QUOTE(WalrusOct9 @ Sep 19 2007, 07:35 PM)

Not sure why theaters don't have some sort of scaled pricing...the general public are like lemmings; they'll pay whatever theaters want to see Spiderman 12 or Transformers, but a film like Across The Universe that (if it turned out to be really good) could become a sleeper hit just based on word of mouth, but would need people to actually see it first. The whole one-size-fits-all pricing thing just always struck me as a little odd, since there's so many crap movies that come out. (I mean, really, Mr. Woodcock? Are you serious, Hollywood?) It's the same as iTunes...you can't run your business under the assumption that Emotional Rescue is worth the same as Sticky Fingers and Let It Bleed. But I digress.
ahh here we go once again, both beating the proverbial dead horse. just lower the price and everything will be just fine... steve, it just isn't that simple.
fwiw, the studios control the pricing, not the theatres. theatrical movies are done on a sliding "revenue sharing" basis. in most cases, especially w/large, major releases, theatres (or theatre chains) bid on releases months in advance, those that offer the lowest percentage "take" and can offer the distribution desired/needed, get the movie (that's why in larger cities you will usually see one major chain exhibiting a major release). on big titles, during the first few weeks of release, the studio may get upwards of 80-85% of the box office (the theatres largely survive on the traffic count to generate concession/arvade/etc sales), the longer a film runs the larger percentage of the box office the theatre gets, usually after 4-6 weeks their take maxes out at about 40-50% for the remainder of the run...
but this time, i do agree with you, sort of...i think the movie industry would benefit from a sliding scale type of pricing. it makes no sense to me that it costs the same to see a movie that cost $200m to film as it does to see one that cost $2m (it's costs less to build a kia than a mercedes, and they are priced accordingly). and it seems to me that the "risk/reward" of producing smaller movies would be much greater (which is why studios like "lionsgate" are prospering nowadays). but, no studio CEO has called me lately and asked my opinion either.

as i told a studio rep many years ago, when we played $75+ for a new release VHS tape for rental..."i don't mind paying $75 for a movie starring sylvester stallone, but you are crazy as hell if you think i'm gonna pay 75 bucks for one starring frank stallone."
the studio philosophy is to "cost average" and lump everything into the same pool, big releases rarely make big profits. the standard rule of thumb is that approximately 50% of the production costs are budgeted for marketing, so a $200m release gets approx $100m in marketing. say the theatre's "cut" averages 25% over a 4-6 wk run (which is about the max these days), that movie has to do about $400 @ the box office just to break even (much of their "upside" on these type films come from post theatrical sources; dvd, pay per view, pay cable, licensing and other tv sales, along with the very profitable foreign box office, which has a very lucrative rev share model for them). say it grosses $450m, a $37m profit (after the theatres cut), that's only a little over 10% return on a $300m investment, not that good. but, a $5m movie (+ the marketing expenses noted above) that does $25m at the box office, nets about $11.25m (after the theatres cut) or a 150% ROI on $7.5m, that's where i'd put my money anyday. assuming i had $7.5m & and any studio execs cared what i thought...
there ya go, those are the facts of life, but flame/rant away anyway...