Danielle Sallman
Econ
Mr. Reuter
April 6th, 2016
Do movie theaters help the economy?
The amount of money people spend on movie ticket yearly is rising in numbers as better movies start to come out. Most people go to movies with their friends at least twice a month which initially results in quite a bit of money getting spent at the movie theatre. With this money being spent there is a demand for more movies. According to The Numbers web page it said that the top movie in 2015 is Star Wars with over 2 trillion dollars in sales in the worldwide box office. The amount of tickets sold for a general movie is alway rather high because everyone wants to see the new popular movie that everyone is talking about. But what amount of the money actually goes back to the theatre? According to themovieblog web page, it says that the theatre only get about 25% of the money of profits because the rest goes back to the companies who make the movies. How does this affect the economy? Well the amount of money that goes back to the movie production companies goes back to producing more money to make newer movies that you will eventually go to see. It’s a circle of money spending in reality. 
When the recession hit, people had other things on their mind than spending ten dollars to see a movie and then buying 20 dollars worth of snacks or more depending on if it was just you or if you were with a family member. Movie theater trips can be expensive and not everyone can go every single week but during the recession the amount of people who would go to movies at least once a week was deflating quickly.
Not many people would guess this but in 2010 the number of people who go to see movies dropped by 1 million, which would definitely affect the profits earned. But in 2016 with numbers steadily rising it is safe to assume that movie theaters are helping our economy. 
Work Cited
Acuna, Kirsten. "Movie Ticket Sales Are Down 100 Million From A Decade Ago [Chart]." Business Insider. Business Insider, Inc, 04 Sept. 2012. Web. 06 Apr. 2016.
CNN. Cable News Network, n.d. Web. 06 Apr. 2016.
"Economics Of The Movie Theater ? Where The Money Goes And Why It Costs Us So Much." The Movie Blog. N.p., n.d. Web. 06 Apr. 2016.
"Movie Box Office Records." The Numbers. N.p., n.d. Web. 06 Apr. 2016.
Susman, Gary. "Movies And The Economy: Courting Adults In A Time Of Declining Film Attendance." The Huffington Post. TheHuffingtonPost.com, n.d. Web. 06 Apr. 2016.
It's crazy to see how everything factors into the well being of our economy and how entertainment get's budgeted by everyday people when the economy takes a hit. I wonder with ticket prices continuously raising if people will still be willing to pay these high prices, when they could wait for it to come out on DVD or watch it free online as a cheaper alternative. Overall interesting topic and great photos.
ReplyDeleteMovie theaters truly do help the economy. Considering that they employ loads of people to work as janitorial staff, ushers, the people who play the movies. Also a lot of people have to make the movies themselves. One cannot watch a movie at a movie theater if no one is making them. The fact of the matter is that a lot of movies are made in the U.S specifically Hollywood. That’s where production starts at least. Considering that America has a wide array of terrain they can film almost anywhere in the U.S. So these places will get a short boom as they’re a lot of people needed to make a major movie, so hotels and food providers will get an influx of cash as these people need a place to stay and eat. These movies even employ extras, who don’t make as much money as the stars but make money nonetheless, and who couldn’t use a few extra bucks and the ability to go see yourself in a movie theater where you might buy popcorn or a soda. So as one can see it’s a cycle and one that is truly good for the U.S economy.
ReplyDeleteIt completely makes sense that the “circle of money” is made when movies are made, theaters provide the entertainment, some money goes back to the production companies, then more movies are made. It was mentioned how the movie production companies are impacted economically, but it would be interesting to know how the theaters’ profits affect the economy as well.
ReplyDeleteInteresting topic to write about. Not many people think about the money they spend when they go to the movies. Some people just want to see the movies because everyone is talking about them and it seems like a good thing to do. When people are having fun they typically don't think about how much money they spend. That is crazy that only 25% of the money goes to the movie theater itself, but it does make sense that the money should go to the people who made the movie. Then again the companies who made the movie wouldn't be getting any money if it weren't for the theaters showing their movies. Overall great topic to write about and it made me really think about how much money I spend when I go to the movies.
