AMC Raises ticket prices

This is true, the first two weeks all profits go to the studio. The theatre only makes profits after two weeks.

 

$3.75 before 6. Prices have actually gone up 50 cents in the last few months.

 

Could transport costs of candy be the reason? I doubt they spend much on gas moving a couple film canisters.

Alamo Drafthouse is still like $6.00 for students. Yeah, I still use my student ID, and I probably will until my student loans are all paid.

 

It used to be true but it isn't any more.

 

Prices have increased because our willingness to pay has increased. Theaters are probably not using a cost-plus pricing model; they will charge as much as they can get away with and still have people show up.

 

I think it might have more to do with the decreasing number of people going to the movies.

 

doesn't that go against the principles of supply and demand? less people show up, so you charge more?

 

not when you consider the type of service.

It is non-excludable meaning multiple people can use the same service. Unlike a hamburger or something, where if you eat it then its over.

The operating costs are the same so if less tickets are sold the price must go up. They are not making a product.

 

Also, I did just read somewhere recently that attendance has been up the last few years.

And consider that box office revenues hit new records year after year after year starting in 1993 and continuing through 2004. 2005 was way down but 2006 was up again and 2007 was a new record.

So even if attendance is falling, revenues are (usually) rising.