only loews raised their ticket prices to 10.00, starting this friday.
amc will not follow, but they have only one megaplex in the city.
the remaining competition are likely to follow loew's example soon.
ticket prices were raised because of oversupply - too many theatres
concentrated in one tight island. their rents must be exhorbitant,
and they only generate real revenue off of their concession sales.
theatres must fork over to the studios 80% of the first week's
box office take on all newly released films. that percentage goes
down with each subsequent week but doesn't break 50% until about
the fifth or sixth week, when the film may have died and box office
receipts sputtered to nothing.
so they turn to us poor slobs to bridge their budget gaps. the worse
part is the public backlash. the higher the ticket price, the more
discriminating the consumer becomes. that translates to smaller box
office returns, which in turn will cause ticket prices to be raised
again. poorly performing theatres will need to be closed to prop the
lucky few if we are going to see any long term stability in ticket
prices, especially here in manhattan.