×
You will be redirected back to your article in seconds

Cinema owners build better mousetrap

Concessions, ads, event programming boost admissions, profits

Movie theater admissions were up in 2012, but the long-term trend remains down. Even so, says Moody’s Investors Service, exhibitors are getting more money from each patron. And, says the credit rating agency, it’s not just due to higher ticket prices.

In fact, ticket prices have flatlined over the past two years. Rather, exhibs have been staying ahead because of concession sales; onscreen advertising; and event programming, such as live concerts and Metropolitan Opera performances, made possible by digital delivery and projection. Major exhibs also have been adept at controlling costs and running their theater circuits more efficiently.

Further consolidation is likely as the industry completes its shift to digital. At some point, Moody’s says, studios will ask exhibs who don’t make the transition to pay part of the extra cost for prints. That should force smaller exhibs to shut down or sell out to larger chains.

Such acquisitions should boost revenue and cash flow for the five movie theater operators whose debt Moody’s rates: AMC Entertainment, Carmike Cinemas, Cinemark USA, NAI Entertainment Holdings and Regal Entertainment Group.

Since 2006, revenue per patron at those exhibs has risen 22.1% while cash flow per patron has grown 18.6%.

More Film

  • Krysanne Katsoolis Sets Up Viewpark With

    Krysanne Katsoolis Sets Up Viewpark With $200 Million Fund

    Veteran film industry executive Krysanne Katsoolis has launched Viewpark, which will finance, package and release high-end film and TV content. Viewpark has partnered with former Wall Street executive Keith Price’s Obsidian Asset Management to create a multi-million dollar fund for the production and marketing of its slate, Katsoolis told Variety. Obsidian, based in London and [...]

  • Elle FanningChopard Trophee dinner, 72nd Cannes

    Elle Fanning Faints at Cannes Dinner Party

    Elle Fanning, a member of this year’s Cannes jury, had a brief scare Monday night when she fainted at the Chopard Trophee dinner. Festival director Thierry Fremaux had just introduced actor Francois Civil onstage when Fanning, star of “The Beguiled” and “Maleficent,” collapsed and fell off her chair nearby. Fanning was sitting at a table [...]

  • 'Frankie' Review: Ira Sachs' American Version

    Cannes Film Review: 'Frankie'

    As a filmmaker, Ira Sachs, the director of “Love Is Strange,” “Little Men,” and (his masterpiece) “Keep the Lights On,” is like a flower that keeps sprouting new tendrils, growing ever more beautiful and complicated and delicate. His new movie, “Frankie,” may the closest that anyone has come to making an American version of an [...]

  • AMC theater

    AMC Stubs A-List Becomes No. 1 Movie Subscription Service

    AMC Theatres’ Stubs A-List program, which allows customers to see three movies a week for $19.95 a month, has hit 800,000 subscribers. That figure is well ahead of the original projection, announced last June, for 500,000 subscribers by the end of its first year. According to AMC, the program is now the No. 1 moviegoing [...]

  • Millie Bobby Brown on Her Feature

    Millie Bobby Brown Calls Her Film Debut in 'Godzilla' 'Kind of Unreal'

    Millie Bobby Brown is no stranger to stardom thanks to “Stranger Things,” but she still can’t believe she’s making her feature film debut in the monster reboot “Godzilla: King of the Monsters.” “It’s kind of unreal,” Brown told Variety at the premiere. “I’m like, ‘What is happening right now?’ It’s so bizarre and unreal, and [...]

  • Dakota Johnson Tracee Ellis Ross

    Dakota Johnson, Tracee Ellis Ross Co-Starring in Comedy 'Covers'

    Dakota Johnson and Tracee Ellis Ross will co-star in “Covers,” a comedy set in the music scene in Hollywood. “Late Night” director Nisha Ganatra is helming from a screenplay by Flora Greeson. Focus Features is partnering with Working Title Films on the movie. Working Title’s Tim Bevan and Eric Fellner will produce with Alexandra Loewy [...]

More From Our Brands

Access exclusive content