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Movie theaters do not make money off of ticket sales, but concessions. I imagine that AMC worked out a subscription-sharing model with the studios, where the s
by bduerst 7y ago
Movie theaters do not make money off of ticket sales, but concessions.
I imagine that AMC worked out a subscription-sharing model with the studios, where the subscription fee is split across the movies attended. As long as people show up to movies, a percentage are buying concessions and AMC is making money.
- scarface74 7y agoNo, they negotiated that every movie seen is priced at $8.99 regardless of the format. Here is a complete write up of the financials. https://www.fool.com/investing/2018/07/10/theres-1-potential-danger-in-amcs-new-subscription.aspx https://www.fool.com/investing/2018/07/10/theres-1-potential...
- listenallyall 7y agoYour own link says AMC chose that price point and asks whether studios will go along. There was no negotiation.
- scarface74 7y agoAre you purposefully being pedantic? What word would you use when two parties make an agreement when either can say no?
- rahimnathwani 7y ago"Movie theaters do not make money off of ticket sales, but concessions." Both ticket sales and concession sales have positive gross margins, and contribute to the bottom line. If you artificially separate a cinema business into two pieces, making the 'ticket sales' business responsible for 90% of the overheads (rent etc.), and the concessions part responsible for 10%, then it would appear that the 'ticket sales' business does not make money. But, in reality, the tickets sales revenue is required in order to run the business, not just to draw in customers for the 'concessions' business, but also to help pay for rent.
- m463 7y agoLast time I went to AMC they were selling a $14 pretzel.