Plea to Theatres: Lower Your Ticket Prices!

The couple on a first date may need to rethink plans of dinner and a movie. Spending $30 for the entire night sounds normal, but spending $30 solely at the movie ticket counter sounds ridiculous. That is what it has come to. Especially in cities such as Los Angeles and New York, tickets have been sold for as much as $15 a piece. Tickets at that price and any concessions purchased leads to an expensive movie-going trip. For this reason, many people are staying away from the theatres and investing time and money into other ways of watching films. Although their revenues have increased over the past few years, theatres should consider lowering the prices of movie tickets not only because of the low number of visitors, increased number of movie rentals, and the rise of movie piracy, but most importantly to bring back the enjoyment of the movie-going experience.

Since 1995, the average ticket price has increased by more than two dollars, according to Lee's Movie Info. Today the average price is $6.88, which may surprise people in the larger, more populated cities in the US, where tickets can be seen for around $12, but that average includes discounts for matinees, seniors and children. Because of the high price, though, theatres and studios are bringing in more money than ever, even with a decline in ticket sales (seen on the left). As the chart shows, the number of movie tickets sold in 2002 was 1.61 billion. In 2007, 1.4 billion tickets were sold. These two numbers display the greatest difference in the revenue for each year. Ticket sales in 2002 brought $9.34 billion, and 2007 raked in $9.6 billion. The only explanation for this increase of revenue alongside a decrease of ticket sales is the rise of the ticket price. In response to this, more people are choosing to stay home.

To beat the cost of movie tickets, more and more households are making the investment in home entertainment centers. In a survey conducted by ABI Research in December of 2007, 38% of respondents said they owned home theatre systems. Big screen televisions, video projectors, high-definition sets and surround sound systems are purchased with hopes of simulating the experience of watching a movie in the theatre. This experience is oftentimes even better than the real thing. In a home theatre, there are no worries for the obnoxious noises of strangers, the film can be paused, the sound can be increased or decreased, and concessions are more easily available (at a more reasonable price). The home entertainment centers are more appealing now with the expansion of numerous resources of film access. High numbers for Blockbuster and Netflix in 2007 prove that more individuals prefer to stay home to watch their movies. Seeing these numbers led Apple to provide a rental service through its own iTunes. The online rental store gives quick and easy ways to attain and watch movies in the comfort of the home.

The cheapest way to view a film also happens to be very illegal. The advancements of computer technology have brought about the ability to download movies off of the Internet. Peer-to-Peer (P2P) networks allow individuals to post and share films, recorded straight from the theatres or ripped from DVDs. Sometimes movies can be downloaded even before their release in theatres. The Motion Picture Association of America (MPAA) released a study in 2006 stating that the US lost $1.3 billion to piracy the previous year. The illegal trade also had an astounding economic impact. The Institute for Policy Innovation (IPI) concluded that piracy resulted in $5.5 billion in lost annual earnings among US workers, 141,030 jobs lost, $837 million in lost annual tax revenue and $20.5 billion in lost annual output to all US industries. The illegal sharing of movies is clearly having a negative impact, but the blame must be put on the high price of the theater movie ticket.

Amidst the dropping number of movie tickets sold, a few people think they can bring more people back to the theatres. Village Roadshow Ltd., Act III, Lambert Entertainment and the Retirement Systems of Alabama pension fund have partnered to bring the luxury cinema circuit Village Roadshow Gold Class Cinemas to the US, according to Variety. Over the next five years, fifty “high-class” theatres (seen on the right) will be developed that feature reclining chairs with footrests, digital projection and the capability to screen 2-D and 3-D movies, as well as a lounge and bar, a concierge service and valet parking. Graham Burke, managing director and CEO of Village Roadshow Ltd, claims, "It's like what Mercedes is to a Toyota or like flying first class in an airplane." But with high-end moviegoing comes a great ticket price: $35 a person. Reason behind the price is difficult to understand. The group responsible for these new theatres is trying to get people out of their houses to see films, but by getting them into luxury theatres, the group is merely charging individuals for an environment they can get at home. Reclinable chairs, an array of drink and food choices, and a quieter, smaller audience are all amenities that can be received at home. Gold Class Cinemas will be popular at the time of their release and will be worth visiting at least once, but I do not see luxury theatres bringing about more ticket sales.

There is something special about sitting in a dark, quiet theatre with a bag of popcorn in hand watching a new movie. The experience has been cherished since the first movie theatres were established. By increasing ticket prices, theatres are taking away this special experience from the public. I admit that I am guilty of finding cheaper ways of watching movies, whether honest or not. Seeing a double-digit number for the price of a ticket at the theatre is depressing. I hope that the theatres will see the trends of the American moviegoing audience. No one should have to spend an outrageous amount of money to escape from the daily routines of life and enjoy an imaginative visual exploration on the big screen.