Movie prices on the rise
GMs: Wholesale costs, pressure from movie companies to blame
By Bret Hayworth Journal staff writer | Posted: Thursday, May 22, 2008
Darin and Sara Anderson buy matinee movie tickets early Sunday afternoon from Kyrie Harris at Promenade Cinema 14 in downtown Sioux City. (Staff photos by Jim Lee)
SIOUX CITY -- Inflation has hit the box office.
While Hollywood executives no doubt enjoy seeing movie revenues rising, theatergoers aren't so jazzed to fork out more to see the latest blockbuster. As the summer movie season arrives big and bold today with the arrival of the first Indiana Jones movie in 18 years, it will cost considerably more to see if Indy's fedora stays on -- even if you go to the matinee.
The spread between the cost to attend an evening movie and a matinee (beginning before 6 p.m.) is narrowing. After the latest price increase at Southern Hills Cinema, the cost is now $8.50 at night for adults and $7 for adults for matinees, although it's less ($6) for senior citizens and children ($6). By comparison, in January 2005 it cost $4.50 for an adult matinee at the mall theaters, while the price was $5 at downtown Promenade 14 Cinema in November 2006.
Back in late January, getting a large pop and large popcorn at Southern Hills cost a combined $10.50. Four months later, the two sell for $11.60, a 10 percent jump. It's seven dollars alone for the large popcorn, the same price as the matinee film ticket.
"I would not pay $7 for a popcorn," said Linda Kempers, before entering a "What Happens in Vegas" matinee Wednesday.
Kempers and fellow Sioux Cityans Marcy Bunkers and Kaye Wigton generally go to a film each week. Bunkers said she's noticed the rise in matinee prices, but doesn't want to give up taking in movies. But $7 giver her pause, she said.
"That's a lot of money, especially when you can wait a few months and get it on DVD," Bunkers said.
"We're not New York," Kempers said of evening prices pushing $10.
Promenade 14 Cinema manager Scott Rhoads acknowledged the price spread between evening and matinee films is narrowing. Southern Hills Cinema general manager Brent Monckton said the spread is "the closest I've seen it in the 20 years I've been in the business."
The Southern Hills Cinema price increase to $7 came in April. Monckton said price is somewhat dictated by the Carmike chain, and he wants to stay near what competitor Promenade charges. He said movie companies want the highest grosses possible, so in deciding which theaters to have movies shown, they'll lean to those charging the most in a market.
"They are gonna put the movie where the money is," Monckton said.
Rhoads said ticket and concession prices are rising in 2008 for a host of reasons -- Iowa has had two increases in the minimum wage in the last year, concession wholesale prices are up and the cost of removing garbage from the theatre is rising.
Monckton also blamed increasing costs on the increase in the minimum wage, up $2.10 per hour to $7.25.
"In order to make our business profitable, we need to adjust our own pricing structure," Rhoads said.
Rhoads said he recognizes the inflationary economy is impacting people with rising gas and food prices. But he said people working with tight personal budgets will still go to movies, "because it's an escape."
Carter Vahle of Sioux City took his son Landon, 5, to a "Speed Racer" matinee Wednesday.
"I usually go to matinees, because they aren't crowded. It isn't about the money," Vahle said. "I figure if they're under 10 bucks, it's pretty reasonable."
There are still bargains to be had. Rhoads said for about two months Promenade has been offering A.M. Cinema -- a few screens with movies at 11 a.m. on Fridays, Saturdays and Sundays are priced at $5, two dollars less than the following matinees.
The A.M. Cinema shows have been successful, he said, especially with family films. But they're generally not quite as full as the other matinee shows, Rhoads said.
There is a third option in Sioux City to the first-run Southern Hills and Promenade theaters -- the Riviera Theatres in downtown Sioux City. All shows are $3 there, and Riviera owner Eric Hilsabeck likes his niche for drawing in price-sensitive moviegoers.
