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This topic comprises 2 pages: 1 2
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Author
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Topic: Economics of DCI subrun
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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004
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posted 10-11-2009 11:38 AM
Yea..now we got two locations doing discount prices with each having a digital house.
Our first install (NEC 1600C units for both of them with "Real Dumb)" 3D) took awhile for the crowd to accept it until we brought in "Monsters and Aliens", then it exploded due to the fact that opposition is charging $3.50 on top of their regular $9.50 price which steals $13.00 out of your wallet to see a 3D movie on evening price.
Now, with us being a $2.00 house, we only do a $2.00 upcharge and folks likes the idea of only shelling out $4.00 to see a 3D movie.
Now, it doesn't sound like much money being made in the boxoffice, but concessions sales went through the roof, and as theatre owners know that in all due actuality, theatres are actually in the food selling business since that is what they are actually selling and not selling movies since we're just playing movies for someone else and taking a cut of the gate.
When we converted the 2nd location from first run to discount, it was totally slow until 3 weeks later that we added the NEC unit. Then, those numbers took a decent leap after the first week.
Doing digital has caught the eye of another discount theatre in the area and heard that they're thinking about it as well.
You might say, we started a trend of sorts where doing digital conversions for discount DOES work in certain markets - people are hunting for value and you better find ways to give it to them in any way mean and form..
P.M. me if any more questions or details..
-Monte
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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004
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posted 10-12-2009 06:23 PM
Hi Tony - what is our advantage is that we have no competition in the discount market for a good 25 mile radius and have a good customer base since 2001 when the plex was reopened from being closed for almost a year as a discount from when it was under the Cineplex Odeon banner when it opened in 1989.
Plus, our market populous is well over 100k people in the neighboring counties - mainly immigrant, poor to middle class - people who really go after the cheap deals in movie entertainment.
Granted, it was a risk to take - to install a digital in a discount (who would EVER thing of such a thing since adding digital is a sudden expense that a discount plex REALLY doesn't need to have) plex since it opened so poorly for the first three weeks,
But, now with all of these family based 3D movies coming over the horizon along with the $4.00 admit price, it's really caused a stir for people, once again, to wait until we get it and get in on the cheaper price.
As for the turnaround, I really can't answer that since it really depends on the market where one wants, or thinks on, to try this concept.
It's a 50/50 risk, no doubt about that.
Good luck - Monte
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