From IMDB.com:
"Hollywood closed out the year virtually tied with its results for last year. Total box-office revenue came to $9.63 billion versus $9.68 billion in 2007, according to Media By Numbers. The slight increase was the entire result of higher ticket pricing, inasmuch as the number of movie patrons dropped 4.3 percent from 2007. In an interview with the Associated Press, Media By Numbers chief Paul Dergarabedian said that the 2009 figures were impressive given the current economic downturn. "The movie industry is totally holding its own in the face of the recession, increased competition from other entertainment options and emerging technologies," Dergarabedian said."
The skinny: While 4.3% drop in attendance accounted for $50 million in business, movie theaters will continually raise ticket prices, the exact opposite of what they should do.
It's the long tail argument, and taken at extreme measures, you could have 100,000 people see a movie for the year at a reasonable $96,000 a ticket. Or have 2 billion people see any one movie and charge $5, which ends up being $10 billion, an increase. Or even $6, which turns revenue into $12 billion. And movie goers would be pleased as punch as it's $4 cheaper per ticket.
Now if only we could get the concessions cut in half.
No comments:
Post a Comment