Going to the movies with friends and family is a cherished tradition for many, but the rising cost of movie tickets and snacks has become a cause of concern among cinema-goers. Popcorn, in particular, has become synonymous with the cinema experience, yet its increasing price has led to criticism and complaints from patrons.┬а
So what makes it so expensive?
No Competition Within the Theatre Premises
Once the audience enters the theatre, there is no direct competition for the theatre’s F&B offerings. This lack of competition eliminates the need for theatres to match market prices, allowing them to impose a significant markup on food and beverages.
In addition, with the transition from single-screen cinemas to multiplexes, operational costs have risen due to the larger halls, multiple projection rooms, sound systems, and increased air conditioning requirements.
Secondary Spending
The primary expenditure for moviegoers is buying tickets, and F&B is considered secondary spending. The theatre’s strategy is to offset the costs of lower ticket prices by increasing the markup on snacks and drinks.
Research from Stanford GSB and the University of California supports this notion, as lower ticket prices attract a larger audience, ultimately leading to increased foot traffic.
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Competing with OTT Platforms
In recent years, the rise of Over-the-Top (OTT) platforms like Netflix and Hotstar has posed a significant challenge to traditional cinema halls. The pandemic further accelerated this shift, causing theatre closures and a shift in content consumption.
To counter this trend, cinema halls are striving to create an unparalleled experience that cannot be replicated in a living room. The costs of advertising the movie experience and showcasing films, combined with the fees for highly paid A-list stars, contribute to the inflated prices of movie snacks.
PVR Chairman’s Perspective
Ajay Bijli, the Chairman and Managing Director of PVR, acknowledges consumers’ concerns regarding high snack prices in movie theatres. He attributes the high cost of F&B to the ongoing transition from single screens to multiplexes in India.
With the expansion to more screens, operational costs increase substantially due to the need for multiple projection rooms, sound systems, and full air conditioning in foyers.
The high cost of popcorn and other snacks in movie theatres can be attributed to several factors. The absence of direct competition within the theatre premises, coupled with the transition from single screens to multiplexes, leads to higher operational costs.
To accommodate lower ticket prices and attract a larger audience, theatres mark up their F&B offerings significantly. Additionally, the competition posed by OTT platforms has forced cinema halls to invest heavily in creating an exclusive movie-watching experience, further driving up expenses.
What is your favorite movie-going experience? Let us know in the comments.
Image┬аCredits:┬аGoogle Images
Sources: The Quint, BangaloreMirror, NDTV
Find the blogger: Pragya Damani
This post is tagged under: popcorn, popcorn so expensive, no competition, secondary spending, competing with OTT platforms, PVR chairman, Ajay Bijli
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