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> Since 2002, ticket prices have increased by 54%, while ticket sales have fallen 22%. The movie-theater industry seems to make it seem like the former is a re
by joshwa 8y ago
> Since 2002, ticket prices have increased by 54%, while ticket sales have fallen 22%.
The movie-theater industry seems to make it seem like the former is a reaction to the latter, but it's probably the opposite.
Wouldn't the rational economic reaction to falling ticket sales be to reduce prices?
- kemitche 8y agoIt's rational only if you expect that lowering prices would result in enough additional volume to increase profits. If you can boost your prices by 50% and only lose 20% of your sales, that seems like a win in terms of net profit.
- ghaff 8y agoEspecially when there are so many other forces that probably are causing people to go to movies less. Other entertainment options (no streaming in 2002). Bigger/better TVs in many homes. Honestly, you could tell me I could go to a local movie theater for free and it wouldn't change my behavior (to rarely go) one bit.