Tonight on NBR – July 1, 2013


Why is the price of theater popcorn so expensive?

We’ll tell you the answer tonight on NBR.

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  1. Lew says:

    Tonight’s segment on the “high price” of movie theater popcorn completely missed the point(s). To wit:
    Upwards of 95% of ticket admissions go the film’s “distributor” on many blockbusters
    Distributors have increasingly picked the pockets of theater owners, chains or one-
    offs, for “shares” of concession sales (popcorn, candies)– hence $6 for Junior Mints!

    Clearly (and you ought to visit with the theater owners organization for confirmation) there is precious little left from all income streams for paying “the help”, the overhead,
    etc. Only where state and local laws DO NOT PERMIT the distribution of certain categories of sales to any other party (like alcohol sales in Texas, from the salestax-paying license-holder (the theater owner) to any entity other than the State of Texas) is there some profit headroom approaching levels in other similar event/leisure businesses. And we do see the rise in “popularity” of the bar-in-the-lobby format, don’t we?

    I’m not now nor have I been ever an owner of a movie palace. But with enough exposure to this business model I can assure you that your segment should have delved deeper to gain a clearer and more accurate perspective. There are less “pretty” reasons for the $8 popcorn tub!

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