Megan Caraher General Purpose: To persuade Specific Purpose: To persuade the audience why movie ticket prices should be lowered. Topic: Why Movie Ticket Prices Should Be Lowered I.
Movie Studios do not rely on movie ticket revenue. A. According to the article “Hollywood’s Profits, Demystified”, movie studios spend too much money on advertising and prints for the movie ticket revenue to make up for. B. The revenue from selling dvds is a lot greater than ticket sales. C. For big movie studios who also own TV stations, they rely on revenue from TV licensing. 1. No matter how their movies at the box office do, they sit comfortably. II.
I’m going to give a little background on how films are distributed so you can understand how even though movie theaters do not rely on movie ticket sales, they make the greatest percentage from it, and movie theaters do not rely on this revenue either. A. There are 3 different entities involved with distributing a film; the movie studio, the movie theater and the middleman, the distributor. B. The distributor gains a percentage of movie profits and also can gain ancillary rights to distribute other movie merchandise. C. In charge of making the prints for the movie. D. Talk to a buyer who is hired by the theater. E. Usually lease the movie to the theater through percentage. 1. Take a percentage for each week the movie is shown. F. Movie theater usually doesn’t make profit until 3rd week. 1. Movie theater makes most profit from concessions. III.
Movie theaters make their profits from selling concessions. A. Time magazine article “Movie Theaters Make 85% Profit at Concession Stands” says it all. B. The high prices of concessions pay for high prices of showing the movies. C. Some theaters initiating a “our junk food or no junk food” policy. D. Without concessions, theaters would cease to exist. IV.
If prices were lowered, it would attract more people to the theater. A. People love a bargain and would feel like they’re getting on with cheaper tickets. B. If 3D tickets were lowered, more people would want to see it cause they’re new and fascinating. C. Maybe make people pay more only if they need glasses. V.
The National Association of Theater Owners website lists the audience attendance for the years from 1987-­‐2010. A. The peak of attendance was in 2002 with 1.57 billion people. B. Now it’s starting to decline with 2010 only having 1.33 billion people. C. Tickets in 2002 cost $5.80. D. Today tickets cost $8.12, an all time high. VI. Ticket sales heavily rely on frequent moviegoers. A. Frequent moviegoers count for about half of all ticket sales but only make up 10% of the population according to a 2011 Theatrical Statistics Summary on the MPAA website. B. This demographic usually includes 25-­‐39 year old males. Works Cited
Epstein, Edward J. "Hollywood's Profits, Demystified." Slate. N.p., 8 Aug. 2005. Web.
28 Nov. 2012.
<http://www.slate.com/articles/arts/the_hollywood_economist/2005/08/hollywoo
ds_profits_demystified.2.html>.
"How Movie Distribution Works." HowStuffWorks. N.p., n.d. Web. 28 Nov. 2012.
<http://entertainment.howstuffworks.com/movie-distribution2.htm>.
"Movie Theaters Make 85% Profit at Concession Stands." Business Money Movie
Theaters Make 85 Profit at Concession Stands Comments. N.p., n.d. Web. 28
Nov. 2012. <http://business.time.com/2009/12/07/movie-theaters-make-85-profitat-concession-stands/>.
"NATO Online." NATO. N.p., n.d. Web. 28 Nov. 2012.
<http://www.natoonline.org/statisticsadmissions.htm>.
"Theatrical Market Statistics." MPAA. N.p., n.d. Web. 28 Nov. 2012.
<http://www.mpaa.org/resources/5bec4ac9-a95e-443b-987b-bff6fb5455a9.pdf>.