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MOVIE THEATRE FAQ: Your Money at the Movies
Spill’s latest Tweet-Off has provoked me to play my hand. A hand I was going to keep in my pants until about mid-April. But given the subject matter, I might as well come out with it.
At the risk of being found out and subsequently fired from my rather plush if frustrating job at a very nice corporately movie theatre chain, I am going to expose to you members the secrets as to where your money is going at the movies. For most of you, this is nothing new. For those few of you who don’t know this information, I hope you learn something.
So let’s begin with the most common issue involving your money at the movies!
Why the hell do ticket prices cost so damn much?!
This all depending on who owns the theatre and how they run things. Generally, someone, possibly lawyers, will draw up a contract with the various studios in Hollywood saying that they will pay them a certain percentage for showing their film to the public. Unfortunately, this is where we get screwed. Those box office numbers you read every Monday in the paper or hear Korey and Carlyle say in ACOCO? Yeah, those. The theatre showing the film gets none of those. It all goes into the studios pocket. If the theatre does get any money, it’s only enough to cover the cost of printing the movie ticket.
If a theatre has a 3D projector, you’ve probably noticed a difference in price between the two tickets. What we are suppose to tell guests is that it is to cover the glasses. That’s bullshit. What is really going on is that the price difference is to cover the conversion costs of installing/replacing a 35mm film projector with that of a digital projector with a 3D filter lens. So with those tickets, the theatre gets to keep a percentage of the money. But chances are they’ve already spent it just getting the damn projector put in.
IMAX movies are the same way, but it is mostly with maintaining the equipment. Remember, these are eight-story tall screens in some locations, and in order to project a film at that size, you need a pretty damn bright light bulb. One IMAX light bulb can cost at least $700 to replace if it burns out in the middle of a film. IMAX 3D movies are even more expensive to maintain.
For those of you who like to go to those one-night events at movie theatres, the money for that ticket does a lot of traveling. Once again, the theatre gets the shaft in the percentage cut. Why? We are the host for the event. The money actually goes to the company that is broadcasting the event, and more often than not it is a satellite provider. From there, the satellite provider gets a cut while sending the rest of the money to the people that produced the event for the movie theatre to broadcast. Another way to think about it is like watching pay-per-view on the big screen. I mean, hell, it costs just as much for PPV as it does for one ticket to a satellite feed of the latest Met Opera at the theatre.
Why can’t I see [name a movie] for free on its opening night?
Some companies run promotional programs where if you spend a certain amount of money with them, you get a free pass to any movie you want. Well, almost any. Some of these same companies don’t allow you to use these free tickets on certain movies on their opening weekend. This is part of the contracts with the studios. Basically, the studios want to make as much money as possible during the first two weeks of a film’s run. In order to maintain a good relationship with the studios, these theatre chains will have to fold and limit how many free passes they allow for those movies. So if you get a free pass and are planning on saving it for Harry Potter, don’t bet on being able to use it on its first two weeks.
Now with 3D movies, that’s a different story entirely. The reason why you cannot use the free pass for those movies is because of, again, the cost of converting the equipment in the projection booth.
Naturally, this doesn’t apply if you are (un)lucky enough to get a Re-Admission ticket. Those are good for all shows because, let’s face it, the theatre fucked up and this is their way of saying “we fucked up and we’re sorry.”
Is this why popcorn costs so much?
Yes. And, again, at the risk of being found out and fired, I’m going to tell you that you’re getting ripped off at the concession stand. But chances are you already knew that. After all, Wal-Mart sells the same box of Rainbow Nerds for $1 that we sell for $4. And popcorn? I can’t speak for all theatres, but at mine we make a 300% profit when someone buys a small bag.
The sad fact is that movie theatres really don’t make any money at the box office. Remember back in 1997 when Titanic was in theatres for nine months? All those millions of dollars it collected during that time went straight to the studio. We saw none of that. So to make up for the losses, we have to price popcorn and soda the way we do at the concession stand. That’s where the theatres make all of their money to cover employee pay, projector maintenance, and making sure your seats are replaced with a new one if you discover someone ripped a hole in the headrest.
