The way how businesses like https://www.ponfish.com/top-best-countertop-microwaves-for-seniors/ is making money is different from how movies do it. Because in movies, especially Hollywood, the breakdown is 45% to 55% whereas the former goes to the movie theater and the latter is to the movie studio.
Meaning to say, if a ticket costs like 10 dollars, then the theater that showed it will get $4.50 while the studio gets $5.50. For the theater, the $4.50 goes to the maintenance, drinks, foods, employees and several other costs. As for the studio, it can be divided into the groups below.
Marketing and Advertising, $2.11
Most of the time, anticipated blockbuster movies have the top marketing budget that goes north of 100 million dollars. Newspaper, radio ads and TV commercials, billboards as well as internet marketing are all used in order to drive ticket sales. When the market research and also, preview trailers are factored in, the studio look thoroughly to its budget.
This figure will include virtually every cost aside from the actor’s talent fee. Oftentimes, this will cover the following:
- Employee salary
Movie Distribution, $1
As a matter of fact, 10 percent of every ticket will go to the distribution of movie reels. It seems to be a high figure just to pay thousands per movie reel but at times, the movies are sought after that they need to be shipped with security.
This percentage is going to vary from studios and $.68 already represents a huge cast film. In the event that the movie doesn’t spend much on its actors, then extra percentages will be added to other 3 categories.
The theater chain will be setting the prices for movie tickets and not the studio that has created the movie. If the cost increase for a theater, then it’s two times difficult for them to boost revenue since they are losing 55 percent for each ticket.
So to compensate for it, movie theaters are increasing ticket prices more than what it has to be. So long as this cycle continues, expect a constant increase in the price of your movie tickets in the future.