posted 01-14-2015 11:53 AM                    

quote: "Fox News Story"

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Bad news for theater owners: High ticket prices were the biggest culprit in the 21 percent year-over-year decline in domestic box office revenues last summer, research and consulting firm PwC reports today based on a survey of 1,044 consumers in October and November. Some 53 percent of the respondents cited the rising admission costs over the last five years as one of the main reasons they stayed away.

“High ticket prices are, by far, the number one reason for dissatisfaction across age demos and by movie-going frequency,”PwC concludes in its report, part of its Consumer Intelligence Series. “Despite advanced technology, better seating, improved concessions and the return of 3D movies, the negative of higher ticket prices is difficult to counter-act.” Indeed, it adds, “3D ranks last among drivers of movie attendance.”

Moviegoers spent an average of $8.08 for a ticket in Q3, according to the National Association of Theatre Owners, up 3.1% from the same period in 2013 and 3.9% vs 2012. (People typically shell out much more in cities and in the evening.)

After pricing, 41 percent said that the movies were not as interesting to them, 30 percent said they want to watch movies on their own schedules, and 29 percent said they’d prefer to spend on different recreational activities.

Consistent with the overall theme, well over half of those surveyed said that lower prices would motivate them to attend more frequently. About 23 percent said that they’d go if the movies were better while 9 percent wanted better prices for food.

You can pretty much forget enticing people with extras such as live entertainment or by offering them a digital copy of the movie. “Most of these movie perks fell flat on consumers, except last-minute ‘cheap’ seats,” PwC says. “Respondents of all ages were interested in getting a break on last-minute seats.”

Perhaps just as worrisome for theaters: 71 percent said that they were “very” or “somewhat” interested in watching new movies at home — and 82 percent said that they’d pay anywhere from $10 to $20 extra to do so.

There were glimmers of hope, though, for studios and theaters. The core movie audience, especially 18-to-34 year olds, is “strong” and can be motivated to attend more frequently, PwC says. Moviegoers generally saw three of the summer’s top 20 movies, although a third of those in their 50s didn’t see any of the best sellers.

“Since lowering ticket prices across the board is likely not a viable strategy” PwC recommends incentives including monthly movie subscriptions, last minute discounts, and — more interesting to studios than theaters — offering opportunities to watch new movies at home.

Even so, exhibitors “need to promote the benefits of the in-theater experience including the ‘night out’ and advanced technology benefits,” PwC says. Seemingly contradicting its findings about consumer sensitivity to pricing, the firm says that Summer 2014 “was an anomaly, given less interesting film options. Focusing on interesting content in relevant genres is key. And don’t underestimate the value of recommendations from family and friends.”

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posted 01-14-2015 01:18 PM                    

quote:

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Consistent with the overall theme, well over half of those surveyed said that lower prices would motivate them to attend more frequently.

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quote:

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71 percent said that they were “very” or “somewhat” interested in watching new movies at home — and 82 percent said that they’d pay anywhere from $10 to $20 extra to do so.

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posted 01-14-2015 01:29 PM                    

quote: Mitchell Dvoskin

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The "window" delay is now an insignificant factor prodding people to go out.

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quote: Mitchell Dvoskin

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I think you are comparing apples and oranges. Paying a flat extra fee for a movie regardless of how many people are watching it, vs paying per person. I doubt many people would be willing to pay $10 to $20 extra to watch a movie by themselves.

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posted 01-14-2015 01:41 PM                    

quote: Mitchell Dvoskin

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I think the exhibition industry as a whole needs to educate people on the benefits of going out to a movie vs watching at home. NATO and the major circuits should be using TV and the internet to promote the theatre going experience, rather than relying on the studios to promote specific movies

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quote: Mitchell Dvoskin

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On the other hand, I really don't believe that cost will prevent many people who want to see a movie for attending.

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quote: Mike Blakesley

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I think people are more pissed about paying $14 for a soda and popcorn than they are about ticket prices...especially when the media delights in saying that the ingredients of the soda and popcorn only cost a dollar or less.

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posted 01-14-2015 02:41 PM                       

quote:

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Moviegoers generally saw three of the summer’s top 20 movies, although a third of those in their 50s didn’t see any of the best sellers.

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