International News

Posted: Sun., Sep. 10, 2006, 5:00am PT

O'seas ticket costs skyrocket

Int'l markets seeing bigger cost increases than the U.S.

Whether in Barcelona, Beijing or Buenos Aires, ticket prices always seem to be rising.

Particularly in the past five years, foreign exhibitors have been bumping up prices more steeply, mainly to recoup their investments from replacing older single-screen theaters with state-of-the-art multiplexes.

Between 2001 and 2005, nearly every major international market easily outstripped the 19% rate of price hikes in the United States.

Australia, France, Germany, Italy, Spain and South Korea all saw increases of well over 40%, according to MPAA statistics. Despite ticket prices of more than $20 in Tokyo, Denmark, rather than Japan, is home of the highest average ticket -- the country nearly doubled its price to a planet-topping average of $12.42 over five years.

Denmark's neighbors have seen similar gains -- 79% in Norway to $11.03 and 75% in Sweden to $10.23.

"You really do get a quality theater experience in Scandinavia," claims BVI VP David Kornblum. British ticket prices have also exceeded the U.S. gains, rising 28% during those five years. Of major markets, only Japan, which already has far higher prices than the U.S., posted a smaller hike of 11% to $11.22 during the five years.

"The increases have been far greater than inflation in all markets including Japan where inflation has been almost non-existent," adds UIP topper Andrew Cripps. "As an industry we need to give the customer comfort and convenience. Increasingly, they will pay for a first-class entertainment experience."

In the red-hot Russian market, average prices jumped from $2.40 to $4.20 in five years.

Because the dollar has grown weaker against many currencies, the increases often aren't quite as large when measured in local currencies. And foreign exhibitors are well aware that they can't nudge prices up too quickly.

In South Korea, most theaters charge a base rate of 7,000 won ($7.50); if prices are raised, the entire industry does so at the same time.

"Ticket prices in overseas markets have stayed relatively inexpensive," notes Fox Intl. VP Joe Ortiz. "You're treading a thin line when you move them up noticeably because you run the risk of people deciding to wait for the video instead."

But many foreign exhibs are more willing than their Stateside counterparts to employ varied pricing strategies -- keeping a damper on average prices. Well-established discount days include Orange Wednesday in the U.K, Kinotag (Cinema Day) on Tuesday and/or Wednesday in Germany and price breaks on Tuesdays in Australia and Wednesdays in Mexico.

And in Japan, discounting has been key in holding down the average price. Among the more interesting -- and successful -- discount promotions is the "Let's Go to the Theater" campaign, which offers couples who are both over 50 "pair" tickets for ¥2,000 ($17.24) -- nearly half the standard price for two ducats; groups of three high school students can buy tickets for $8.60 each, compared with the standard $13 price for their age group.

Additionally, Japanese women who come to the theater on Wednesday pay $8.62 -- the same as seniors and children.

In Italy, exhibitors ANEC and ANEM experimented with a Cin Cin Cinema promotion of reduced cost tix on weekdays last spring; participating theaters registered a 35% increase in admissions and a 3% hike in box office.

(Ed Meza in Germany, Darcy Paquet in South Korea, Mark Schilling in Japan and Sheri Jennings in Italy contributed to this report.)

Contact Dave McNary at dave.mcnary@variety.com

HERE ARE OTHER ARTICLES RECOMMENDED FOR YOU…
    Newstogram
    SharePrint VarietyVariety RSS feedsBookmark

    Get Variety:

    Variety AppsVariety DigitalNewsletters

    Variety Luxury Real Estate