Do You Still Go to the Movies?

By that, I mean, do you actually go to the movie theater to see a movie (you can't even really call them "films" anymore)? With options like OnDemand, NetFlix, vudu, Hulu, iTunes ... heck, even your Nintendo Wii, more and more people are opting to ditch the in-theater experience to see movies.

But how have theaters managed to stay ahead of this trend? By raising prices. Anyone who's been to a theater lately knows this to be true. I remember when we crossed the $10-per-ticket barrier with much disdain. It was an outrage ... at the time. Now, tickets for the final installment of Shrek are going for $20 each to see it in 3D IMAX. Unfortunately for the theaters, this is the only way they can hold onto revenue. Look at the facts.

While movie theaters' gross receipts are up year over year, actual attendance is down. Movie attendance over the recent Memorial Day weekend was down 22% from last year and marked the lowest total since 1993, according to Hollywood.com. What that shows is that theaters are squeezing the sponge even tighter. The down side is that there will be nothing left to squeeze, as movie watchers realize they can get a similar experience on their 50" flat-screen while saving $50 for tickets and food.

Reality: Movie theaters are clutching onto an old model that's slipping away (like the record companies did and like print publications are doing).
Solution: Make the experience of going to a movie theater more valuable than the experience at home. Don't simply charge more.