ReplyDeleteI find this interesting that the profits from movie theaters only can help the United States economy. I like to see movies with friends occasionally in movie theaters but I can say that I've only gone to the movie theater maybe once or twice since the start of 2016. Although last year it seemed to be every other week there was a movie that I wanted to see and my friends with similar interest would go with me. Although the movie ticket is relatively low in price, the cost of the snacks and drinks are relatively high so for me, not much is spent at the concession stand. I also found the fact that on holidays such as Christmas and the US holiday the Forth of July more movie tickets were sold. I believe this is simply because people have off work can go with their family to see a movie in the theater.
ReplyDeleteCool topic to write about but, overall I think movie theaters do help the economy. They help by providing jobs to many people, people buy food and soda also the money that goes back to the film makers use that money to make even more films which makes more money. It truly is an endless cyclical.
ReplyDeleteWhile reading your post I thought of how $5 Tuesdays and $5 Student Thursdays may affect the economy as well. Movie theaters have hundreds of more customers on Tuesdays compared to another weekday such as Wednesday. I did in fact know that movie theaters get rarely any profit from the actual ticket, and this is why concessions are overly priced. Movie theaters have also changed a lot within the past 5-10 years. Now there are dine in theaters that bring a lot of money in and there are also bars for people to grab a drink before or during their movie. The timeline of movie theaters is pretty astonishing considering how much they have changed. This has affected the economy in a positive way and will only continue to better the economy. Very good topic and blog post!
ReplyDeleteYou never really understand how an economy would change without just one everyday thing that you never really pay attention to. I would have to say you used really good graphs and evidence to support your piece. It's a good topic to make people think and look around them.
ReplyDeleteMovies create lots of jobs so the help the economy very much. When you see a movie you think of the actors and actresses that star in the film and the directer but lots of people work on films from extras in the background, camera men, to storyboard artist that give the movie life. Then there are jobs at the theater itself like the ushers and the concessions workers. Movies and movie theaters by association help us in many ways while also providing a great show most of the time.
ReplyDeleteThis topic is very interesting overall because I'm sure alot of other people would like to see some decrease in the prices of the movies to go down more, because of the fact that people are also paying 5 dollars for candy, five dollars for drinks and other foods and 8 bucks on popcorn. For someone who wold go on a date they're just better off watching Netflix at home and go to the dollar store to buy snacks. If the movie companies wouldn't mind giving the theaters more of the profits, then prices would go down. Some movies aren't as good anymore anyway so they're basically wasting money on unnecessary things.
ReplyDeleteThe profit will always increase when there is that big movie, like the most recent Star Wars. It's not surprising that theaters help the economy, because of how often and how many people go to the movies. Then there's the food, which also increases the profit earned, because what is the movies without popcorn and soda? Interesting topic that not many people think about, but when they do, it makes perfect sense.
ReplyDeleteInteresting topic. Movies, not the theaters, create lots of jobs. IF you ever watch the end credits they are super long and filled with all the names of people who impacted the movie and no one wants to read it all because it is so long illustrating the amount of jobs a movie creates. Considering it is entertainment people are willing to fork over decent amounts of money for an experience they hope to enjoy and since most companies are domestic the money generally stays in the US and isn't outsourced to a random foreign firm. All in all nice job.
ReplyDeleteThis is a very interesting topic to write about especially because of all of the new and advanced movies that are coming out and producing sufficient amounts of revenue. I wasn’t very surprised that movie theaters help the economy because if you take in account the amount of maintenance people, servers, and even cashiers, that is a large number of people that are employed that may not have been if the movie theaters didn’t exist. Also when you go to the movies, because of the law of no carry in items, you get stuck paying $15 to $20 for a large soda and a medium popcorn. I totally understand why most of the money goes back to the productions because movies cost a pretty penny to make. If you think about it, the movie theaters have to stream the movies which makes it easy for them to make money. In the end, I like the use of your vocabulary words and think that this is a very interesting topic.
