Corn Prices Wreaking Havoc at the Multiplex?
Filed under: Exhibition
You've heard it said, I suppose, that movie theaters make most of their profits at the concession stand rather than at the box-office, where distributors chip away at ticket sale revenues. And I'm sure you've had the thought that at $5 (or more) a bag, how can that popcorn not be pure profit, or close to it? This weekend, a bunch of stories have popped up detailing a development I should have anticipated, but didn't: the rising price of corn -- old news, on its own -- has begun to affect movie theater prices, both concession and ticket. AMC, which raised ticket prices in some locations last week, won't cop to corn being the primary cause of the changes, but some smaller chains have been more candid. Prices haven't gone up drastically, but with other recent hikes and the general exhibition-is-dying meme going around, this might not have been the best PR move.There are a number of discussions to be had about this, from whether the skyrocketing prices of corn and oil simultaneously spell the coming apocalypse to whether -- notwithstanding the typical assertion that "movie tickets would cost $20" if it weren't for concession sales -- theaters are being unduly greedy, to their own detriment, by not absorbing this market fluctuation. You hear a lot of talk about what level gas prices would have to reach before motorists start to say "too high" and drive less (or in smaller cars) in measurable numbers; I know, anecdotally, that some folks have reached that point with respect to movie theater prices (their decision helped, no doubt, by the barrage of annoying ads and insufferable audiences they have to deal with every trip). And remember: you gotta to drive to the movies, too.
I had to restrain myself from titling this post "Discuss: Is the World Coming to an End?" Seriously though: have you changed your moviegoing habits in respond to recent price jumps -- gas, ticket, popcorn, what have you?
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Reader Comments (Page 1 of 1)
5-26-2008 @ 9:14AM
BondsBabe said...
Luckily I can ride my bicycle to the movie theatre, so I don't have to worry about gas costs. But it's a different story once I'm inside the building. My sister and I go to matinées because they were usually on the cheap side, now they're two dollars over what I'm used to paying. But the concession price hasn't changed.
My sister and I really have to think about how much we really want to see a movie now and days. It used be "I'm bored hey lets go catch a movie." and it didn't matter if we really really wanted to see it or it was just a time killer that would do. But now it's like we really really have to want to see the movie, set money aside ahead of the opening weekend, and go.
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5-26-2008 @ 9:20AM
Greg Holkan said...
Are you sure about this? I mean, the trouble I see with this report is that there are hundreds of varieties of corn for different uses. The corn used for ethanol is undoubtedly a different variety than the corn used in popcorn. I could see a kind of economic pressure upon farmers to plant corn for ethanol instead of popcorn, which would begin to place pressure upon the market for popcorn, maybe. There are lots of factors that could figure into raising the cost of popcorn, unfortunately I am not really privy to that information.
This sounds like FUD to me, or maybe a stunt of some sort to raise the cost of product.
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5-26-2008 @ 11:30AM
Mark Larson said...
The problem is that growers are switching to the higher profit ethanol corn. This is creating shortages in other corn varieties like sweet corn and popcorn, which in turn is making the prices increase.
5-26-2008 @ 11:21AM
Christopher Campbell said...
It's not FUD, but it isn't completely fact, either. There are a number of factors regarding the corn prices, many of which are too complicated economically, biologically, and otherwise to go into here. Plus, I only attempt to understand most of it, as a moviegoer and exhibition fan more than an expert.
One good primer, though, is to see the recent documentary King of Corn. It touches lightly on the reasons corn for eating is going up as a result of the use of corn for fuel.
There's also an added issue (the popcorn prices going up stories have been floating around the US and moreso Canada for the past year) of this year's crop being insufficient.
Ultimately, though, the fact that theaters are raising concession and/or ticket prices right now is commonplace. Theaters do this almost every year or every other year at either the beginning of summer or the beginning of the winter holiday movie season (at the theaters I worked at it was typically concessions raised in May, tickets raised in November). Usually it comes exactly at a time when a George Lucas or Harry Potter movie is released. Partially because the studios amp up their fee for the film rental. Partially because they can. The corn price rise is just a good excuse for theater owners to use right now to offset complaints.
5-26-2008 @ 9:24AM
jtocco said...
the ticket prices around me are soaring. since they have installed those automatic ticket dispensers, i've started buying my girlfriend and i senior citizen tickets to save a few bucks for popcorn and a drink. sure it sounds ill-mannered, but no movie ticket needs to be $10.75. and since when did they start charging for refills on the large popcorn?!
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5-26-2008 @ 9:33AM
Andy said...
Sounds like you guys in the US have it better than us. For a bag of popcorn here you'd be looking at £3.50 - £4.00 which equates to roughly $8.00!
At my local cinema, I believe it's about £6.50 for a regular box of popcorn and regular soda - about $12 - 13, and it's not like the ticket prices are cheap either...
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5-26-2008 @ 12:57PM
Christopher said...
