Movies trade gargantuan fixed costs for low marginal costs. Probably a trillion dollars over the last 100 years has been spent making, distributing, and screen

Movies trade gargantuan fixed costs for low marginal costs. Probably a trillion dollars over the last 100 years has been spent making, distributing, and screening movies. Theaters are a channel where a studio can expect to put $100M in and get $75-200M out, $10 at a time. (more if you count shady Hollywood accounting). Not only do unique experiences have much higher marginal costs, there is no channel or business model for huge amounts of money to invest in producing these experiences. To put in perspective, he listed 2 experiences that might have thousands of visitors a week. Eyeballing last week's box office results, it looks like ~$150M across major movies. That means 15 MILLION people went to the movies last week just in the US. Movies are a cost and effort-effective way to be entertained, and a predictable and profitable way to invest huge amounts of money. That's why there's everywhere.