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Author Topic: Movie theatre sued over high snack prices
Justin Hamaker
Film God

Posts: 2253
From: Lakeport, CA USA
Registered: Jan 2004


 - posted 03-08-2012 02:26 PM      Profile for Justin Hamaker   Author's Homepage   Email Justin Hamaker   Send New Private Message       Edit/Delete Post 
Jim: The one thing I get annoyed with is when people refer to the most expensive options and then dismiss a movie as too expensive.

Here's what I mean using my theatre's prices:
4 x 2D matinee = $28.00
1 x large popcorn (with free refill) = $6.50
4 x 20oz soda = $14.00
Total = $48.50

Depending on your budget, that may be more than you are willing to spend on a regular basis, but $50.00 for a movie with drinks and popcorn does not seem unreasonable. As others have mentioned, there are very few out of home entertainment options where you will spend less than $50 for a family of four.

The people who complain the most about the price of snacks tend to be those who are buying the large popcorn, several large drinks, several candy items, and hot dogs or pretzels. Yes, you can drop a huge amount at the snack bar if you order a bunch; but you could just as easily eat before or after and spend nothing at the snack bar.

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Tony Bandiera Jr
Film God

Posts: 3067
From: Moreland Idaho
Registered: Apr 2004


 - posted 03-08-2012 02:28 PM      Profile for Tony Bandiera Jr   Email Tony Bandiera Jr   Send New Private Message       Edit/Delete Post 
quote: Joe Redifer
Your phrasing seems dedicated to the purchaser of the entry fee:

quote: Mike Blakesley
Disney isn't outrageous at all. It costs about $80 to get in, true. But you can stay all day and ride as much as you can for that price, plus see all the street entertainment and "soak up the atmosphere." They spend hundreds of millions of dollars on each new attraction and they are constantly updating and renewing their facilities. Even the shortest day at a Disney park is 8 hours, and can run up to 12 or 16 hours if you hit it right....that's $5 to $10 per hour of entertainment
Unless you stay the hours you indicated, it costs CRAZY more than $10 per hour of entertainment. And at $80 per person it gets insane if you go as a family. "Hey, let's go spend $1,000 at DisneyLand!" You'd have to be criminally insane to do that.
LOL Joe I think Mike posted that because he's pissed off at me over the Oscar's thread. [Big Grin]

Seriously though, Mike, the point is like Joe pointed out that a family will EASILY spend over a grand for that day of entertainment, especially when you add in FOOD and DRINKS, which are also expensive at Disney (but in most cases the food IS good to be honest.)

So your $5-$10 per hour becomes closer to $80-$100 per hour. [Eek!]

BUT, it is all about perceived value, right? So in that light, even the money a family spends for a day at Disney might not be all that bad. And with the attendance they have, I don't think there are that many criminally insane folks out there.....or if they are all insane we are in big trouble. [Wink]

Last time I was at Disneyland the admission was only $40 and I felt it was a good value. I am hard pressed to justify spending the current fee to go there though.

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Edward Havens
Jedi Master Film Handler

Posts: 614
From: Los Angeles, CA
Registered: Mar 2008


 - posted 03-08-2012 03:01 PM      Profile for Edward Havens   Email Edward Havens   Send New Private Message       Edit/Delete Post 
As a child living in Los Angeles in the 1970s, we used to go to Disneyland at least once a month. $5.95 for adults and $4.95 for kids got you in to the park, plus 1 A ticket, 2 B tickets, 3 C tickets, 4 D tickets and 5 E tickets. Parking was a couple bucks. And if you didn't use some of your tickets this time, you could bring them with you the next time and use them then. But then they switched to a single entry ticket thirty years ago. Now, Disneyland is $80 for adults and $74 for kids, and parking is $15. I've been there twice in the past fifteen years, and I don't plan on going back for a very long time, because that's just too damn expensive.

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Bill Gabel
Film God

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From: Technicolor / Postworks NY, USA
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 - posted 03-08-2012 04:18 PM      Profile for Bill Gabel   Email Bill Gabel   Send New Private Message       Edit/Delete Post 
After they switched over to the single entry ticket format. They had a special discount that ran in the 80's-90's for Southern California residents living in zip codes of 90000-96199. The admission was $20.00 . They now have the discount on their SoCal & SoCal Select Annual Passes which gives you 10% off admission and 20% off Tours and 10-15% off at select Restaurants in the park.
Over at Universal Studios they still had the "Ask for Babs" discount running up until about 10 years ago.

