Blog Entry

High price of popcorn at the movies.

Posted on: January 16, 2008 3:05 pm
Edited on: January 16, 2008 8:35 pm

 Ok, I have heard a lot of answers or suggestions, as to why the prices for popcorn and other snacks at the movies are outrageous. I read, what I think is the best answer, in an old economics textbook by David Friedman and here it goes, and yes this is my summation:  The theater's need to keep the ticket prices low enough to get the poorest of society in the seats along with the rest of the world to maximize profits, and since the affluent, who would have paid more for the tickets, but didnt have to, will have plenty of money left over for high priced popcorn, and we all know the rich wont try to smuggle in pop and snacks. So therefore the theaters get as much as they can from the poor among us and the most that they can from the rich.

 Feel free to add comments as to how this may say something about the price of a hot dog at the games. 

Category: General

Since: Nov 19, 2006
Posted on: January 19, 2008 3:38 pm

High price of popcorn at the movies.

BYW Tom, good luck with your fantasy teams. Last time I looked you were smacking me around pretty good.


Since: Nov 19, 2006
Posted on: January 19, 2008 3:36 pm

High price of popcorn at the movies.

Sporting events are different than movies in several ways. Almost 100% of the ticket revenue at a movie theater goes to the film company/distributor. The theater chain must make their overhead and profit off of the concessions.

Sporting events are different. The concession revenue is split between the arena / stadium, team, and concession operator who has often paid a huge advance for those rights. The concession operator also has paid for all of the equipment in the building to service the concessions including loading docks, coolers, beverage lines, warmers or cookers etc.

There is some of 'whatever the market will bear' in the pricing but on the other side, the Rockies have to come up with a way to pay Matt Holliday his $20+ million over the next 2 years.

My 2

Since: Aug 19, 2006
Posted on: January 17, 2008 12:09 pm

High price of popcorn at the movies.

Hi Don and Happy New Year 17 days later>

I feel the prices of concessions at ball games and movies are drastically raised because they have a captive audience that has no where to go to get something to snack on.  You must agree, the smell of popping corn laced with butter that will clogs the best of arteries smells real good and very tempting.

Hot dogs at a baseball game is a must, because they are very good and once again, the only place you can buy a snack during the 3 to 4 hour stay they have your attention.  As far as the beer is concerned, they can serve the flattest, cheapest and rock bottom selection of all beers if they serve in somewhat cold.  People will buy because it is the thing to do.

Try NASCAR and fried chicken.  They can cook it many hours in advance and you will still order it because that is what you are suppose to do.

Gone are they day's where you can get a coke, popcorn and candy along with your admission to an all day Sat at the movies for a mere 25 cents.  That is the 25 cents you got for mowing and raking the neighbors yard on a Friday afternoon in blistering heat without complaining.

Great blog and as always Go Tarheels !!! 

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