Fuck that! I’ll just sneak my own shit in!
I will say that depending on how an individual theatre is run, you could get away with doing this, but the economic consequences for such action will only hurt those who actually buy popcorn and candy as part of their movie theatre experience.
Ideally, what we would like to happen is that every customer that comes into the lobby buy at least one bag of popcorn and one soda, even if it is a small size. Hell, I’d like it if every guest buys a kid’s meal! But we all know that will never happen. That’s another reason why the mark up on popcorn is so high. It’s to make up for those guests who don’t come to the concession stand for whatever reasons those may be.
With that said, imagine then what would happen if you snuck in your own food and didn’t bother to pay for even a small bottle of water. I can understand the outrage against paying $4 for something you can get at BP for only $1.50, but humor me. Eventually, the theatre won’t be able to cover the paycheck of the poor sap that has to clean up after you. That means that you would be responsible for making sure the theatre is clean for the next group that comes in, because chances are the manager running the theatre can’t do everything by themselves. I know this is an extreme situation, but it has happened before. I personally experienced it when we had two big family movies playing on nearly half of our screens on Father’s day. Nothing got cleaned. Why? Because I was the only person cleaning. Why? Because they couldn’t afford a larger staff. In fact, by the time I took my break, as required by labor laws, at least five theatres were not cleaned on time, and my bosses had to deal with some really angry customers that said their theatre looked like a dump.
That’s bullshit. What about all those advertisements in front of the movies?
Those are mostly contractual obligations. If they bring in any money at all, I wouldn’t know what happens with it. Nobody has told me anything about those.
Except that Disney hates the advertisements. These programs tend to advertise their competitors, which they are not against but generally don’t like. So when you don’t see an advertisement pre-show in front of Up this summer, you’ll know why. At least, that’s why we’ve never shown them in front of any of the Disney movies we’ve shown in the past 5 years.
So there you have it. You now know where all your money is going at the movies.
Around mid- to late April I’ll be posting a FAQ giving more insight into some aspects of the movie theatre to those who don’t know already. If you have any questions or curiosities about movie theatres, please ask away in the comments. And please tell your friends about this FAQ, becasue the more people that know this information, the better your movie theatre experiance will (hopefully) be.
At the risk of being found out and subsequently fired from my rather plush if frustrating job at a very nice corporately movie theatre chain, I am going to expose to you members the secrets as to where your money is going at the movies. For most of you, this is nothing new. For those few of you who don’t know this information, I hope you learn something.
So let’s begin with the most common issue involving your money at the movies!
Why the hell do ticket prices cost so damn much?!
This all depending on who owns the theatre and how they run things. Generally, someone, possibly lawyers, will draw up a contract with the various studios in Hollywood saying that they will pay them a certain percentage for showing their film to the public. Unfortunately, this is where we get screwed. Those box office numbers you read every Monday in the paper or hear Korey and Carlyle say in ACOCO? Yeah, those. The theatre showing the film gets none of those. It all goes into the studios pocket. If the theatre does get any money, it’s only enough to cover the cost of printing the movie ticket.
If a theatre has a 3D projector, you’ve probably noticed a difference in price between the two tickets. What we are suppose to tell guests is that it is to cover the glasses. That’s bullshit. What is really going on is that the price difference is to cover the conversion costs of installing/replacing a 35mm film projector with that of a digital projector with a 3D filter lens. So with those tickets, the theatre gets to keep a percentage of the money. But chances are they’ve already spent it just getting the damn projector put in.
IMAX movies are the same way, but it is mostly with maintaining the equipment. Remember, these are eight-story tall screens in some locations, and in order to project a film at that size, you need a pretty damn bright light bulb. One IMAX light bulb can cost at least $700 to replace if it burns out in the middle of a film. IMAX 3D movies are even more expensive to maintain.
