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"the unusual economics of the film industry"

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Magnus posted on Mon, Oct 12 2009 4:43 AM

I found this link on IMDB today: http://www.marginalrevolution.com/marginalrevolution/2009/10/the-.html .

To sum up: a blogger has made the observation that all movies cost the same at the cinema.

Why is that?

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Probably because people expect it... or they think that despite low ticket prices expensive movies will have more viewers.

The film industry is also pretty heavily regulated from within. They have a long history of unions and bla. That might have something to do with it, but I doubt it.

"It has always been the prerogative of children and half-wits to point out that the emperor has no clothes. But the half-wit remains a half-wit and the emperor remains an emperor." ~Dream

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bbnet replied on Mon, Oct 12 2009 9:42 AM

Not all movies cost the same, even at the same cinema.

Many cinemas charge a premium for movies in 3-D and offer a discount for matinées and midnight movies.

The cinemas pay different fees for different movies but tend to standardize their ticket fees.

The more expensive movies for the cinema owners tend to draw greater numbers of viewers and visa versa.

You've had all night and day to
Consider and pray
You've brought fire on my head and
Now you must pay.

Babylon makes the rules where my people suffer

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Movies which do not do as well at the cinema generally are marginalized off the screen, and they either go to DVD or they go to cinemas where they charge less (there a few in San Diego that charge around $1 per movie, and they are either movies nobody saw at more expensive theaters or old movies replayed).

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