Thursday, January 19, 2012

Movie Theaters: Where Does All Your Money Go?

by Alyssa Patentreger
Do you ever wonder where your money goes at the movie theaters? One of the many asked questions about the movies is why it costs so much. As an employee of Regal Cinemas, I have been asked this question, and found out the answers. The movie industry is rapidly growing which means it is getting more expensive to run theaters. Many people just don’t understand that all of the ticket and concession sales don’t go directly to the theater.

Movie goers walk up to the box office and see the $10+ price for a single ticket. Most people assume that half of the money goes to the movie theater while the other half goes to the studios, which is incorrect. In the first few weeks of the shows screening, the theatre itself only gets to keep about a quarter of the money going to the tickets. That means that the theater brings in $2.40-$3.00 for each ticket. Considering how big theaters are becoming, that isn’t a lot of money. As the show is out for a few more weeks, the percentage they take in goes up, but the amount of tickets they sell is much less.

Seeing as the theaters don’t get a lot of money from ticket sales, they’re forced to rely on the concession stands. A manager from a local theater said, “We’re not in the movie business, we’re in the candy business…” It’s not the actual popcorn and soda that is expensive to provide, it’s the bags and cups they come in which is counted inventory. If you ever gone to the movies and asked for a cup of free water, you’re never given a 64oz cup, you’re given a “courtesy cup” as the theater calls it. If they give you a cup, they are actually losing money.

Your hard earned money isn’t going all to the actual theaters, which may be a surprise to you. People think the concession prices are outrageous, but they need to understand that a business is trying to be run. It’s up to you whether you want to spend that amount of money!