Theater Owners Win Game Of Chicken With Universal

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It looks like Universal has scrapped its premium video-on-demand plans for the movie Tower Heist after NATO (the National Association of Theatre Owners) threatened to boycott the movie.

Universal continues to believe that the theater experience and a PVOD window are business models that can coincide and thrive and we look forward to working with our partners in exhibition to find a way to experiment in this area in the future.
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Soooooo...when a major movie studio finally has an inkling of evolution of its business model, the dinosaurs that are the movie theaters squash it. This is why I wait for it to be available for a home theater format (DVD/BluRay/Digital Download/Streaming).
 
Wait, is this a good thing? For customers it's bad, but for theaters it's good.

Though you know, the #1 complaint of theaters is their over priced refreshments like popcorn. Besides that, there's the movie ticket prices.

Movie theaters and digital downloads can work together, so long as theaters aren't ripping off their customers.
 
Ashbringer said:
Wait, is this a good thing? For customers it's bad, but for theaters it's good.

Though you know, the #1 complaint of theaters is their over priced refreshments like popcorn. Besides that, there's the movie ticket prices.

Movie theaters and digital downloads can work together, so long as theaters aren't ripping off their customers.
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The movie theater's first two weeks when a movie comes out 100% of ticket sales does not go to the theater it goes to the movie maker. The third week they (the theater) gets 20% of ticket sales, forth week they get 40% fifth week they get 60% and sixth week they get 100%. At least long time ago that's how it was I don't know if they have changed that or not. This is why movie theater food and drinks cost so much is because the first two weeks a movie is out they do not make any money on it. All the money they make comes from concessions stands
 
soulpunisher said:
The movie theater's first two weeks when a movie comes out 100% of ticket sales does not go to the theater it goes to the movie maker. The third week they (the theater) gets 20% of ticket sales, forth week they get 40% fifth week they get 60% and sixth week they get 100%. At least long time ago that's how it was I don't know if they have changed that or not. This is why movie theater food and drinks cost so much is because the first two weeks a movie is out they do not make any money on it. All the money they make comes from concessions stands
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When i worked at the local cinema here (what a hell hole that was), the manager said they pay the rental of each movie and it ranges from 20-80 grand each movie. I found that extremely hard to believe because assuming each customer spends 20 bucks (ticket + food), even the cheapest movie, they would require 1000 customers. Of course, i've caught the manager lieing 3 times while i was working there so i took the statement with a grain of salt.

I have heard of the model you mentioned though so i think it really depends on the company and such.
 
The high prices of concession food I can get over. The high prices of tickets I can get over.
Its the annoying people, the coughing, the sneezing, the laughing, the taller person sitting in front of me, the talkers that bothers me.
When watching a movie at home, I can control all that. You talk, you walk. Everyone knows they don't talk when I watch a movie at home.
 
the-one1 said:
The high prices of concession food I can get over. The high prices of tickets I can get over.
Its the annoying people, the coughing, the sneezing, the laughing, the taller person sitting in front of me, the talkers that bothers me.
When watching a movie at home, I can control all that. You talk, you walk. Everyone knows they don't talk when I watch a movie at home.
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Alamo Drafthouse :) You talk or make noise, you get kicked out. They are serious about that stuff.
 
soulpunisher said:
The movie theater's first two weeks when a movie comes out 100% of ticket sales does not go to the theater it goes to the movie maker. The third week they (the theater) gets 20% of ticket sales, forth week they get 40% fifth week they get 60% and sixth week they get 100%. At least long time ago that's how it was I don't know if they have changed that or not. This is why movie theater food and drinks cost so much is because the first two weeks a movie is out they do not make any money on it. All the money they make comes from concessions stands
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I don't think it's 100%, I think it's closer to 80% in the opening week, but that depends on the studio. That is, for all intents and purposes, appears to be a rough approximation of how the theaters make their money.
 
chicken1.jpg
 
the-one1 said:
The high prices of concession food I can get over. The high prices of tickets I can get over.
Its the annoying people, the coughing, the sneezing, the laughing, the taller person sitting in front of me, the talkers that bothers me.
When watching a movie at home, I can control all that. You talk, you walk. Everyone knows they don't talk when I watch a movie at home.
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oh man you need to visit a Warren Theater my friend. and get the balcony seating too. No cell phones are allowed out if they even see a bright screen (texting) you get kicked out. Balcony is 21 and older too so no kids. Also no talking or you get kicked out maybe warned first but after that kicked out. It has been the best movie experience I have ever had. I wont go to another movie theater warren theater is the only I go to now.
 
I am fond of the movie tavern. They are not as strict on the talking/etc, but the seats are spaced out alot, you get a table, they serve beer and food...
 
hesho said:
When i worked at the local cinema here (what a hell hole that was), the manager said they pay the rental of each movie and it ranges from 20-80 grand each movie. I found that extremely hard to believe because assuming each customer spends 20 bucks (ticket + food), even the cheapest movie, they would require 1000 customers. Of course, i've caught the manager lieing 3 times while i was working there so i took the statement with a grain of salt.

