The Cure for the Ailing Movie Business Is To … Raise Ticket Prices?

Last year was a bad one for the movie business, with the fewest tickets sold since 1995 and revenues that dropped 4.5% from the previous year. Analysts foresee a better year ahead in 2012, and what is it that’s expected to turn things around? Yep, higher ticket prices.



The Hollywood Reporter cites the forecasts for several analysts, all of whom predict an increase in revenues compared to 2011. This doesn’t necessarily mean that more people will be going to the movies more often. Instead, two of the analysts say box-office gains will occur almost exclusively by theaters charging more for admission.

Eric Handler, an analyst with MKM Partners, wrote that things are looking good for 2012, and here’s why:     Read Full