Economics of movie theaters

Page 3 of 6<123456>
November 26th, 2015 at 4:16:20 PM permalink
Nareed
Member since: Oct 24, 2012
Threads: 313
Posts: 10663
I do like going to the movies. The sense of anticipation imparted when the theater goes dark and the movie starts cannot be replicated elsewhere. The majesty imparted by the BIG screen is inimitable, even with a FBS at home.

But the many obstacles to attending a theater conspire against this. Traffic, even though there are several theaters within 2 miles of my place, crowds, traffic on the way back, etc. And after many disappointing movies (I'm looking at you, George Lucas), it's not worth the hassle for me any more. Just about any movie I want to watch eventually is on cable or Netflix.

I will go for the new Star Wars movie (it's not directed or written by Lucas), though I think it's a gamble. The two Trek movies by Abrahams weren't what I'd call good or even very interesting. But I'm willing to give it a chance.

If all else fails, I can wax sarcastic in many bitter reviews.
If Trump where half as smart as he thinks he is, he'd be twice as smart as he really is.
November 27th, 2015 at 12:22:38 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 687
Posts: 7913
Quote: Nareed
I do like going to the movies. The sense of anticipation imparted when the theater goes dark and the movie starts cannot be replicated elsewhere. The majesty imparted by the BIG screen is inimitable, even with a FBS at home.


The figure that strikes me is that almost 60% of the population of USA and Canada goes to more than one movie a year. So if a movie like Jurassic World can be such a big hit by attracting 23% of the population, then there always is the possibility that Star Wars may drag over 30% of the population to the movies.
November 27th, 2015 at 12:07:37 PM permalink
Dalex64
Member since: Mar 8, 2014
Threads: 2
Posts: 1726
We rarely go to the movies. For many years we didn't go at all. Then we started going again - we saw all of the LOTR and hobbit movies, the new Star Trek films, and the later Harry Potter movies. We saw Interstellar.

We are planning on seeing Star Wars.

It probably averages to about one a year, looking at the most recent years.
"Everyone is entitled to his own opinion, but not to his own facts." Daniel Patrick Moynihan
November 27th, 2015 at 8:27:54 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 687
Posts: 7913
Quote: Dalex64
We are planning on seeing Star Wars.


There are 360 million people in USA and Canada.

Here are total tickets sales from some big movies to compare. Of course, some people see a movie more than one time.

Jurassic World: June 12, 2015
Domestic Total Est. Tickets: 79.0 million

Avatar: December 18, 2009
Domestic Total Est. Tickets: 95.9 million (just in initial release)

Star Wars Episode I - The Phantom Menace: May 19, 1999
Domestic Total Est. Tickets: 84.8 million (just in initial release)

Star Wars:May 25, 1977
Domestic Total Est. Tickets: 142.7 million (just in initial release)
Production Budget: $11 million

Only 9 films in history have sold 100 million tickets in their initial release.
  1. Gone with the Wind 1939
  2. The Ten Commandments 1956
  3. The Sound of Music 1965
  4. Doctor Zhivago 1965
  5. The Exorcist 1973
  6. Jaws 1975
  7. Star Wars 1977
  8. E.T.: The Extra-Terrestrial 1982
  9. Titanic 1997
What do you think the odds are that this film will sell more than 100 million tickets in it's initial release? Keep in mind that "The Phantom Menace" which was almost unwatchable sold 85 million tickets.
November 27th, 2015 at 8:47:50 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 106
Posts: 10927
I walked out of ET halfway thru, it was
making ill. I tried to watch it again a
couple months ago and lasted about
20 min. What the heck is wrong with
me.

I got all the free passes I wanted because
I had the bar in the early 80's. The
manager of all the theaters in town
was a customer. I walked out on a lot
of movies. I sat thru the first Indiana
Jones twice, and Polterguist.
If you take a risk, you may lose. If you never take a risk, you will always lose.
May 5th, 2016 at 4:00:37 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 48
Posts: 4434
IMAX and Movie Theaters:

Rip out the seats, but in upscale bicycle exercsers, show Imax videos as Yuppies work out in a non Big-Box gym atmosphere but a more muted, private and personal-trainer and computer oriented setting. Brooklyn test market is going very well.



By the way, anyone ever see that Carlsberg Beer commercial. A man and woman are sold 'the last two seats' in a movie theater and then enter by the traditional side walkway and get their first view of the audience as they round the turn at the front of the seating area. The 'last two seats' are half way up the theater and in the middle of a row of seats but the entire theater is filled with 300 pound biker types with tattoos and chains and leather. Many customers bulk, but those who simply sit down suddenly have the lights go up and are handed two bottles of Carlsberg Beer.

