Survey says moviegoers will pay more for luxury theaters

? The average ticket price across the United States is $5.35, but in major cities such as New York and Los Angeles the price is at or nearing $10. According to a nationwide poll of 1,000 adults conducted by Wilson Research Strategies, movie theaters could charge more and people would pay it.

When moviegoers were asked by the research company surveyors: “What amount of money is the absolute most you would pay to see a newly released motion picture, one you are just dying to see, at you local theater?” more than 53 percent indicated they are willing to pay more than the national average.

Paul Dergarabedian, president of Exhibitor Relations Co. in Los Angeles, a box office tracing firm, supports the results of this survey, telling the Screen Actor’s Guild Magazine, “It’s in our nature to complain about price increases. But people tend to fall back into their habits pretty quickly.”

AMC Entertainment Chief financial officer, Craig Ramsey said, “We believe ticket prices for the industry as a whole will average about a 5 percent increase over last year.”

In 2000 and 2001, two of the top three movie theater chains, Loews Theatres Group (Sony Theaters, Magic Johnson Theaters, Star Theatres) and Regal Entertainment Group (Edwards Cinema, United Artists) filed for bankruptcy protection under Chapter 11. The filings followed a five-year boom in the construction and acquisition of new megaplex theaters and the refusal to close smaller, less appealing locations. But the theater industry is coming out from under bankruptcy.

The theater industry is correcting the imbalance enabling them to return to profitable status. Belt-tightening, disposing of underperforming theaters, takeovers by investors like Colorado industrialist Philip Anschutz of Regal Entertainment Group, consolidation among competitors and better cash receipts at the box office are working.

“We’re done with the bankruptcy process,” said John Fithian, president of the National Association of Theater Owners. “All the signs are that the industry is hot and profitable.”

Moviegoer’s complaints about higher ticket prices normally come into play when they come away from a film dissatisfied. They wonder why they are paying the inflated salaries of actors or run-away production costs. However, moviegoers seem unwilling to give up stadium seating, digital sound and other amenities they’ve grown accustomed to at the fancier venues.

The public may scrutinize their movie choices more closely, but rising prices aren’t going to prevent people from seeing the latest blockbusters. Fithain said, “It’s really simple. It all comes down to good movie houses and good movies.”