Young Consumers: Cutting Cable Costs & Splurging on Movies May Not Be Contradictory

What happens with theatrical movies never seem to be a predictor for what happens to the rest of entertainment media. But when ticket prices continue to rise, you have to wonder -- what about the traditional financial model of supply and demand?

Entertainment options are voluminous these days. So it's incredible that one of the older, more traditional entertainment platforms still finds a way to increase ticket prices 5%, to an average of $7.89.

A large part of this comes from studios charging much more for those high-flying, in-your-face 3D movies. The 3D movies continue to wow consumers -- or at least a specific type of consumer.

TV content owners see this as a positive sign, since they expect a rise in consumers who will pay for digital TV, either on a per-show or per-channel basis.



Research suggests that young, somewhat less-financially equipped families have been talking about "cutting the cord" by dropping pricey $50-$100 monthly TV packages. Many are looking to satisfy their entertainment needs through cheaper "Over The Top" wireless TV services, Netflix, or rougher Internet-to-TV connections.

Movie ticket prices, meanwhile, are driven in large part by theater-goers aged 12-34.

Somehow, these young theater-goers -- many of whom still live with their parents -- need the social interaction found in a movie theater at least once in a while, maybe once a month. That face-time costs about $8 a visit -- which coincidentally is the monthly price of a Netflix "instant streaming" subscription.

These two young groups of consumers -- TV viewers and movie-goers -- may not be exactly identical. That's for a media researcher to decode -- or are these consumers akin to openly devout dieters who praise their low-carb, low-protein, low-calorie food intake, only to sneak off once in a while for an extra large smoothie?

2 comments about "Young Consumers: Cutting Cable Costs & Splurging on Movies May Not Be Contradictory".
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  1. Thomas Siebert from BENEVOLENT PROPAGANDA, January 31, 2011 at 12:33 p.m.

    Off topic, but springboarding off one portion of this piece: If depressing dreck like "Yogi Bear" can still be lumbering towards a probable $100MM gross, post-production conversion of lousy 2D films to 3D is still a viable business decision.

  2. Paula Lynn from Who Else Unlimited, January 31, 2011 at 3:23 p.m.

    $7.89 for a 3D movie? More like $12-14.

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