessions as we did, the tickets to the movies would cost $20." (According to the MPAA, last year's average movie-ticket price was $6.88.)
Three things immediately come to mind:
1. $6.88 average ticket price? In that case, how about just raising the prices everywhere that people pay $6.88? NYC is over eleven bucks already. Give us a break. Those heartland types probably bring their own corn, anyhow.
2. Considering the fact that "popcorn and soda are already at an 80% markup," how much of an economic imperative is this, really? Theaters can't eat any price increase on an item that's marked up by 80%? How about lowering the price of Reese's Pieces, then?
3. Iron Man was a worthwhile film.
[Read the full, excellent story at Ad Age]