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Mike Blakesley
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From: Forsyth, Montana
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 - posted 03-08-2012 07:20 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
You guys just don't get it, do ya. Disney has the same problem with you that the theater industry has with the general public. To wit: It costs way more these days to build a theme park attraction that will draw hordes of people...Disney is spending over a BILLION dollars on Fantasyland at the Magic Kingdom in Florida, and I think they've spent TWO BILLION re-making the California Adventure park. There aren't enough people going there to make it work for less than they charge. The same holds true for the theater industry.

quote: Tony Bandiera Jr
So your $5-$10 per hour becomes closer to $80-$100 per hour.
You're using fuzzy math there. $5 - $10 is for one person; $80 - $100 is for a family. If there are five people in a family, then your first figures should be $25 - $50. Not quite such a striking difference then, is there.

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Louis Bornwasser
Film God

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From: prospect ky usa
Registered: Mar 2005


 - posted 03-08-2012 08:15 PM      Profile for Louis Bornwasser   Author's Homepage   Email Louis Bornwasser   Send New Private Message       Edit/Delete Post 
Many entertainment decisions do not stand up to the fact of logic. When "spoiling oneslf" sometimes overspending is the point. Louis

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Mike Frese
Master Film Handler

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


 - posted 03-08-2012 08:22 PM      Profile for Mike Frese   Author's Homepage   Email Mike Frese   Send New Private Message       Edit/Delete Post 
Mike B.
You do not take a compliment very well!

A single screen theater actually has one of the highest cost to run as there is very little operating leverage. For that reason, they are very hard to keep in operation for a long time. (another compliment for you Mike).

You can run 1-4 screen with pretty much many of the same operating costs. Marketing, labor, telephone, even a 4 screen does not need that much bigger of a lobby or bathrooms. All exhibitors pay for parking one way or another. Yes you will need more space for auditoriums.

So anyway, the Carmike in Billings (Shiloh) charges approx. $15+ for a 32 oz drink and a 130 oz popcorn. That is almost 3x what you and I charge.

Again we are not the issue and are probably growing year after year. I am, are you Mike?

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Monte L Fullmer
Film God

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From: Nampa, Idaho, USA
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 - posted 03-08-2012 08:25 PM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
I like the "grocery store" comparison do to the simple fact that people "need" a grocery store to buy things of need, thus the business stays pretty constant - to supply the people's needs.

The movie cinema is the opposite since people "want" to go the movie due to their choice of "want", thus the business relates to the people's wants.

With this, the cinemas (and other entertainment events in a whole) have to adjust due to this instability of business flow - to maintain a profit margin to keep the same level of survival.

It's pretty obvious that a lot of people never had their own business to understand WHY upcharging is needed to stay in business - be it a small or large percentage of upcharging.

Thus, they feel "victimized" in having to spend more at the cinema than at the grocery store for the same item in size..and just want to prove a point that they ARE victimized and treated unfairly.

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Mandy Crisbe
Film Handler

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From: Woodside, New York, USA
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 - posted 03-08-2012 10:50 PM      Profile for Mandy Crisbe   Email Mandy Crisbe   Send New Private Message       Edit/Delete Post 
Indeed, this is a serious problem especially to avid movie goers. There are few things on earth that individuals whine about more than movie theater concession costs. There is little one can do about them, though, because without high concession costs, theaters wouldn’t be able to keep their doors open. Article Source: Good reason exists for movie theater concession prices

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Jim Henk
Master Film Handler

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From: San Diego, CA
Registered: Feb 2006


 - posted 03-09-2012 01:08 AM      Profile for Jim Henk   Email Jim Henk   Send New Private Message       Edit/Delete Post 
quote: Justin Hamaker
Jim: The one thing I get annoyed with is when people refer to the most expensive options and then dismiss a movie as too expensive.

Here's what I mean using my theatre's prices:
4 x 2D matinee = $28.00

Justin,
First, prices in Lakeport for a regular 2D movie are certainly less than in an area like here in San Diego. Prices here for two adults and two kids goes for around $39.00. Just took a sampling of four typical chain theatres, and averaged out the results to get that number.

But more importantly, my point was that with snack prices so high, (justifiably, I'll surely grant) and ticket prices so high, is it any wonder that attendance is low? I mean, wouldn't families drool over waiting for the DVD/Blu-Ray/NetFlix/Streaming, pop some Orville Reddinbacher at home, and save a lot?

