CHARGING A PREMIUM FOR MOVIES, AT A COST


Would you go to the movies more if tickets cost less?
8/31/2011

After years of grumbling about steadily rising ticket prices, consumers achieved the nearly unthinkable earlier this year: they forced a momentary drop in the average cost of a movie ticket, to $7.86 in the first quarter, down from $8.01 in the fourth quarter of last year, partly by opting out of costly 3-D tickets for movies like Mars Needs Moms, and watching films in cheaper 2-D.

But prices started rising again this summer. In a conference call with investors on Thursday, executives of the Regal Entertainment Group, the nation’s largest theater chain, predicted the usual average price increase of 3 percent or more across the industry by year’s end. If so, it will be the 17th consecutive annual increase in a business whose prices have outpaced the effect of general inflation by more than half since 1999. Theater attendance has fallen by about 10 percent in that period, or even more when measured as a share of the growing population. 

By Michael Cieply as seen in The New York Times