For those of you who like to go to those one-night events at movie theatres, the money for that ticket does a lot of traveling. Once again, the theatre gets the shaft in the percentage cut. Why? We are the host for the event. The money actually goes to the company that is broadcasting the event, and more often than not it is a satellite provider. From there, the satellite provider gets a cut while sending the rest of the money to the people that produced the event for the movie theatre to broadcast. Another way to think about it is like watching pay-per-view on the big screen. I mean, hell, it costs just as much for PPV as it does for one ticket to a satellite feed of the latest Met Opera at the theatre.
Why can’t I see [name a movie] for free on its opening night?
Some companies run promotional programs where if you spend a certain amount of money with them, you get a free pass to any movie you want. Well, almost any. Some of these same companies don’t allow you to use these free tickets on certain movies on their opening weekend. This is part of the contracts with the studios. Basically, the studios want to make as much money as possible during the first two weeks of a film’s run. In order to maintain a good relationship with the studios, these theatre chains will have to fold and limit how many free passes they allow for those movies. So if you get a free pass and are planning on saving it for Harry Potter, don’t bet on being able to use it on its first two weeks.
Now with 3D movies, that’s a different story entirely. The reason why you cannot use the free pass for those movies is because of, again, the cost of converting the equipment in the projection booth.
Naturally, this doesn’t apply if you are (un)lucky enough to get a Re-Admission ticket. Those are good for all shows because, let’s face it, the theatre fucked up and this is their way of saying “we fucked up and we’re sorry.”
Is this why popcorn costs so much?
Yes. And, again, at the risk of being found out and fired, I’m going to tell you that you’re getting ripped off at the concession stand. But chances are you already knew that. After all, Wal-Mart sells the same box of Rainbow Nerds for $1 that we sell for $4. And popcorn? I can’t speak for all theatres, but at mine we make a 300% profit when someone buys a small bag.
The sad fact is that movie theatres really don’t make any money at the box office. Remember back in 1997 when Titanic was in theatres for nine months? All those millions of dollars it collected during that time went straight to the studio. We saw none of that. So to make up for the losses, we have to price popcorn and soda the way we do at the concession stand. That’s where the theatres make all of their money to cover employee pay, projector maintenance, and making sure your seats are replaced with a new one if you discover someone ripped a hole in the headrest.
Fuck that! I’ll just sneak my own shit in!
I will say that depending on how an individual theatre is run, you could get away with doing this, but the economic consequences for such action will only hurt those who actually buy popcorn and candy as part of their movie theatre experience.
Ideally, what we would like to happen is that every customer that comes into the lobby buy at least one bag of popcorn and one soda, even if it is a small size. Hell, I’d like it if every guest buys a kid’s meal! But we all know that will never happen. That’s another reason why the mark up on popcorn is so high. It’s to make up for those guests who don’t come to the concession stand for whatever reasons those may be.
With that said, imagine then what would happen if you snuck in your own food and didn’t bother to pay for even a small bottle of water. I can understand the outrage against paying $4 for something you can get at BP for only $1.50, but humor me. Eventually, the theatre won’t be able to cover the paycheck of the poor sap that has to clean up after you. That means that you would be responsible for making sure the theatre is clean for the next group that comes in, because chances are the manager running the theatre can’t do everything by themselves. I know this is an extreme situation, but it has happened before. I personally experienced it when we had two big family movies playing on nearly half of our screens on Father’s day. Nothing got cleaned. Why? Because I was the only person cleaning. Why? Because they couldn’t afford a larger staff. In fact, by the time I took my break, as required by labor laws, at least five theatres were not cleaned on time, and my bosses had to deal with some really angry customers that said their theatre looked like a dump.
That’s bullshit. What about all those advertisements in front of the movies?
Those are mostly contractual obligations. If they bring in any money at all, I wouldn’t know what happens with it. Nobody has told me anything about those.
Except that Disney hates the advertisements. These programs tend to advertise their competitors, which they are not against but generally don’t like. So when you don’t see an advertisement pre-show in front of Up this summer, you’ll know why. At least, that’s why we’ve never shown them in front of any of the Disney movies we’ve shown in the past 5 years.
