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Topic: One Theater Owner Predicts 3D Ticket Prices Will Fall

System Notices
Forum Watchdog / Soup Nazi

Posts: 215

Registered: Apr 2004

posted 03-26-2012 08:19 PM

One Theater Owner Predicts 3D Ticket Prices Will Fall, and 2D Prices Will Increase to Subsidize 3D

Source: slashfilm.com

quote:
A few years ago, prices for 3D movie tickets increased thanks to 3D surcharges that help cover the cost of converting cinemas to 3D, and simply because 3D films are marketed as events, which supposedly means they deliver more value than regular old 2D movie projections.

I don’t think many people would be upset to see 3D ticket prices drop, at least in the abstract. But one owner of a small movie theater chain thinks that in 2012 we’ll see 3D prices lowered, while 2D ticket prices are increased to make up the difference. In other words, we’ll all pay for 3D, whether we like it or not.

In Screen Trade Magazine, Spotlight Theaters CEO Joe Paletta writes about the future of exhibition. In particular, he says of ticket prices:

Among the bigger changes will probably see the 3D-upcharge disappear. 3D charges will help increase the overall ticket-price but, as an industry, I think we’ll see a blend begin to emerge in 2012, where patrons will have a single price for both 2D and 3D films. 2D prices will increase and 3D prices will decrease.

I can’t say I’m surprised to hear this, but making this change would have made a lot more sense three years ago just as 3D started to get big. Prices could have been gradually pushed up across the board and people wouldn’t have noticed. Granted, a lot of people won’t notice this anyway, I expect, but if (a) this price change does become an industry-wide trend and (b) it gets widely reported, then we’re likely to see a lot of angry customers.

Some of the reason for a general ticket price increase might be found in this other statement from Paletta, as he discusses concessions:

However, I cannot see exhibitors’ willingness to absorb spiralling concessions costs. We are already operating on very slim margins and will find ways to pass along price-increases to the consumer in some form or fashion. Frankly, movie theaters that do not turn a profit on their investment will go out of business.

Keep in mind that this is just one man’s prediction. Paletta owns a five-cinema chain, with locations in Georgia, Florida and Hartford, CT. He may operate on slightly tighter margins than some larger chains. But if large chains like AMC think they can make an across-the-board price change without too much customer backlash, you can bet it will happen.

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99

posted 03-27-2012 12:50 PM

quote:
However, I cannot see exhibitors’ willingness to absorb spiralling concessions costs. We are already operating on very slim margins and will find ways to pass along price-increases to the consumer in some form or fashion. Frankly, movie theaters that do not turn a profit on their investment will go out of business.

He's right, but that's a badly written paragraph. He's talking about the entire movie theater operation, which really DOES operate on a slim margin...but he makes it sound like it's the concession stand that has "very slim margins" which obviously isn't the case.

Of course the whole article is badly written ("2-D projections"?) so the guy might have been misquoted.

I do think it would be good to get rid of the surcharge, especially since the big city places have already paid for their 3D equipment many times over, probably.

Of course, now we all gotta start saving up for laser projection, so...

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Mitchell Dvoskin
Phenomenal Film Handler

Posts: 1869
From: West Milford, NJ, USA
Registered: Jan 2001

posted 03-27-2012 03:56 PM

Getting rid of the 3D surcharge is a good thing, but raising the price of 2D movies brings the risks associated with any normal price increase. Decreased attendance vs increased ticket price. Further, in most major markets, there is more than one theatre circuit, and if one raises 2D prices and the other(s) don't, people will eventually go elsewhere.

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Mike Frese
Master Film Handler

Posts: 465
From: Holts Summit, MO
Registered: Jun 2007

posted 03-28-2012 08:53 PM

Mike,

Real3d is the #1 3d system used which comes with a $.50 royalty. That will keep the prices higher unless Real3d is willing to take less.

