DrCaleb DrCaleb:
What? Hollywood studios screw the theatre itself? There should be a junkfood tax that everyone has to pay on all junkfood to compensate the poor downtrodden theaters.
Nope, just noting the business model. Without high margin products like pop and popcorn, movie theatres would cease to exist because they hand over 70-90% of all admission to movie studios. The next time you see a headline that some movie made $150 million over the holiday weekend, you can bet that almost every penny goes right back to the studios - the theatres are lucky if they keep enough to pay for the power in the theatre, nevermind staff or other costs.
The movie exhibition industry is like most others - some products are sold at cost or near cost and others have a high profit margin. Look at gas stations, they make most of their profit off of people buying snacks and other high priced goodies, not off gas. Drugstores make next to nothing off the drugs, but make it all off the fees they charge you to dispense it (as well as any other goodies you buy at the same time). Fast food restaurants make a killing off pop and french fries, but next to nothing on burgers. And so on...
Frankly, if people don't want to buy over-priced snacks, then don't do so. Theatre staff don't hold a gun to anyone's head and force them to buy popcorn.
In the unlikely event the sarcasm was lost on you - I was giving a nod to the CD tax we all pay the CRIA to fund the poor artists who are stolen from when that CD is used to copy their music.