Movie concessions help offset ticket prices

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Movie theaters are notorious for charging consumers top dollar for concession items such as popcorn, soda, and candy. Are moviegoers just being gouged? Research (Stanford and the University of California-Santa Cruz) found that there is a method to theaters’ madness — and one that in fact benefits the viewing public. By charging high prices on concessions, theaters are able to keep ticket prices lower, which allows more people to enjoy the silver-screen experience. Although concessions account for only about 20 percent of gross revenues, they represent some 40 percent of theaters’ profits. That’s because while ticket revenues must be shared with movie distributors, 100 percent of concessions go straight into an exhibitor’s coffers.