Many struggling cinemas depend on sales of pricey food and drink as ticket revenue mainly goes to film studios. But does banning outside supplies really add up, asks Stuart Heritage
Unfortunately they’re trapped. If they lowered the price of food and raised the price of admission to compensate people wouldn’t notice. In fact, they wouldn’t even make it to the food to see, they’d just know that one cinema has $10 admission and the other has $20.
They could advertise that they have lower concession cost to attract people, but there would be enough people thinking “I’ll just go to the cheap one and bring my own food/not buy food.” that momentum wouldn’t move into their favor.
I don’t really know anywhere that’s just a cinema these days anyway. I know of arcades, mini golf places, restaurants, soft play areas, etc that also have a cinema
Keep in mind that you have fancy media devices at home. Cinema served a purpose that may not be as necessary now. That said, cinemas have always made money on food and not on tickets. It will die, but it’s not like they are stupid people suddenly for doing this.
I have a more cynical view where it’s the smaller ones that die and the market just turbo consolidates, and the remaining cinemas get even shittier since there will be always people who probably go to cinema no matter what
Though the possible advantage of that is the bargaining power of the cinemas increases compared to the distributors… as if cinemas should have some form of union ;-)
Cinemas: our business model sucks so much we have to sell overpriced food!
So? Just die already. Bye.
Unfortunately they’re trapped. If they lowered the price of food and raised the price of admission to compensate people wouldn’t notice. In fact, they wouldn’t even make it to the food to see, they’d just know that one cinema has $10 admission and the other has $20.
They could advertise that they have lower concession cost to attract people, but there would be enough people thinking “I’ll just go to the cheap one and bring my own food/not buy food.” that momentum wouldn’t move into their favor.
I don’t really know anywhere that’s just a cinema these days anyway. I know of arcades, mini golf places, restaurants, soft play areas, etc that also have a cinema
Standalone cinemas are still the norm in NZ.
The odd one is part of a larger entertainment complex.
It’s like this in Australia, too. Sometimes cinemas here have a couple of arcade machines off to the side in the foyer, but that’s about it.
That sounds like the invisible hand of the market weeding out failing competitors.
Keep in mind that you have fancy media devices at home. Cinema served a purpose that may not be as necessary now. That said, cinemas have always made money on food and not on tickets. It will die, but it’s not like they are stupid people suddenly for doing this.
Cinemas made all their money on tickets before TV.
Then TV came along, then ridiculously predatory movie distribution contracts, then the Internet.
Their response? Apparently. Using the police to enforce their terms of service regarding food sales.
What’s next; calling the police when you don’t watch the advertisements?
The police were called for trespass after the patron(s) refused to leave for violating the rules. There’s a difference.
Hanging around in the foyer to try and argue the point is not leaving.
Obviously it was excessive, but they’re still within their rights to have someone removed.
That’s the only bit that matters.
I have a feeling you or a member of your family owns a struggling (dare I say failing) theater.
LOL I don’t even go anymore. It’s a washed up format.
Would suck not being able to watch movies on the big screen imo
If enough of them die, then that particular market will need to correct. The movie industry needs consumers.
Or, to put it another way, the current business models need to die, so they can be replaced with better models.
I have a more cynical view where it’s the smaller ones that die and the market just turbo consolidates, and the remaining cinemas get even shittier since there will be always people who probably go to cinema no matter what
Hmm. Yeah. That is exactly what would happen.
Though the possible advantage of that is the bargaining power of the cinemas increases compared to the distributors… as if cinemas should have some form of union ;-)