I have heard of the model you mentioned though so i think it really depends on the company and such.
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What he said is true. A good friend of mine was a projectionist for a Regal theater here and he said the same thing. These reels cost them tens of thousands of dollars.
 
EvilWays said:
Soooooo...when a major movie studio finally has an inkling of evolution of its business model, the dinosaurs that are the movie theaters squash it. This is why I wait for it to be available for a home theater format (DVD/BluRay/Digital Download/Streaming).
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So you wait for it to be availbale for a home theater format because of something that's never happened before now? :rolleyes:

soulpunisher said:
The movie theater's first two weeks when a movie comes out 100% of ticket sales does not go to the theater it goes to the movie maker. The third week they (the theater) gets 20% of ticket sales, forth week they get 40% fifth week they get 60% and sixth week they get 100%. At least long time ago that's how it was I don't know if they have changed that or not. This is why movie theater food and drinks cost so much is because the first two weeks a movie is out they do not make any money on it. All the money they make comes from concessions stands
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Actually as of a couple years ago the first two weeks the studio gets between 90-100% of the ticket price, it depends on the theater company and the movie. Then weeks 3 and 4 studio get 40-60% and after 4-6 weeks the studio finally only gets 20% with the theater getting to keep 80% of the ticket price, but of course few movies last that long with strong crowds.

This is why theaters are forced to make their money on consessions.
 
I spent a shit ton of money on a massive TV and surround sound of epic proportions. Why would I go drop a $50 note so the wife and I can go sit with a bunch of annoying fucks in a stinkin ass theater snacking on way over priced popcorn? I can make a massive plate of nachos and drink beer at home, pause the movie to take a leak and get some knobbin.

Theater = suck
 
Movie studios want theaters. Theaters charge per ticket, VOD charges per play. That's a lot of lost revenue when people gather at home to watch a movie rather than buying a lot of tickets at the theaters. So, theaters do have some clout.
 
Bottom line is I don't really go to the theater anymore, but they just might be able to get me to pay a higher PPV price for a movie that's still new. If you make me wait a month or two months and then try to put it on PPV I'm just going to wait and rent it/buy it on Bluray.
 
I've never understood why people complain about high prices at the theater. It doesn't have to be expensive at all. I never buy any food there, and only go during their Super Bargain (4-5:30pm). It only costs $5 a ticket.
 
the best theaters are the ones that offer Beer and Great FOOD! I love getting some Pizza sitting in a recliner or couch watching a movie, i will over pay a little bit for those kind of perks.
 
The Theatre Owners cartel, acting as a monopoly engages in collusion to stop competition and progress. Sounds wrong to me.
 
What do you expect?? The theaters want to stay in business, and anything that threatens their livelihood will be resisted.

You would do the same thing.

Aside from that, I for one would eat a cup full of my own feces before I paid $60 to PVOD a movie. The only way it becomes something I'd consider is if I could charge a few bucks a head for a bunch of people to come watch it......which wouldn't happen because it's illegal to do.....and if I wanted that experience, I could just go to the theater - for LESS money.

I can take the wife to the theater, share a extra-Lg soda and popcorn there, and four candy boxes for the local convenience store for under $30. I'd be about $23 if I skip the candy.

Universal has an OK idea, but it's way over-priced.
 
This is how it should be:

$5/person Watch it in a theatre, not much privacy, may not be most comfortable etc. Food is sold AT COST.

$20/group Watch it at home. Food is "at cost" since you are at home and bought it at a grocery store.

Until these companies realize people won't just get raped because they said so, they're gonna have to deal with piracy...
 
Monkey34 said:
I can take the wife to the theater, share a extra-Lg soda and popcorn there, and four candy boxes for the local convenience store for under $30. I'd be about $23 if I skip the candy.
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$7 for four boxes of candy. Um, where are you going exactly? That would cost about $18 at the Regal cinemas here. :mad:
 
I actually like the whole theater experience. I'd still choose to go to a theater sometimes over staying home if both were at the same price person.
 
RyanLucier said:
This is how it should be:

$5/person Watch it in a theatre, not much privacy, may not be most comfortable etc. Food is sold AT COST.

$20/group Watch it at home. Food is "at cost" since you are at home and bought it at a grocery store.

Until these companies realize people won't just get raped because they said so, they're gonna have to deal with piracy...
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Uhh, so you want theatres to not have a business model at all? There's a reason why food is sold at such high prices, because it is the money maker. Don't like it? Don't buy food!
 
Marcdaddy said:
the best theaters are the ones that offer Beer and Great FOOD! I love getting some Pizza sitting in a recliner or couch watching a movie, i will over pay a little bit for those kind of perks.
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I do the same thing...from the comfort of my home.
 
Marcdaddy said:
the best theaters are the ones that offer Beer and Great FOOD! I love getting some Pizza sitting in a recliner or couch watching a movie, i will over pay a little bit for those kind of perks.
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i dont think theres anything like this in hawaii. :/ i used to work at a theater and saw about 3/4 of movies their first week for maybe a year and a half. since i stopped working there i see one every couple months when something important comes out that i want to see immediately (hp, lotr, dc/marvel, etc.) otherwise theres no way in hell im going to a theater. the experience is just shitty in every way compared to watching at home. plus im 6'5" and always feel like im ruining someone elses overpriced theater experience no matter how much i slouch.
 
