research of movie ticket's price

this points out the weakness of cinema

but also i think we can turn the weakness

to benefit as cinema providing

'a complete movie experience' to the

audience. DVD can save more but never

give you this kind of visual and sound effect.

The rising costs of movie tickets and concession
items have many staying at home rather than attending
movies at theaters. A survey conducted by the American
Association of Retired People show that 40% of seniors
no longer attend films because they can no longer afford
the prices. Fewer sold movie tickets tends to cause some
panic to movie executives, who earn most of the profits
from sales of these. Fewer people going to films, and
increasing expense of making films both contribute to
higher prices for movie tickets.

The average non-matinee movie ticket now costs about
10 US dollars (USD). Popcorn costs about six USD,
and a drink, about four USD. Thus, the average expense
at a theater is about 20 USD. For a family of four, that’s
approximately 80 USD for two hours of entertainment.

One can buy a DVD player for approximately 40 USD and
a DVD rental is about four USD. Popcorn and soda for a
family costs about 10 USD. That’s 54 USD for a family
movie night at home. Plus, one doesn’t have to pay for
gas or parking. Since one now owns the DVD player,
the next movie night may cost about 14 USD.
The expense of concession stands has much to do with the
way in which movie studios are reimbursed by local theaters.
In the first week of a film’s release, the studio may make as
much as 90% of the revenue from sales of movie tickets.
So while movie tickets are high priced, they are not benefiting
the theater tremendously. Each subsequent week the film
brings greater revenue to the theater. So seeing second
run films tends to mean one is giving more money to the
theater and less to the studio.

The question is, do the studios need to charge so much?
That’s a debatable point. Some of the best films are made
on fairly low budgets. Some high budget films are not well received,
such as the colossal failure of the film Pearl Harbor.
In general a studio makes up for its losses on high budget films by
earning higher returns than expected on low budget films.
While actors make a great deal of money, they are not the only
reason for high cost of movie tickets. If one ever takes the time to read
the end credits of a film, one will see huge numbers of people
employed by large productions: from gaffers, to film assistants,
to animators, to casting assistants, to art or set designers.
Many of these people work in unions that set specific prices for work.
Thus budgets for films that require a high number of
employees are going to be very expensive.
This does not mean, of course, that studios don’t turn
a profit. In fact the largest studios make a great deal of money.
However, since people are seeing fewer films in the theater,
the movie tickets now reflect the price of the increasing gamble
studios take when producing a high budget film.
However, many in the US simply can’t keep up with prices
of movie tickets. A sixteen year old making minimum wage
must work nearly four hours to afford seeing a film and
purchasing concession items. Movie tickets for a poorer family
might be 10% of a family’s weekly income. To an increasing
number of people, movie tickets are now too high a price to pay
for entertainment, especially when film rental is
significantly less expensive.

Further information:
http://www.wisegeek.com/why-are-movie-tickets-so-expensive.htm