"I always think it's good when they (competitor prices) go up, because we're not going to go up and it makes us a more viable option," Hilsabeck said. "More people start thinking of ways to save money, and that always going to help us."
Bret Hayworth may be reached at (712) 293.4203 or brethayworth@siouxcityjournal.com
While Hollywood executives no doubt enjoy seeing movie revenues rising, theatergoers aren't so jazzed to fork out more to see the latest blockbuster. As the summer movie season arrives big and bold today with the arrival of the first Indiana Jones movie in 18 years, it will cost considerably more to see if Indy's fedora stays on -- even if you go to the matinee.
The spread between the cost to attend an evening movie and a matinee (beginning before 6 p.m.) is narrowing. After the latest price increase at Southern Hills Cinema, the cost is now $8.50 at night for adults and $7 for adults for matinees, although it's less ($6) for senior citizens and children ($6). By comparison, in January 2005 it cost $4.50 for an adult matinee at the mall theaters, while the price was $5 at downtown Promenade 14 Cinema in November 2006.
Back in late January, getting a large pop and large popcorn at Southern Hills cost a combined $10.50. Four months later, the two sell for $11.60, a 10 percent jump. It's seven dollars alone for the large popcorn, the same price as the matinee film ticket.
"I would not pay $7 for a popcorn," said Linda Kempers, before entering a "What Happens in Vegas" matinee Wednesday.
Kempers and fellow Sioux Cityans Marcy Bunkers and Kaye Wigton generally go to a film each week. Bunkers said she's noticed the rise in matinee prices, but doesn't want to give up taking in movies. But $7 giver her pause, she said.
"That's a lot of money, especially when you can wait a few months and get it on DVD," Bunkers said.
"We're not New York," Kempers said of evening prices pushing $10.
Promenade 14 Cinema manager Scott Rhoads acknowledged the price spread between evening and matinee films is narrowing. Southern Hills Cinema general manager Brent Monckton said the spread is "the closest I've seen it in the 20 years I've been in the business."
The Southern Hills Cinema price increase to $7 came in April. Monckton said price is somewhat dictated by the Carmike chain, and he wants to stay near what competitor Promenade charges. He said movie companies want the highest grosses possible, so in deciding which theaters to have movies shown, they'll lean to those charging the most in a market.
"They are gonna put the movie where the money is," Monckton said.
Rhoads said ticket and concession prices are rising in 2008 for a host of reasons -- Iowa has had two increases in the minimum wage in the last year, concession wholesale prices are up and the cost of removing garbage from the theatre is rising.
Monckton also blamed increasing costs on the increase in the minimum wage, up $2.10 per hour to $7.25.
"In order to make our business profitable, we need to adjust our own pricing structure," Rhoads said.
Rhoads said he recognizes the inflationary economy is impacting people with rising gas and food prices. But he said people working with tight personal budgets will still go to movies, "because it's an escape."
Carter Vahle of Sioux City took his son Landon, 5, to a "Speed Racer" matinee Wednesday.
"I usually go to matinees, because they aren't crowded. It isn't about the money," Vahle said. "I figure if they're under 10 bucks, it's pretty reasonable."
There are still bargains to be had. Rhoads said for about two months Promenade has been offering A.M. Cinema -- a few screens with movies at 11 a.m. on Fridays, Saturdays and Sundays are priced at $5, two dollars less than the following matinees.
The A.M. Cinema shows have been successful, he said, especially with family films. But they're generally not quite as full as the other matinee shows, Rhoads said.
There is a third option in Sioux City to the first-run Southern Hills and Promenade theaters -- the Riviera Theatres in downtown Sioux City. All shows are $3 there, and Riviera owner Eric Hilsabeck likes his niche for drawing in price-sensitive moviegoers.
"I always think it's good when they (competitor prices) go up, because we're not going to go up and it makes us a more viable option," Hilsabeck said. "More people start thinking of ways to save money, and that always going to help us."
Bret Hayworth may be reached at (712) 293.4203 or brethayworth@siouxcityjournal.com
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