Thursday, June 5, 2008

Understanding Movie Prices

If you're like me.. [besides being a bit crazy] would be growing more and more annoyed at the advertisements being played in movie theatres !! Haven't seen them yet? If not please let me know, where you live, so I can start going to your movie theatre :-)

After paying $10.00 for the movie, plus $15.00 for concessions, then sitting through 30 minutes of adveritsing, finally I get to watch my movie. What's up with that?

A friend of mine used to be an assistant manager fojr a local cinema. He tells me the "secret" told to staff is that "We are not in the movie business, we are in the concession business"

Making a movie is possibly one of the best examples of teamwork/quality that can ever be accomplished. All in a fairly short timeframe, the movie maker has to get the people, get the funding making the movie, edit it, sell it to movie theatres and hope it is a sucess to pay back the people who funded it !

The initial costs for making a moving (which are in the millions of dollars) are put up by one or more investors who believe in the movie's eventual success

In a similar manner to book sales, movies pass through a specific set of stages [the "distribution" channel]

Once the movie is made, it is normally first released to theaters. 99% of the money that a movie cinema earns when a movie is first released goes back to the movie company. So when you here
the weekend box office sales (99 million dollars). This money all goes back to the movie no to the cinema.

As time passes, the %age of share that the cinema makes increases, however, normally the number of people showing up to watch the movie decreases. So the cinema has to walk a careful line between making profit of the movie and boring customers who have already seen the movie and want something else [new] to watch.

This distribution chain moves on to hotels, pay per view, video (DVD), and eventually even TV. At each point less and less money goes back to the film makers themseles. [So in theory at least, when you pirate a DVD you are robbing the distribution companies more then the film-makers themselves]

When I was younger, we used to smuggle food into the cinama. Chips/popcorn and pop because the prices at the concession stand were so expensive. It used to be that cinemas would not let you take food into the cinema and would take it from you if caught. They don't seem to care as much these days.

So advertising before your movie is a way for the cinema to make extra money. Did you know those coming attactions are advertisments? These have been going on for years, and I don't really mind them. It's the ads for cars, and similar producs that tend to drive me crazy. Is the cinema industry really that much in danger that they need to run these ads?

Oh well, I don't remember the last time I went to a movie in a cinema so what am I complaining about anyay :)

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