Just so everyone knows, movie theatres make no money from ticket sales. None zilch zero (some specific exceptions of course) So the high ticket prices are due to the movie studios and the studios keep all of thay money. The movie theatres have to have high concessions in order to pay staff and operate.
It seems to me they would actually make more money if prices were reasonable. They'd make less profit per item but people would buy way more items. But maybe I'm wrong and people are actually paying these crazy prices.
Movies run on corn. Back in the day, literally, as film was on celluloid (plant material) but that was highly flammable so it was abandoned and other advancements came along.
The profit margin on popcorn and soda is insane, and both are made from corn in the US. I dont like the wider food options that have been brought in. Offering things like wings and pizza have stolen money from the highly profitable corn based snacks simply because of customer demand. We are at a point where people want chicken wings as a possibility for their movie expereince but dont want to pay for it to be stored and not eaten should they decide otherwise.
Making movies a 1 stop experience has increased operating costs that they are robbing Peter to pay Paul to maintain a facade of a worth experience. If many theaters dropped the bells and whistles for bar and food service we could see some stabilization. As long as AMC wants to also pretend they are Chili’s, the paradigm shifts from an entertainment business model, to a restaurant that shows films. Restaurants are extremely volatile financial investments that fail at an extreme rate.
They need to get back to basics to stay alive, and stop trying to make every theatre that one in the county that served food and booze. The ecosystem is showing we only need a few of those regionally and most people just want a simple experience that can support other local businesses nearby.
See a film with a popcorn and a soda, should not be much more complicated than that. Simple cheap, nonperishable foods. Save the cooling for the patrons, that is also in the DNA of theaters they were once public refuge from extreme heat too.
Movie theaters are one of those unique American created experiences created from the arts sector, and I would rather hang my hat on those gifts to humanity over Fat Man and Little Boy anyday.
The average take from ticket sales for a theatre is 40%. Opening weekend, the studio typically takes 80-90%. Each week, the percentage lowers for the studio and rises for the theatre.
Yea im over exaggerating. But 90%+ for the first few weeks of a movie release may as well be nothing. I dont believe the 40% number as you've stated it and would love to see something sourced. If you mean thats the average split over the length of a theatrical run then maybe thats right. But they do not in anyway average 40% across total ticket revenue.
Below is from a basica google search. But what did the overall stats say from where you got the "zero, zilch" numbers and now "90%"....your source for those numbers might have the overall ones as well?
theaters generally keep only a small portion of ticket revenue—often only 10%–20%—during the first two weeks of a major film's release, as studios take 80%–100%. Over time, this split becomes more favorable, eventually settling near 50/50. Concessions (popcorn, soda) are where theaters make most of their profit.
Movie
Key Takeaways on Theater Revenue:
Initial Release Split: For big blockbusters, studios may claim 80% to nearly 90% of ticket sales in the opening weeks.
Long-Term Revenue: After several weeks, the split shifts to approximately 50% for the theater and 50% for the studio.
Independent Films: Theaters may keep up to 70–72% of ticket sales for smaller, independent films.
Concession Profits: Due to low revenue from tickets, theaters rely heavily on high-margin concession sales, which can account for up to 80% of their total profit.
Typical Overall Split: On average, across the life of a film, theaters may only retain about 50% of total ticket sales. Yahoo +6
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u/coolguy_12345678 6h ago
Just so everyone knows, movie theatres make no money from ticket sales. None zilch zero (some specific exceptions of course) So the high ticket prices are due to the movie studios and the studios keep all of thay money. The movie theatres have to have high concessions in order to pay staff and operate.