I thought it was entertaining.
July 21st, 2016 at 11:55:04 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 687
Posts: 7913
Unofficial guide to 2015 movie. Three unacknowledged budgets. There were 13/47 films with production budgets over $100 million.

Massive flops were pretty low out of top 50 films

Tomorrowland
Terminator: Genisys
The Good Dinosaur (budget not acknowledge)

$4,233 production budget 47 films (average $90 million), domestic return 287%

2015 full year

N/A 22 Daddy's Home Par.
N/A 26 The Good Dinosaur BV
N/A 35 Alvin and the Chipmunks: The Road Chip Fox
$250 3 Avengers: Age of Ultron BV 184%
$245 1 Star Wars: The Force Awakens BV 382%
$245 10 Spectre Sony 82%
$190 5 Furious 7 Uni. 186%
$190 30 Tomorrowland BV 49%
$175 4 Inside Out BV 204%
$160 7 The Hunger Games: Mockingjay - Part 2 LGF 176%
$155 32 Terminator: Genisys Par. 58%
$150 2 Jurassic World Uni. 435%
$150 11 Mission: Impossible - Rogue Nation Par. 130%
$150 21 Mad Max: Fury Road WB 102%
$135 13 The Revenant Fox 136%
$135 15 Home (2015) Fox 131%
$130 14 Ant-Man BV 139%
$110 20 San Andreas WB 141%
$110 23 The Divergent Series: Insurgent LG/S 118%
$108 8 The Martian Fox 212%
$99 24 The Peanuts Movie Fox 131%
$95 9 Cinderella (2015) BV 212%
$88 39 Pixels Sony 89%
$81 25 Kingsman: The Secret Service Fox 158%
$80 16 Hotel Transylvania 2 Sony 212%
$74 6 Minions Uni. 454%
$74 18 The SpongeBob Movie: Sponge Out of Water Par. 220%
$68 37 Ted 2 Uni. 120%
$65 27 Spy Fox 171%
$61 36 Maze Runner: The Scorch Trials Fox 134%
$58 38 Goosebumps Sony 138%
$55 40 Paddington W/Dim. 139%
$52 49 Black Mass WB 120%
$48 33 Taken 3 Fox 186%
$40 17 Fifty Shades of Grey Uni. 415%
$40 31 Get Hard WB 226%
$40 42 Bridge of Spies BV 181%
$35 28 Trainwreck Uni. 315%
$35 29 Creed WB 314%
$35 41 The Intern WB 216%
$31 50 Vacation WB (NL) 190%
$30 34 Sisters Uni. 290%
$30 43 Paul Blart: Mall Cop 2 Sony 237%
$29 12 Pitch Perfect 2 Uni. 636%
$28 19 Straight Outta Compton Uni. 576%
$28 44 The Big Short Par. 251%
$23 48 The Wedding Ringer SGem 280%
$15 46 Magic Mike XXL WB 446%
$5 47 The Visit Uni. 1304%
$3 45 War Room TriS 2260%


Usually what happens in the film industry is that if there are not many disasters, the production budgets go up the next year.

So only 7 months into the year, there are already 13 films with budgets over $100 million, and there are 14 films with unacknowledged production budgets (many of which are clearly over $100m).

The number of flops seems to be much bigger this year.

The Legend of Tarzan
X-Men: Apocalypse
Alice Through the Looking Glass
Independence Day: Resurgence
Warcraft
The BFG
Gods of Egypt
Teenage Mutant Ninja Turtles: Out of the Shadows
The Huntsman: Winter's War
Ghostbusters (2016)