In this economy, people are saving on everything. Why wouldn't they do the same here? That's what I was referring to when I mentioned the business model problem.

High prices needed? Undoubtably. Workable? That seems to be more like the question.

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Monte L Fullmer
Film God

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From: Nampa, Idaho, USA
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 - posted 03-09-2012 01:49 AM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
..but, people will still go out to be entertained..and most can't find that at home.

They love the trill of new entertainment.

As for the two locations mentioned above: it's all market area driven.

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Justin Hamaker
Film God

Posts: 2253
From: Lakeport, CA USA
Registered: Jan 2004


 - posted 03-09-2012 03:16 AM      Profile for Justin Hamaker   Author's Homepage   Email Justin Hamaker   Send New Private Message       Edit/Delete Post 
Jim, just to be clear, that post wasn't intended to be a jab at you. It was intended to be more of an observation about how the people who complain the most about the prices are the ones who are buying far more than what is "necessary", or choosing to go to premium shows instead of matinees.

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Edward Havens
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From: Los Angeles, CA
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 - posted 03-09-2012 03:26 AM      Profile for Edward Havens   Email Edward Havens   Send New Private Message       Edit/Delete Post 
Screw California Adventure. I'm talkin' 'bout DISNEYLAND. A bunch of refurbishments (Star Tours, Pirates and the Castle being the most recent) and re-opening Captain EO in the past couple years, sure, but hasn't had a truly new ride since Buzz Lightyear's Astro Blasters in 2005. Before that? Indiana Jones in 1995.

14m visitors a year to Disneyland (not counting California Adventure), at roughly $70 per ticket, taking in to account discounted and multi-day and/or multi-park passes, and you're talking $980,000,000 per year solely on admissions, on land that was purchased dirt cheap sixty plus years ago, housing buildings that mostly date back thirty plus years, with upgrades done every twenty years or so.

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Mike Frese
Master Film Handler

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


 - posted 03-09-2012 08:20 AM      Profile for Mike Frese   Author's Homepage   Email Mike Frese   Send New Private Message       Edit/Delete Post 
quote: Mandy Crisbe
Indeed, this is a serious problem especially to avid movie goers. There are few things on earth that individuals whine about more than movie theater concession costs. There is little one can do about them, though, because without high concession costs, theaters wouldn’t be able to keep their doors open. Article Source: Good reason exists for movie theater concession prices
This is a great example of what I am talking about. A great reason for high concession prices is the lie that has been allowed to perpetuate. From the above article:

Hollywood still takes a portion once tickets are sold. According to the Wall Street Journal, 90 percent of ticket revenue from blockbuster movies goes straight to the studio on opening weekends and up to several weeks after release.

That is just outright false. The article shows horrible journalism to:

Tickets are the bigger portion of the bottom line. According to the Boston Globe, Regal Cinemas reported ticket revenues of $1.7 billion and concession revenues of $697 million, after spending $907 million for film rental and advertising and $105 million for concessions in 2007. In other words, the chain’s profits were roughly a 60-40 split, but the costs of getting films to show was eight times that of concessions, so concessions are actually more profitable.

That paragraph obviously contradicts the earlier.

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Mike Blakesley
Film God

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


 - posted 03-09-2012 10:00 AM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
quote: Edward Havens
14m visitors a year to Disneyland (not counting California Adventure), at roughly $70 per ticket, taking in to account discounted and multi-day and/or multi-park passes, and you're talking $980,000,000 per year solely on admissions, on land that was purchased dirt cheap sixty plus years ago, housing buildings that mostly date back thirty plus years, with upgrades done every twenty years or so.
You need to think about what Disney does in terms of refurbishments, enhancements, etc. It's a lot more than every 20 years. They are ALWAYS rebuilding or refurbishing or adding something. (If you don't believe that, check out miceage.com and look at the weekly updates.)

And also remember that there are a FEW other expenses involved in running that place, such as...payroll, taxes, insurance, lawyers, security, advertising, utilities, repairs (not counting refurbs), etc. What you said is no different than those people who think theaters are RAKING IN huge profits on concessions without any consideration of all the other operating costs.

I'm not trying to be a big Disney defender here....I've had my gripes with them too, as any regular reader of this board might know. But if they were to suddenly drop their price to what a lot of complainers consider "reasonable," they'd be out of business pretty quickly. Just like movie theaters would..

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