ReplyDeleteIt is amazing how much revenue popular movies can make. Due to all the money from the movies directors are able to hire the best actors and actresses and equipment. This is definitely a good thing for the entertainment industry because they are able to make better films. Since big movie companies are able to produce even better movies this will attract a bigger audience. As a result of having a bigger audience attend the movie, movie theaters and movie companies will get more revenue. The movies have a positive externality for everyone because everyone can benefit from the movie.
ReplyDeleteThe movie business has always been a big deal in US culture. As movies started to get better, and better technology started to develop, more people wanted to go see movies. It was always a money-making business, so it's no wonder it's helping our economy. I personally don't go to the movies very often, but when I do, I will admit to spending maybe around 25 dollars every time. The movie making industry also creates jobs! Even little jobs like sweeping up the set afterwards or handing tickets to paying customers.
ReplyDeleteEspecially with the Star Wars lineup, movie theaters definitely contribute to the economy. As stated ticket sales alone for The Force Awakens reeled in over two trillion dollars in ticket sales. And then that money is used to create even more movies, and the future movies don't even use up all of that money, so you are left with one large profit and even more money coming in.
ReplyDeleteThis is a great topic to talk about, Simply just because I work their myself and it truly does help economy with how much money all these movies make and how much people have to spend in order to get the tickets and the food that they want from the vend stand. Furthermore you can see from your graph that in certain months it has way more sales than in other months and that could be from the movies that our out or just the type of Holiday that is going on during that month to raise the attendance to movies. I would say that star wars this past year had a huge deal with the economy because of how many people had to go see the movie and that it brought in so much money for the people who made it and the theaters themselves. I had my first day of work when it was the opening of star wars and It was the busiest they said it has ever been on that day so easily movie theaters help with boosting the economy. Finally I did like how you explained in good detail how it helps the economy and also had graphs to back up your evidence which is really nice
ReplyDeleteI would like to see something about how five-dollar movie Tuesdays also affect the sales of tickets. I’m sure that the spike in sales might alter the bottom graph and make the data a bit skewed because of the extra high percentage for just one day. Also, I’m a bit confused about the bottom graph. Is the percentage part of the whole population of...the world? The United States? Or is the percentage suggesting a different location or something else entirely? I find it interesting that the highest point of people going to the movies is on Christmas Day. It’s kind of sad that the theaters are even open, considering all the employees won’t be able to be with their families for the day since they’ll all be working.
ReplyDeleteIt is inevitable that the economy will be affected by the money transfers occurring at movie theaters. I believe that while most movie tickets and all of the food and drinks at movie are still expensive, there are changes undergo that make the experience more affordable. For instance, every Tuesday, Marcus theaters offer $5 movies for all people. They also offer a $5 ticket and discounted food for students on Thursday. This gives those interested a way to see any movie for a cheaper price. This also creates a greater demand for movies throughout the week. Most people would wait until the weekend but with this discount, more movies are being seen throughout the week thus benefiting the economy even more. Overall, nice job discussing the effects of movie theaters on the economy as a whole.
ReplyDeleteAlthough more and more people are going to theaters to see movies, I think this will eventually fall due to the rise of services like Redbox or Netflix. As these services continue to expand their reach, many consumers may be tempted to remain at home and wait for the movies to be released for streaming. Hopefully, theaters will remain unscathed from the rise of the streaming era, as they are integral not only to our economy, but to our culture as well.
ReplyDeleteInteresting topic as I'm sure we all go to movies pretty frequently. One thing I'd be curious about is that you said 25% of income is kept by the theater. Is this only based on ticket sales to each movie? Or does this also include the snacks and beverages bought. I liked the fact that you explained how a recession affects the movie theater business, and would have to agree that during certain times of the year, I will go more often than others. Overall, good research regarding your piece and the effect that the movie theaters have on the economy as a whole.
