Studios Warn That Ticket Price Hikes Could Sour Summer Box Office

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During economic turbulence, it’s often thought that movie theaters can endure hardships because they provide an affordable form of live entertainment, a tradition dating back almost a century to the Great Depression. While people might be cutting back on expensive travels, high-priced sports or concerts, going to the cinema is significantly less costly compared to other activities outside the home. As Wall Street analyst Eric Handler of Roth MKM puts it, “The staycation effect has been consistent over the years.

Instead of searching elsewhere, take a look at the extraordinary success of “A Minecraft Movie“, which raked in an astonishing $162 million during its opening weekend from April 4-6 – surpassing expectations by $100 million – amidst the historic market losses where approximately $4 trillion was wiped out due to the uncertainties surrounding the Trump administration’s fluctuating tariff policies. It seems this performance wasn’t an anomaly. In its second weekend, despite more unfavorable economic news, market volatility, and a temporary halt on tariffs by Trump, the movie still grossed an impressive $78.5 million from April 11-13 in North America. Notably, domestic earnings for the year have matched those of 2024 for the first time in months as “Minecraft” inches closer to the $1 billion mark globally.

On the other hand, some are concerned that the movie-going experience has significantly shifted since COVID-19, which occurred around the same time as the surge of premium video-on-demand and streaming services. Certain Hollywood producers claim that up to 15% of frequent cinema-goers have yet to resume their previous habits. While blockbusters like Minecraft might find success, what about mid-budget films and original content?

At CinemaCon in April, Sony Pictures’ movie chief Tom Rothman, along with other top executives from the studio, expressed concerns about increasing ticket prices and decreasing timeframes between film releases (referred to as “shrinking windows”) potentially threatening the cinema industry. Rothman stated, “Cost and timelines can benefit us or harm us. Theaters have the intelligence to navigate both, and Sony is ready to collaborate with you on both matters.” He further emphasized, “If cinemas and studios strategize for the long haul and make the right decisions, the future will be splendid.

Sony recently published findings indicating that approximately one third of U.S. citizens believe they can watch a new movie at home within a month of its cinema debut, despite the fact that some film studios delay the availability of their content on Premium Video on Demand (PVOD) services by 40 to 45 days. Disney typically waits for 60 days. Renting a PVOD title usually costs between $20 and $30.

(Simplified version)
Sony revealed a study saying that around one third of Americans think they can watch a new movie at home within a month after it’s in theaters, but studios often don’t make movies available on PVOD for 40 to 45 days. Disney takes 60 days. It costs between $20 and $30 to rent a PVOD movie.

An area of increasing worry is the escalating trend towards high-end films like Imax, which significantly contribute to a movie’s profits. In places such as Los Angeles and New York, it can cost around $25 to watch a premium format film. The average ticket price for a regular seat in 2024 varied between $11 and $13. However, Cinema United, the largest theater owner association, reported that the average adult ticket price in 2024 was $11.51.

In the first quarter of this year, Steve Buck’s research firm EntTelligence reported an average general seat price of $13.82, which was higher than the $13.02 from Q1 of 2024. For premium screens, the average Imax adult ticket price increased from $18.31 in Q1 of 2024 to $19.51 in Q1 of this year. Comparatively, the average standard seat ticket price went up from $12.14 in 2024 to $12.93 in Q1 of 2025, which is halfway between the general and premium seat prices.

In the case of Minecraft, prices for standard tickets have increased to $15.15, as reported by EntTelligence. Those optimistic about cinema’s survival during this economic slump view this rise as an indication that the box office might even experience growth.

As a gamer, I can’t help but notice that the resurgence of movie theaters – after a tough month like March – isn’t all that shocking. With financial news taking over the headlines globally, it makes sense that folks seeking an affordable escape would turn to movies, as they’ve done historically when times are tough.

Based on Handler’s analysis, the domestic box office has consistently experienced growth during seven of the past eight recessions. This growth was particularly significant in three instances, with double-digit increases recorded. On average, revenue increased by approximately 7.3% during these economic downturns. Moreover, for the first time ever, the domestic box office surpassed $10 billion in 2009.

The impact of people opting for home vacations, or staycations, will significantly influence the performance of the 2025 summer cinema season. This season officially begins on May 2 with Marvel’s upcoming movie, “Thunderbolts”. The Memorial Day weekend could potentially be a blockbuster period. During this time, Disney will release their live-action version of “Lilo & Stitch”, and Paramount will introduce “Mission: Impossible – A Final Reckoning”. Other notable summer blockbusters include Universal’s reboot and live-action adaptation of “Jurassic World” and “How to Train Your Dragon”.

Originally, this tale made its debut in the April 16 edition of The Hollywood Reporter’s magazine. If you’d like to get the magazine, you can do so by clicking [here to subscribe].

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2025-04-18 19:56