2016 seven months

N/A 1 Finding Dory BV
N/A 5 Zootopia BV
N/A 9 Kung Fu Panda 3 Fox
N/A 19 10 Cloverfield Lane Par.
N/A 20 The Divergent Series: Allegiant LG/S
N/A 21 Now You See Me 2 LG/S
N/A 26 My Big Fat Greek Wedding 2 Uni.
N/A 28 Neighbors 2: Sorority Rising Uni.
N/A 29 Barbershop: The Next Cut WB (NL)
N/A 38 The Nice Guys WB
N/A 40 Dirty Grandpa LGF
N/A 46 Zoolander 2 Par.
N/A 47 The Finest Hours BV
N/A 49 The Witch A24
$250 2 Captain America: Civil War BV 163%
$250 6 Batman v Superman: Dawn of Justice WB 132%
$180 11 The Legend of Tarzan WB 60%
$178 8 X-Men: Apocalypse Fox 87%
$175 4 The Jungle Book (2016) BV 206%
$170 17 Alice Through the Looking Glass BV 45%
$165 14 Independence Day: Resurgence Fox 61%
$160 34 Warcraft Uni. 29%
$144 25 Ghostbusters (2016) Sony 43%
$140 32 The BFG BV 35%
$140 44 Gods of Egypt LG/S 22%
$135 16 Teenage Mutant Ninja Turtles: Out of the Shadows Par. 60%
$115 33 The Huntsman: Winter's War Uni. 42%
$75 7 The Secret Life of Pets Uni. 301%
$73 12 The Angry Birds Movie Sony 146%
$60 23 London Has Fallen Focus 104%
$58 3 Deadpool Fox 626%
$50 10 Central Intelligence WB (NL) 240%
$50 30 13 Hours: The Secret Soldiers of Benghazi Par. 106%
$40 13 The Conjuring 2 WB (NL) 254%
$40 15 Ride Along 2 Uni. 227%
$38 35 How to Be Single WB 123%
$38 42 The 5th Wave Sony 92%
$35 50 Whiskey Tango Foxtrot Par. 66%
$33 41 Mike and Dave Need Wedding Dates Fox 106%
$29 22 The Boss Uni. 218%
$27 36 Money Monster TriS 152%
$25 43 Mother's Day ORF 130%
$22 45 Hail, Caesar! Uni. 137%
$20 27 Me Before You WB (NL) 277%
$20 37 Risen Sony 184%
$17 31 The Shallows Sony 310%
$13 24 Miracles from Heaven TriS 475%
$10 18 The Purge: Election Year Uni. 737%
$10 39 The Boy (2016) STX 358%
$10 48 The Forest Focus 266%
$2,995
36
$83.19 184%
July 22nd, 2016 at 10:26:00 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 687
Posts: 7913
A few more films over the next two weeks.

Ice Age: Collision Course - Production Budget: $105 million
Star Trek Beyond - Production Budget: $185 million
Jason Bourne - Production Budget: $120 million
Suicide Squad - Production Budget: N/A (but rumored to be over $250 million)

I think it is just logical that you can't make so many multi million dollar computer graphic extravaganzas in one year.

Gods of Egypt- Production Budget: $140 million
$31.15m Domestic
$35.60m China
$11.36m Russia - CIS
$6.53m South Korea
$60.88m all other countries
July 23rd, 2016 at 12:13:12 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 48
Posts: 4434
Quote: Pacomartin
I think it is just logical that you can't make so many multi million dollar computer graphic extravaganzas in one year.
Do you mean there is an insufficient market to absorb so many or that it is computationally impossible to churn them out and have them be good.

I suggest that the talent is always there to write and to raster. Consider perhaps that first viral email that I mentioned in another thread. It was the "First Kiss" video of friends of a Los Angeles director and it went viral in its capacity as a simply made film about a series of first kisses. It was in fact a fashion show for an LA upscale merchandiser bringing out a line of simple chiaroscuro fashions.

People who can make a fashion show go viral are what Bennett Cerf was to publishing: a man who could put a dictionary on the best seller list.

I have a very low opinion of all this vampire invaders from Mars versus Earthling Zombies with Light Sabers but alas I have no doubt that the market is inexhaustible.




NOTE: Upthread somewhere I posted a note about a Brooklyn Movie Theater turned into an Upscale Exercise Bike with Imax parlor. Has anyone seen any further financial data on that project?
July 23rd, 2016 at 1:27:10 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 687
Posts: 7913
Quote: Fleastiff
Do you mean there is an insufficient market to absorb so many or that it is computationally impossible to churn them out and have them be good.


I didn't mean "good", I meant profitable.

In 1995 people bought 1.2626 billion movie tickets in Northern America @$4.35 apiece when Toy Story (the first computer generated animated film came out)
In 2014 people bought 1.2682 billion movie tickets in Northern America @$8.17 apiece when the LEGO movie was the biggest animated movie

In 1995 Batman Forever had a production budget of $100 million, and Waterworld had a production budget of $175 million.
There is not a lot of growth in the industry.

DVDs were introduced in 1996, and tickets sold around the world have increased, but the movie companies don't take as much from foreign sales since they must share with distribution companies.

Every film is hoping to be popular in China or Russia or Japan, but you can't split the pie up so many ways.


A lot of films with half or a third of the budget end up making more money.
Page 3 of 6<123456>