ReplyDeleteI know the movies are very popular nowadays but I have personally not gone to the movies in over a year mainly because every movie that I really want to watch comes out on Netflix or I just rent the DVD from a Redbox which is a way cheaper alternative. Prior to reading this article, I did not know that movie theaters only get to keep 25% of the profits earned. With that being said, how do these movie theaters stay in business considering all the expenses they have on their end. Overall, great informative post.
ReplyDeleteMovie theaters are always packed on the weekends and I would assume that they would be banking it, but it was surprising to see that only 25% of of their sales goes to them and the rest towards the movie production company. And when you mentioned the amount of people in 2010 to go see movies dropped by 1 million was also interesting because it seems so unusual for movie theaters so have such a large drop. And by having other cheaper alternatives such as Netflix and Redbox doesn't seem it would decline movie theaters profits because people will still go watch movies no matter what. Even if people can't afford going every week, they will still come and see that new hit movie that everyone is talking about because of the hype it's getting so they will still be making a profit.
ReplyDeleteI believe that movies are very beneficial to the economy. Being a frequent movie watcher myself, I often see the theaters packed on 5 dollar Tuesdays and weekends. Movies will always be a fun thing to do with family members or significant others and friends. More and more money and time is being spent on making movies extraordinary, which will bring people in and make them want to spend money at the theater. Not to mention the foods and services the offer at the theater as well.
ReplyDeleteThe recent trend of good movies has really reinvigorated the industry, and a lot of people are taking their kids to see movies, meaning more sales, and, likely, more dedicated customers. The rise of "Franchising" (making more movies in a series, encouraging people to watch them all as they come out) has really sold more tickets, and box office bombs have helped studios realize what audiences want and what they don't. Netflix has really helped, because their large collection of movies for a small price allows many more people to be immersed in movie watching, and creates a new generation of film enthusiasts likely to be filling seats when they grow up. Film is as much an American Pastime as anything else is, and 2016 is looking to be a good year for box office records, with movies like Deadpool breaking records.
ReplyDeleteI found numerous grammatical errors and it was a bit vague. I think you could add a bit on how the taxes from the theaters goes to help the government and the more they make, the more the government gets as well. There’s no doubt that when a popular movie comes out they make a lot more money, but some of that goes to the government.
ReplyDeleteIt is interesting to me how the companies that show the movies only get 25% of the profit. Knowing how much money I spend myself at the movies alone, i can't imagine how much the companies must make without the movies themselves. Also the new releases and the cinematic mind blowers like the new Star Wars movie are sure to bring in trillions. I'm not surprised
ReplyDeleteSince going to see a movie is a luxury, people can live without it. This is what makes seeing a movie a very inelastic. As you mentioned, during a time of recession, many people stopped going to see movies because they didn´t find it necessary to their lives to go see a film when their income may have been lower. On the contrary, when the Marcus sponsors nights like $5 Tuesday movies or $5 Student Thursday movies, the original rate of customers of these days increases because of the lowered cost. Demand increases as the price decreases because the luxury would be more affordable to consumers.
ReplyDeleteThe development of Netflix and Hulu has resulted in the decrease in demand of movie theaters. Instead of paying for gas and food at the movie theater, people can now stay home and continue their daily routines in their houses. This increase in convince has led the consumers to spend less which increases their spending power. Although some special movies increase the attendance at a movie theaters, most of the profit does not go to the movie theater and once the movie is out of the theaters the attendance will drop once again. In order to try to gain more customers many theaters have put in extras, such as the dining theater or the special kids days that offer cheaper kids movies during the day. The theaters are not only competing wit each other, but also the new technology in the modern home.
ReplyDeleteGood concept but I get the sense that some of your facts are wrong. I don't think the average person goes to the movie theater two times per month. Also I don't think Star Wars box office sales were 2 trillion dollars. I have read articles claiming the movie theater gets more than 50% of the revenue from ticket sales... this doesn't line up with your 25% stated value. You might want to double check the meaning of deflating in an economic sense.