So there you have it. You now know where all your money is going at the movies.
Around mid- to late April I’ll be posting a FAQ giving more insight into some aspects of the movie theatre to those who don’t know already. If you have any questions or curiosities about movie theatres, please ask away in the comments. And please tell your friends about this FAQ, becasue the more people that know this information, the better your movie theatre experiance will (hopefully) be.
Comment
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Comment by Zeek Slider on March 19, 2009 at 8:31pm -
@Meat Paddy: Oh, god, don't remind me about those songs they play in the theatres when we have to clean up after them. I have to sit through some of the most god-awful piece of so-called music I've ever heard because of that! The only time I actually found something they were playing enjoyable recently was when they were advertising a new Willie Nelson album I've been meaning to look up. But "corporate" changed the audio line up this past weekend, so I never got the album title.
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Comment by Meat Paddy on March 19, 2009 at 12:06pm -
Oh and the bad Indian accents going around because of Slumdog. Chai Walla this Chai Walla that. "Computer Lock Diaja", "Listen to the man with the colt 45...Gunmaster Gman is in charge now", "Latika...Jamal...Latika...Jamal" Some servers have started dancing to the routine in front of the audience at the end of the movie. But it is still the money maker and going strong. Outsells Watchmen for the most part.
Ok sorry for going off on a weird tangent there but like I said, embeds in your soul.
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Comment by Meat Paddy on March 19, 2009 at 11:53am
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I will tell you this. The Drafthouse does not allow anyone under the age of 18 without a parent. It is considered a bar. Texas law. But for those with screaming kids, Tuesday is Baby Day. First two shows you can bring in your screaming infant. Trust me there are plenty.
But also consider this, from the restaurant perspective, business takes a nose dive during slow movie seasons. If there isn't a big movie out, food sales drop. Which means tips drop. Tips drop, tip out for support staff drops. All that goes for the big Drafthouses that play first runs. Go to the one in the club district, most of their sales I imagine are from liquor sales. But they show classic and bad movies for free on certain nights at midnight.
Also, just because food is being served, doesn't mean people will order. 100 movie goers in a theater is nothing if they are not ordering. While it is a restaurant, it is a theater first. Plus if the movie is bad,~cough~Australia~sniff~, people don't tip like it's the servers fault the movie sucks. But get an upbeat movie like Mamma Mia, people will drink their asses off and tip big.
I heard enough ABBA from Mamma Mia to last a decade. Also Journey is ruined for me because of Bedtime Stories. True story, a brawl almost broke out because kitchen loves to play Journey, they cranked up the volume of the one song from Bedtime Stories and the servers nearly rioted. When you have to clean the theaters after a show, those songs rip into your brain and embed themselves in you soul and devour you from the inside out.
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Comment by Miley Zor-El on March 19, 2009 at 3:11am -
That's why conventional theaters are dying.
We have this theater up here, the Bear Tooth, that's somewhat similar to the Alamo, at least from what I've heard. They figured out that it really doesn't matter what movie is playing, people just like the screen size and the theater experience. Three bucks a ticket, which is cheap for Alaska. Popcorn is two bucks a bag, bottled water is sold for 1.50. But there's also the best pizza in the state, high dollar mexicouldbe food. (Same ingredients but none of the practical experience). Food brought to your table discreetly, kids segregated to the upper balcony, and homebrewed beverages. I don't drink alcohol, but the cream soda is to die for.
The point is, theaters that can't think creatively beyond jack up crappy concession prices are dinosaurs that need to die. Yeah, concession sales are pretty much ti for shot, but restaurants also only make food and they don't have to charge an arm and a leg. Just think of the movies as a perk. Some places give free wifi, some free bread sticks, some cheap movies. The Bear Tooth half the time gives tickets for free for stuff like the Super Bowl or the Presidential debate, or plays old stuff like Beast from 20,000 Fathoms that's uber-cheap, but people still turn up in droves.