Now smart people like yourself went Dolby and have the better flexibility in pricing. (again another compliment)

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99

posted 03-29-2012 01:39 PM

And aren't the studios still paying for RealD glasses? I'll bet that'll end pretty fast once Sony stops paying.

I think once that happens, and you figure in the cost of collecting, washing and replacing Dolby glasses the cost is about a wash. The biggest reason we went with Dolby was I didn't want to put in a silver screen.

As long as we're talking about 3-D expenses, I will say these two things about Dolby's new lighter-weight and kid-size glasses:

1. They are beyond flimsy. Kids poke their thumbs right through the lenses and pull-off the arms with ease. Probably about 25% of the kid-size glasses we got last fall are ruined already, after only about three or four kiddie 3-D movies.

2. They are ridiculously priced. I sincerely hope they announce a major "deal" at CinemaCon.

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Sam D. Chavez
Film God

Posts: 2153
From: Martinez, CA USA
Registered: Aug 2003

posted 03-29-2012 01:58 PM

Regards the issue of Dolby 3D glasses; They do have a warranty for a period of time and many customers are taking advantage of this policy.

You do need to save the bad ones and send them in for replacement. I usually sell only the Cat. No. 834's as they are more stout.

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Manny Knowles
"What are these things and WHY are they BLUE???"

Posts: 4247
From: Bloomington, IN, USA
Registered: Feb 2002

posted 03-29-2012 07:25 PM

If the ticket prices go up (again) the quality of the movies better justify the increase. But, I'm not deluded or naive. I know the quality won't increase.

I've already cut back on going to the movies. If this happens, I'll probably stop going altogether. It's just not worth the premium charge.

If I want to see a movie badly enough, I'll just wait to see it on video. Lately, I've been taking in more of "the classics" by checking them out from our public library and the University library, or streaming via Netflix.

And if I really like a movie enough, I'll just buy the Bluray. In the long-run, that's probably going to be cheaper than buying tickets and concessions.

IMHO, going to the movies has become too risky -- due to the cumulative effect of the high admission price, lowered exhibition standards, and poor storytelling choices and aesthetic (anesthetic?) trends.

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Joe Redifer
You need a beating today

Posts: 12859
From: Denver, Colorado
Registered: May 99

posted 03-29-2012 08:52 PM

Yay! Another justification to pirate movies.

I don't know who is behind this idea, but they're their own worst enemy, clearly.

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99

posted 03-30-2012 03:10 PM

quote: Sam D. Chavez
They do have a warranty for a period of time and many customers are taking advantage of this policy

Well...the problem is not that they're defective. They just have a flimsy design. They could give us a whole bunch of new ones and then they would get ruined within days, too. So that doesn't exactly solve the problem.

Didn't they test these out with actual kids? The lenses ought to be heat-sealed to the frame, not just clipped in with a pop-out plastic filler.

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Sam D. Chavez
Film God

Posts: 2153
From: Martinez, CA USA
Registered: Aug 2003

posted 03-30-2012 06:41 PM

Mike,

They did improve them a bit, but not to the degree you night wish.

Returning them is worth a try. They used to just replace them no questions asked but due to the number of complaints, I'm told they tightened to requirements. Now, there's a good solution, right?

Publicly traded companies, humbug!

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Kevin Cook
Film Handler

Posts: 2
From: Hartford City, IN, USA
Registered: Oct 2011

posted 05-12-2012 10:03 PM

I dont know if 3D is going to stick around too much longer because more people are choosing the good old 2D film versions over the 3D because of price. Here is what I think needs to happen with 3D 1. The filmmakers need to have a story suitable for 3D. 2. The filmmakers need to actually shoot the movie in 3D(what a concept!)

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David Favel
Jedi Master Film Handler

Posts: 764
From: Ashburton, New Zealand
Registered: Feb 2002

posted 05-13-2012 01:05 AM

Cue Piranha 3DD.
Nearly fell off my chair laughing.

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