Thursday, March 25, 2010
How to milk your dragon
"Higher Prices Make Box-Office Debut: Tickets Get Costlier as Movie Chains Seek to Capitalize on Consumers' Willingness to Pay More for 3-D" is the headline of this morning's excellent Wall Street Journal story about the costly craze. The story is behind a paywall (oh, the irony!) but the bottom line is that in the absence of any consumer backlash the sky's the limit on those irritating surcharges for 3D and those damn glasses. Think $2, $3 or even $4 is a bit rich? "The exhibitors are trying to push the needle on ticket prices and see where it ends up," says Dan Fellman, Warner Bros.' president of domestic distribution. "So far charging a $3 or $4 premium has had no effect on consumers whatsoever, so I'm in favor of this experiment to raise prices even more. There may be additional revenue to earn here." And to hell with goodwill, as prices on regular old 2D movies also go up by an average of 4% beginning this weekend, as the latest CGI cartoon prepares to slay families with the 3D price gouge.