Why Is Movie Theatre Popcorn So Expensive? The Real Reason Will Surprise You
Wondering why movie theatre popcorn is so expensive? Discover the real reason behind high popcorn prices and how concession sales keep cinemas running.
Why Is a Bucket of Popcorn So Expensive at the Movies?
You may have noticed that the cost of a bucket of popcorn at the movie theater can sometimes be equal to or even exceed the cost of your ticket. This may be surprising to you, but it makes sense when you learn about the different ways in which theaters generate revenue.
The Profit Sources Of Movie Theaters
The majority of profit generated by a movie theater comes from its concession stand sales (popcorn, candy, soda, etc.) since ticket revenue only accounts for a small portion of total theater revenue due to the split of ticket revenue between the studio and the theater.
Distribution of Ticket Income
The majority of the gross ticket income from a newly released film is received by the Movie Studio (Production Company) for the first 14 days (roughly 70% to 80% of the gross ticket income). Therefore, to cover their operational costs, theaters must rely on the sale of edible items to create enough income for their continued operation.
Keeping Theater Business Viable
Studio leaders understand that making food (like popcorn) is very cheap. However, studios need to charge higher than normal prices for their popcorn in order to earn more than just enough to pay for the operational costs (staff, equipment, utilities, rent) and provide money for capital improvements (theater technology).
Comfort and Convenience
Movie theatres market their foods based on “comfort foods.” The aroma and environment evoke the cravings of people who are excited about seeing a movie, and the combination of those emotions and the movie experience allows them to charge more for their concession items than traditional pairs like movie-theatre popcorn and candy.
The Fact
In short, theatres don’t sell popcorn at such an exorbitant price in an effort to generate profits; instead, it’s the concession sales that keep theatres running, as many theatres wouldn’t be able to remain in business without them.
Disclaimer
This content is based on general industry research and publicly available information. Prices and revenue models may vary across theatres and regions.
