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This topic comprises 3 pages: 1 2 3
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Topic: Regal Announces Admission Prices To Rise 3% to 4%
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Mitchell Dvoskin
Phenomenal Film Handler
Posts: 1869
From: West Milford, NJ, USA
Registered: Jan 2001
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posted 05-23-2013 01:33 PM
Press Release
quote: Deadline.com
CEO Amy Miles seems confident that consumers will continue to flock to theaters, even with the higher admission costs. “Sometimes we joke and say we are an industry that has been dying for the past 50 years,” she told investors today at Barclays Global Technology, Media and Telecommunications Conference. But “as long as we continue to provide that great, affordable out-of-home experience…people are going to continue to go to the movies.” What’s “affordable” is in the eye of the beholder: Regal CFO David Ownby told the group that his company’s ticket prices for 2D movies “will go up in that 3% to 4% range” that’s been the pattern over the last few years. He notes that for IMAX movies Regal adds as much as $6.50 to the price of the basic 2D ticket. The chain’s own RPX large-screen venues have as much as a $5.00 upcharge while regular 3D films cost about $3.50 more than conventional 2D. This year’s potential blockbusters should help the cause.“When you start with Iron Man 3 a couple of weekends ago and you just look at the film slate over the balance of the summer, it’s hard not to get excited about what’s to come,” Miles says. “And it doesn’t stop when the summer” is over. Indeed, Ownby says that for the end of 2013 “we again have a film slate that I think stacks up pretty well” against the strong releases from the last quarter of 2012. On other matters the execs said that they continue to see opportunities to acquire theaters. And they’ve yet to see a significant change at AMC Entertainment since last year when it was acquired by China’s Wanda Group. “We’re partnered a lot with AMC, and we have a lot of ventures where we work together and we can say from that perspective it seems to us that it’s business as usual,” Miles says.
To a certain point, they are correct, people will pay whatever they need to if they want to see it badly enough. What they seem to be missing is people will skip going out for those films that they might like to have seen, but not a must see.
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Lyle Romer
Phenomenal Film Handler
Posts: 1400
From: Davie, FL, USA
Registered: May 2002
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posted 05-25-2013 11:48 AM
The thing about the computer/electronics industry is that as integrated circuit technology progresses, the components on the silicon wafers get smaller and the yield goes up. Therefore, the cost to produce the ICs keeps going down.
In most other industries (including movie theatres), costs to provide products and services go up over time. Don't forget, most (if not all) leases have rent increases over time and for certain the the taxes and CAM charge share of the lease goes up every year. Also, payroll cost continues to increase somewhat as well.
Unless the studios lowered the film rental percentage (which is about as likely as me discovering cold fusion tomorrow) theatres will have to increase ticket costs slightly over time.
10 years ago, if I went to a casual dining (Fridays, Olive Garden) restaurant with my wife, our meal including tip would always be about $30. Now it ends up $36 or so. That's around 2% a year increase.
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