4 ms·
As I said in the original post, you wouldn't charge at a single ticket rate, you'd price it based on what worked. My assumption would be that most people would
by Tyrannosaurs 14y ago
As I said in the original post, you wouldn't charge at a single ticket rate, you'd price it based on what worked. My assumption would be that most people would watch with maybe one other person and that the price would reflect that.
As I also said they lose the ability to up sell you highly profitable popcorn, you lose travel costs, the lose some overheads (but gain others) - there are a whole bunch of things to figure in. The release day cost of a movie rental wouldn't be a single cinema ticket price and it certainly wouldn't be a current rental cost. Off the top of my head I think you'd be looking somewhere around two to three times average cinema ticket prices, possibly varying by time (weekend evenings might cost more).
The last sentence is a good thing for them though not a bad one. If you watch 3 movies a week instead of one and pay on average $5 instead of $10, they've still got $15 instead of $10. Their costs will likely only be marginally higher with three movies vs. one (most of it being the infrastructure) which means that their overall profit is likely up.
You don't optimise a business for revenue, you optimise it for profit.