Why Are Movie Prices Increasing So Rapidly?

List: Posted: 03/28/11

When you take a look at the average movie prices across the country, you will notice that they are much higher than they were even half a decade ago - in some towns and cities they have doubled or even tripled.  Are movie companies getting greedy, or are there good reasons why we are being asked to pay more?  What exactly is the reason that movie prices have gotten so expensive in the last few years?

For starters, piracy has taken a major toll on local movie theaters as well as the movie industry as a whole.  Fewer people are paying to see movies, and as a result theaters are finding that they have to charge existing customers much higher movie prices just to stay afloat.  This in turn puts people off going to see movies, further reducing movie-theater custom - so the theaters have to hike up the price once again!

Of course, piracy isn’t solely to blame.  Another reason for the more expensive movie prices we see today is that cable is becoming ever more widely adopted and available, offering movies earlier than ever before.  Watch-at-home and On-Demand movie services such as Netflix are also putting another nail in the coffin of the traditional family theater, with new movies being released on Netflix a very short time after they leave the cinema.

 

Theaters are working harder to challenge companies like Netflix.  Many theaters have added new amenities as 3D capability, stadium seating, video arcades, and even restaurants in order to make them more of a destination that people want to visit.  These amenities come at a price, however, and that is reflected in ticket expenses.

Movie prices have also gone up another step since the invention of 3D films.  These movies often cost up to 10 dollars more per ticket, in order to cover ordering in the super-expensive projection equipment, and to cover the cost of hundreds of pairs of 3D glasses. 

There are many reasons why movie prices are higher than ever, but theaters are working hard to ensure that the cost is justified by the experience.

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