INTEL SOURCE LINK: Smartmoney.com
Movie theaters are pushing 3D screenings and fancy new amenities to justify higher ticket prices, but experts say there are still bargains at the box office.
Given the choice between seeing a movie in a regular screening or 3D, more consumers are opting for the latter — and are paying a premium of $3 to $4 over the regular ticket price, says Jeffrey Logsdon, an industry analyst for BMO Capital Markets. When a movie is shown in both formats, 3D represents half of ticket sales, up from 40% in 2010. IMAX movie showings, which carry a roughly $5 price premium, are also rising in popularity, he says. In fact, not counting 3D screenings, the average price of a movie ticket nationwide actually dropped during the first three quarters of 2011, from $8.06 to $7.96, according to the National Association of Theatre Owners.
Experts say the high-tech showings are part of a broader industry trend to turn a movie outing into a fancier experience, replete with cushier seats, gourmet concession offerings and special events. Ironically, such offerings are becoming more popular because consumers have been cutting back in recent years, making the trip for fewer films and spending less at the concession stand, says Agata Kaczanowska, an industry analyst for consulting firm IbisWorld. “Theaters are looking to have wider profit margins per customer,” she says. A better experience, even at a higher price point, may be attractive to moviegoers, she says.
But industry experts say bargain-hunters still have plenty of ways to cut the bill for their movie habits. Below are six.
Read Full Article…
PDF