Well I always go to the movies Fri, Sat & Sun before 12 Noon at the 2 AMC theaters near me, since any showing before 12 Noon is only $5.00 (New Releases to!)........even on holidays! So I usually catch a $5.00 showing, then if therr is something else I want to see I go grab lunch and come back!
As far as snacks go I usually get the Kid's pack which is around $6.00 which inclds small popcorn and drink which is enough for me!
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5-26-2008 @ 9:01PM
Ray said...
Yeah, this is the only way I go to see movies anymore, and has been for awhile. Standard prices are now up to $13 per ticket at the AMC theaters near me, so the matinee prices are a godsend to me. Unfortunately, Regal doesn't have the same deal, so I'll have to wait to see some movies that I really want to, like Redbelt. Now if only I could get up before noon on the weekend more often.
5-26-2008 @ 2:28PM
pete thomson said...
I loath popcorn and frankly why have such a noisey snack in a public space where the enjoyment of the activity requires quiet! Cineworld cinemas offer a monthly subscription card for £11.99 a month for which I can see as many films as i like. As I will regularly go to the cinema 3 times a week this is great value. I have no interest in the over priced heavily marketed brands of fatty sugary foods an will buy flapjacks or coffee to take in or on occasion a sandwich an fruit. Over consumption and greed seems to be the issue here. I dont have a car as am blessed to live in a country with adequate public transport where people are not afraid to walk everywhere. The main thing here though is remember if you have a choice exercise it!!! Isnt that the American way!!???
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5-27-2008 @ 10:48AM
kevjohn said...
My local AMC charges $4.75 for pre-noon shows on weekdays, and $5.50 on weekends. Then it hops up a few bucks after that. Ticket prices haven't changed much in the 8 years I've been here. Concession prices have steadily increased though, and now there's a convenient excuse for them to go up more. I'm still waiting to have it explained to me why 2 hot dogs would ever cost $9.
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5-28-2008 @ 5:19AM
TRCIII said...
My wife and I don't care how much the movies cost, nor how high gas prices reach. We plan our entire summer around each week's releases and I still drive my gas-guzzling, high-performance V-8 (93 Octane only) to the theatre.
Once there, though, we're not totally insane; we only go to matinee performances and NEVER buy food at the concession stand, preferring to sneak food and drink in inside our bags and pockets. If we're absolutely forced to go to evening performances, I still have my student ID from when I was working on my Master's several years ago, so I still pay matinee prices.
Seriously, how could we afford gas if we had to pay full admission or those outrageous popcorn and candy prices, too?
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5-28-2008 @ 8:52AM
Nick said...
The cost of corn has gone up exactly as some earlier posters have claimed, due to the fact that farmers are growing the higher profit corn for ethanol. The cost of different varieties of popcorn have increased 25-35% from a year ago. While everyone likes to claim that the prices are so much higher today, while reminiscing about the good old days when candy bars cost a nickel, the theaters have for the most part eaten a lot of these increases. I doubt that the $5 popcorn you bought for PotC a year ago cost $6.25-$6.75 for the last Indy. It may have increased but not by that much. Everyone's margins are getting smaller but the market itself will determine the price. Another factor that the theaters have been forced to deal with have been the dramatic increases of both coconut and sunflower oil. All of this has been compounded by the regular fuel costs we have all experienced. Popcorn is pretty dense and shipping a 42,000 lb truck a quarter of the way across the country from the processing plant to a distribution center can cost a pretty penny.
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5-28-2008 @ 12:38PM
Monika said...
And this is why I love the new theater near me. It has a crappy concession stand with popcorn, but the ability to hit anywhere in the food court and bring food in with you. Gelato is muuuch better than crappy, stale popcorn.
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5-29-2008 @ 12:59PM
Sunkicked said...
I've quit going to my local theater and will make the 45 minute trip to go to a rather larger town for a better cinematic experience. To put things in better perspective let me clue you in on why this is the case: 1.) My local theater doesn't show movies past 7:30 unless it's Friday or Saturday. I live in the Midwest, I've got stuff to do in the sunlight until at least 8:30, give me a break! 2.) Staff here are very unfriendly and have little knowledge or passion for films. I used to manage a Suncoast store (R.I.P.) in North Carolina and the greatest thing about that job was the customer base that was just as excited about movies as I was. 3.) I'm embarrassed to say this but there is a brown stain on screen #4 here in my local theater. Sure, screens have stains all the time, what's the big deal right? Here's the big deal. I made that stain by throwing a cup of Coca-Cola Classic at the screen. 10 YEARS AGO!!! I was so disgusted with the fact that I had paid to watch that piece of garbage 'Armageddon' that, on the way out, I chucked my half full cup at the screen in protest (I was 18, cut me some slack). I left home a few months later and when I returned just a few years ago I went to the movies and saw it. I was half proud of myself, half disgusted with myself and completely disappointed in my theater.
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