And They Still Charge THAT For Popcorn?

By Timothy R Butler | Posted at 7:15 PM

A few months ago I ended up falling into place as the person in charge of putting together a publicity taskforce for my church. I've already been doing stuff like brochures and the web site, but we've wanted to try some different stuff. An idea came up that we could advertise on those slideshows that theatres show before the movie starts.

So, I give the theatre advertising company a call thinking maybe we could buy some time on a few nice “G” or “PG” rated films and spend, oh, maybe $500-$1,000. Yeah right.

Turns out that the company charges the better part of $13 dollars per CPM (that's advertising lingo for thousand ad impressions or showings), you can't pick what movies your ads show on — they must appear on all the movies — and you must show for at least seven weeks. Needless to say, even with an non-profit discount that comes out to the better part of $3,000. This amazes me, because these are highly untargeted slide adverts.

Anyway, I bring this up because it occurs to me just how much theatres make that you don't even think about. Not only do they get the better part of fifteen or twenty bucks per person on refreshments and tickets, then you watch numerous slideshow ads before… you see the really cool big screen motion ads. Then you finally get to the movie, but before you leave you see all kinds of ads plastered on the wall advertising various services as well.

With that much revenue, you'd think they could at least keep the floors from being sticky.

Tags: Life

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6 comments posted so far.

RE: And They Still Charge THAT For Popcorn?

Realize, the entire price of the admission ticket goes directly to Hollywood. The admission does not pay for the theater or its employees. It pays purely for the movie, itself. The entire cost of the building of the theater, the electricity to run everything, the water for the bathrooms, and the personnel to manage and run the facilities comes from selling concessions and advertisements.

Posted by kevin - Jul 18, 2003 | 9:24 PM- Location:

RE: And They Still Charge THAT For Popcorn?

Not ALL of the ticket price goes to Hollywood, although at first the vast majority of it does. As the movie becomes older I think that the theatre gradually gets a larger portion of the ticket price

Posted by David - Jul 19, 2003 | 1:44 AM- Location: Western Canada

RE: And They Still Charge THAT For Popcorn?

At the theater where I worked, they actually kept the cash bags from the box office entirely separate from the cash from the concessions. They went in separate safes and were picked up by separate armored vehicles. 100% of the box went to the film. 100% of the concessions went to the facilities and personnel.

It may be different for 2nd run and small-town theaters. I’m not sure how they operate. My experience is only with the big new multiplex.

Posted by kevin - Jul 19, 2003 | 2:07 AM- Location:

RE: And They Still Charge THAT For Popcorn?

That’s certainly interesting, Kevin. That would explain why concessions are often times more expensive than the movie itself…

Posted by Timothy R. Butler - Jul 19, 2003 | 1:15 PM- Location: MO

RE: And They Still Charge THAT For Popcorn?

It certainly changed my perspective of things, Tim. I don’t feel like the theater is just out to hose me anymore. I’ve helped build a big theater. There is a lot that goes into those things to make the experience enjoyable. I now usually buy something at the concessions, even if only a bottle of water, and don’t sneak everything in like I used to. We don’t see as many movies as we used to. When we do, we make a big deal of it.

Posted by kevin - Jul 19, 2003 | 1:26 PM- Location:

RE: And They Still Charge THAT For Popcorn?

Shoot the messanger, but save the horse! My cynical mind says the real problem here is Hollywood. They are the messanger. Theaters are just the horse.

As much as possible, I avoid any product of Hollywood. I begin with the assumption their product is evil, and make them prove otherwise. It’s been a long time since they’ve succeeded. They have a lot to do with coarsening American culture.

I won’t dispute that customers are only getting what they clamor for, but lots of folks want things they shouldn’t have. It’s not censorship if you refuse to deal in near-pornography and gratuitous violence. It’s just good sense.

Posted by Ed Hurst - Jul 19, 2003 | 3:16 PM- Location: Rural Southeast Texas

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