ReplyDeleteI personally go to the movie theater a lot less since I have gotten a Netflix account. I also just wait for the movies to come out on "movies on demand" which costs half the price of a movie ticket. If it was cheaper to go to the movie theater I would probably go more often. It is also a decrease in convenience. If the movie theater were to have more specialized sales it would increase the number of people that come and that would make up for the lack of profit they would sell their product/service at the full price.
ReplyDeleteThis is a good idea to bring in which do movie theaters impact the economy? Movies are something that I love to. And there is nothing better than going to the movie theaters with a group a friends to socialize as well as get that big bag a popcorn. But to see how much money the movie theaters rack up and impact the economy is outstanding. Such as Star Wars made over 2 trillion dollars in sales which has a massive economic factor. Movie theaters have to increase employment which helps decrease the unemployment rate. As well as increase the money in consumers hands in which then can then spend towards other products/services to then increase the GDP. Overall nice job showing the economic factor that movie theaters have.
ReplyDeleteI think its obvious that movie theaters help the economy, as they are definitely a profitable business. One explanation to why movies are so expensive these days is because the industry is constantly using and creating new technology to make the experience for the audience even better. Another reason that ticket prices are so high is because a large population of people love movies, which means demand is price inelastic. Movie companies have been able to really stretch their prices high and make a profit.
ReplyDeleteIt is very easy to see how movies theaters help the economy as they are a very large business. To show how large the movie theater business is, it could have been useful to show how many movie theaters there are in the country. Along with that, I was very surprised to know that people go to movies at least two times a month, as I was expecting it to be less. Although I was expecting it to be less, I still thought that the movie theater business would produce much more revenue. Since so many people go to movies and end up buying food and drinks to go along with their movie, I was expecting the profits to be higher. Lastly I enjoyed that you included a graph with the different holidays, but I wish you would have connected the graph to your overall article, as many people tend to go to movies on a holiday. Overall, this post was very well written and interesting.
ReplyDeleteThis was a cool blog post to read! My family and I are huge movie goers and so I can relate to this topic easily. I do agree that going to a movie is a luxury service/good and so once the country is in a recession people tend to hold onto their money rather than spend it. I found it really interesting that the theaters only get 25% of the profits. I would imagine at least 50% because without theaters the movies wouldn't be able to play! I thought this post was fun to read and you translated movies to econ very well!
ReplyDeleteI thought this was an interesting topic. The movie industry definitely thrives on a society that is putting increasingly more money toward entertainment. The price of movies has increased significantly over time, though movies have become more technologically advanced. I think your explanation of demand for movies was slightly off though. Really it is the increased demand that drives up the price which in turn increases the supply of movies because companies have more incentive. It makes sense that only a small portion of the ticket price is actually profit for movie theaters. In the end, however, I don't think it's accurate to call it a matter of whether or not movie theaters help or hurt the economy but rather to use the demand for movies and theaters as a measure of the health of the economy.
ReplyDeleteAlthough I think this is a very interesting topic some of the details seem a little off to me. I believe that from what you're saying that movies do have a impact on the economy but your predictions seem to counter dict the evidence that you are providing.
ReplyDeleteI agree that the movie theaters help out our economy, especially on rainy days when no one has anything else to do but stay inside. It was interesting to me that the movie theater only makes 25% of the profits from the movies that are showing. This is why I think they continue having the prices high for their foods because they would lose revenue otherwise and potentially go below their break even point. All in all you had a very intriguing post, I wonder what movie will be next after Star Wars that raises the demand by an immense amount based on different consumer tastes.
ReplyDeleteWhat an interesting article. I didn't realize that theatres only get 25% of the profits. I have heard that more profit is made from food and beverages than the ticket sales. I wonder what happens when a movie is a box office bomb. With the cost of making movies well over $100 in some cases, that is a lot of money to recoup if it is a flop.
ReplyDelete$100,000,000, not $100
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