Franchise News

Movie Theaters to Possibly Bring Down Ticket Prices

Mar 29, 2014 01:25 PM EDT | By John Nassivera

The National Association of Theater Owners (NATO) announced they will test discounted ticket prices in order to increase attendance at movie theaters.

The Motion Picture Association of America (MPAA) released a report Tuesday that said domestic movie box-offices sales grew from $10.8 billion in 2012 to $10.9 billion in 2013. However, the increase was not because attendance, but because of higher ticket prices, according to The Wall Street Journal.

The number of tickets sold decreased as prices increased. NATO President and CEO John Fithian said a model is being created for discounted ticket prices one day per week, AOL reported.

"This is something that has worked for years in Latin America and Canada," Fithian said. "Our capacity is so underused on some days, such as Tuesday, so why not bring more people into the cinema? We are looking aggressively at it."

Fithian did not say how low the prices would be or how long the discount test will last, according to The Wrap. A NATO spokesman said the different movie theater companies would determine how the prices would be set.

A writer for Mashable said theater owners have been determined to not provide discounts to customers, AOL reported. The writer added, "That's largely because studios are promised a hard cut of each ticket; any discount would slice directly into the theater's take."

Movie theaters have done experiments in the past to find ways to bring in crowds on weeknights. Theaters have offered alternative programming, including filmed opera and rock concerts, in order to appeal to specific markets, The Wrap reported.

NATO and MPAA said the economic demographics of people who go to the movies hasn't changed over the past ten years, but stated that families may believe that it's too expensive to take their kids to the movies on the weekends.

"Families in lower income brackets would love to go on a Tuesday," Fithian said.

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