The experience is why people go to the theater, and they manage to deliver on that experience and still make reasonable money with reasonable prices. I know the argument will be brought up that it works because the movies are second-run and nto New Releases, but the profit model is still incredibly similar. Neither theater makes actual money off the movie itself. New release or second-run the theater will still take the money, they'll just expect less.
Focus on proper dining instead of crummy concessions, and people will buy food. I sneak food into main theaters not because I'm too cheap, but because I'd rather have a nice fresh honey mustard turkey and cucumber wrap from Subway than some greasy microwave pizza. Intelligent theater owners figured this out, and marketed to the dining crowd so heavily that they actually got more people eating just for the food without a ticket than actually see the movies.
Theater projects like CineCapri offer a premium version of the ticket, with extra profit going directly to the theater to sit in a nicer auditorium with a bigger screen and cushier seats. No concessions were needed to make a profit there. And people gladly pay the higher price.
It's not so much that it's eight bucks for snacks that make people mad, it's that it's eight bucks for twenty cents worth of popcorn. A ripoff is a ripoff no matter how you try to justify it. And anyone who says they need to ripoff people's wallets is either an idiot or lying.
It's not the price that's the problem, it's the value. I easily spend thirty bucks by myself at the three dollar theater, whereas the overpriced theater only gets ten. I don't mind because I get my money's worth with great pizza, great beverages, and a great experience. Value is the key, not apologetic ripoffs.
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Comment by Farktoid on March 18, 2009 at 10:54pm -
I WISH there were more theaters like the Alamo Draft House. Dinner during the movie, good beer, beer delivery...
If a theater can get 100 people into a theater, all of them ordering food, snacks, and beer, the profit margin would be like gangbusters. Plus if I could find a place that charges a slight premium to keep children out of the theater, I would go for that.
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Comment by Siriusly Black on March 18, 2009 at 6:17pm -
Solution.
Restaurant theaters order your food before the movie and it'll be delivered to you by a waiter your sitting at at table of long row e.g bar/actual restaurant. That way people will feel more bullied into buying food.
Though it might hurt the studio in terms of attendance as people won't want to pay extra for there damn kids crying over chicken fingers
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Comment by Wayero on March 18, 2009 at 6:17pm -
So instead of demanding at least a small percentage of money for showing off films, movie theaters just shaft the consumers? I don't see much logic in that one.
If the theaters refuse to show movies without compensation, the studios will make no money. The theaters will take a hit in the short run, but studios could easily hand over some cash.
Its been almost 100 years of film people, times change.
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Comment by Kareem on March 18, 2009 at 2:09pm -
The solution is to create a better product. Create a better movie-going experience that will bring people in. Sell food. Sell beer. Have awesome special events.
The solution is The Alamo Drafthouse.
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Comment by BOWENARROW on March 18, 2009 at 11:53am -
Yeah, when I was working for Edwards Cinemas for two years back in 98 I found all this out. I had no idea that theaters didn't make any money off ticket sales. The two years I worked there the price of movie tickets went up twice and it wasn't the theater that was behind the hike in prices, it was the studios. WTF. I rememeber dealing with angry customers over prices and explaining to them what was really going on.
Leon is right, the theaters and the studios need to come up with some sort of deal where the theaters can made a little profit off the ticket sales and maybe lower the prices of concession too.
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Comment by Meat Paddy on March 18, 2009 at 11:06am
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Mom and Pop thearters?! LOL.
Actually I shouldn't laugh. I basicly work at a mom and pop theater. Not studio owned anyway. Though Fox Searchlight sure seems to like us. We are like a restaurant to boot. Sneaking stuff in sucks on my front because most of us work off tips or tip outs. Then people act so surprised when you take their candy away(I had people throw them at me), or McDonalds or from my personal experience Thanksgiving leftovers. Plus with alcohol being served we take peoples water bottles because we don't know what you might have put in there, i.e. Vodka. I am not going to be fined $2000 for a water bottle.
At least our tickets are cheaper.
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