BladeVenom said:
The Theatre Owners cartel, acting as a monopoly engages in collusion to stop competition and progress. Sounds wrong to me.
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So you make the "right" choice and side with the studio monopolies instead.

Oh, wait......
 
Haven't seen a movie at the theater in about 5 years.

I guess it is a combo of having a pretty decent setup now and the ever increasing rudeness of my fellow human beings. Here in San Antonio if you complain about the talking/texting/whatever, your the asshole.

Haven't tried one of the Alamo Drafthouses yet but if I do go to the theater again it will probably be to try one of those out.
 
RyanLucier said:
This is how it should be:

$5/person Watch it in a theatre, not much privacy, may not be most comfortable etc. Food is sold AT COST.

$20/group Watch it at home. Food is "at cost" since you are at home and bought it at a grocery store.

Until these companies realize people won't just get raped because they said so, they're gonna have to deal with piracy...
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You want $5 a head, try going to a drive in. :D
 
canna said:
So you make the "right" choice and side with the studio monopolies instead.

Oh, wait......
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The movie studios weren't acting as a monopoly in this instance. It was just one of them trying something new. Or wanting to try something new.
 
Stone Cold said:
Movie studios want theaters. Theaters charge per ticket, VOD charges per play. That's a lot of lost revenue when people gather at home to watch a movie rather than buying a lot of tickets at the theaters. So, theaters do have some clout.
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VOD does charge per play but its more than per ticket. From what i seen in the past these groups were saying $30 per video. Which would be the cost of a few tickets. If this actually took off they would make back the money from the VOD service. People would go from maybe only spending $16 - $20 on tickets to spending $30 at home. That might also get them sales from people that want to watch a new movie, but aren't willing to to see it in theaters. Yes right now the theaters have some clout but that is only for right now. As soon as the studios take on a new business model then the clout of the theaters starts to go away.

Bladestorm said:
I've never understood why people complain about high prices at the theater. It doesn't have to be expensive at all. I never buy any food there, and only go during their Super Bargain (4-5:30pm). It only costs $5 a ticket.
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All places have different prices though. You can't compare your prices to everyone. Its been awhile since i've been to the theater but i seem to recall it being about $6.50 for the cheaper showing around me, that was only for the first showing of the day, not during a certain time. $8.75 for normal showings. IMAX is $12. 3D movies are an extra $1.50. Some places though don't have cheaper shows, they only have normal prices.
 
I like going out to the theater to watch new movies. Sure a nice movie night consisting of a Blu-Ray movie on a nice big TV in the comfort of your own home can be nice - but I don't like to hide ALL of the time ;)
 
morfinx said:
Alamo Drafthouse :) You talk or make noise, you get kicked out. They are serious about that stuff.
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If more theaters did that, they'd prrobably see their business increase. I know I would choose that theater over any others if I had one like that in my area.

stfu or gtfo.... that's my kinda theater
 
This is how it should be:
$5 per-person
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Wrong it avg matinee $7/$8, non-matinee $10/$12 it all depend where you live.
Food is sold at cost
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Wrong Concession Stand it more 100/150% above the cost, you've helping to pay for the Lighting, Sound Systems, Heating, Air Conditioning, the Bulbs that are in the projectors which all take an awful lot of power run things and Trash, Water/Sewer Service and any repairs.

Watch it in a theatre, not much privacy, may not be most comfortable etc.
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That ture if it old stye theatre

Your forget one other thing the cost driving there and back.
For me to just get theatre and back home cost me about 3 gallon of gas $10+ just to go 45 miles round trip.

You want $5 a head, try going to a drive in
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Wrong
Drive IN are pettey much RIP and there are less 400 left open in USA with Ohio having the most open and it $20 Car, Truck or Van load last time I was there when I live in Ohio just little over year ago.
For me I'm pettey much done going to theatre it cheaper just buy the DVD or Bluray Disc and I can watch it as min times as I want:D.

For me VOD Steaing is useless to me becuase you need very highspeed internet which is something I don't have here, that wouldn't be a problem if they allow long pause buffer like Youtube and few other do where I can pause it and go do something else and wait for it reach 70% done then start playing it.
 
shspvr said:
Wrong Drive IN are pettey much RIP and there are less 400 left open in USA with Ohio having the most open and it $20 Car, Truck or Van load last time I was there when I live in Ohio just little over year ago.
For me I'm pettey much done going to theatre it cheaper just buy the DVD or Bluray Disc and I can watch it as min times as I want:D.
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That is just there for that price. Everywhere will be different there are 3 of them by me, I've only actually been to one of them as it is 30 miles from me, the other 2 are about 60 - 75. The one I go was $5 / person. I haven't been there in about 2 years so that might have went up a $1 or so a person. Don't recalling seeing where the others charge you per car load, but remember them both being like $5 or $6 / person. All three also play 2 movies for that cost, not just one. not sure how those ones in Ohio there are.
 
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