Admissions & Ticket
Prices:
Two Popular Myths
You have all read the
newspaper articles describing year-to-year declines in
movie ticket sales
and predicting the demise of the motion picture theatre.
No doubt you have also heard the patron complaints and
read the editorials about skyrocketing movie ticket prices.
Now it’s time to arm yourself with the facts and
combat these popular myths.
The truth is that movie admissions are very
strong by historical standards, and movies remain the most
affordable form of
entertainment outside the home.
According to official MPAA
and NATO tallies, 2004 produced another strong year of
admissions at cinemas. 1.536 billion
movie tickets were sold in the United States in 2004. Though
that number represents a 2.4 percent decrease from 2003,
last year marked the third year in a row that admissions
have exceeded 1.5 billion – a number not previously
reached since 1959.
The overall admissions trend since 1970
is very positive. Here are some U.S. admissions numbers
over the past 35
years (in millions):
1970 920.6
1980 1,021.5
1990 1,188.6
2000 1,420.8
2001 1,487.3
2002 1,639.3
2003 1,574.0
2004 1,536.1
Even though 2004 and 2003 saw slight decreases
from previous years, the overall trend is strong. Theatre
admissions increased 66.86 percent from 1970 to 2004. During
the same time frame, the U.S. population increased 43.38
percent (July 1970 U.S. population: 204.8 million; July
2004 U.S. population: 293.6 million.) In other words, for
the past 35 years, movie ticket sales grew much faster
than the population. The average number of trips to the
cinema in 1970 was 4.5 per person. In 2004, the average
American went to the movies 5.2 times. Americans are going
to the movies more, not less.
Next is the issue of ticket prices. Again,
reality defeats myth. Each quarter, NATO undertakes the
most comprehensive
survey in existence of U.S. movie theatre ticket prices.
Our accountants produce an average ticket price for the
country that reflects all prices (including matinees, senior
and student discounts, etc.) We keep the definition of
what is included in that average ticket price constant
from year to year. Thus, even though the average looks
smaller than what a patron would pay on a Friday night
at an urban multiplex, the average is accurate within a
very small margin of error – because more than half
of the movie complexes in the country complete the survey
every quarter.
Based on our survey, the average ticket
price in the United States for 2004 was $6.21, up 3.0
percent from 2003. During
the same time frame, the Consumer Price Index rose
3.3 percent, according to the Bureau of Labor Statistics.
In other words, movie ticket prices last year increased
at
a slower rate than inflation.
As the chart below indicates, the average
ticket price for movies has increased a total of 48.6 percent
over
the past 10 years.
Category
|
|
Average
Ticket
Price
|
10-Year
Price
Increase
|
Movies
|
|
$6.21
|
48.6%
|
MLB
|
|
$19.82
|
86.9%
|
NFL
|
|
$54.75
|
77.6%
|
NBA
|
|
$45.28
|
50.8%
|
Broadway
|
|
$66.40
|
51.3%
|
Concerts
|
|
$52.39
|
106.3%*
|
*1995-2004
|
When we consider the price increases in other
entertainment/sporting categories over the past
10 years, it is clear
that movies remain the most affordable out-of-home entertainment
experience, with the slowest growth in prices.
When your patrons complain about ticket prices, or when
your local newspaper reporter assails you with
declining admissions numbers, politely fight back, set the
record
straight, and defend this glorious industry of
ours.
