Does High Pricing Hurt Movie Attendance

Does High Pricing Hurt Movie Attendance?

Movie ticket prices have climbed steadily over the years, often by around 40 percent since before the pandemic, while the number of people actually going to theaters keeps dropping. This means studios and theaters look richer on paper from higher revenues, but fewer seats are being filled. For instance, in 2025, domestic box office revenue edged up slightly from 2024, yet average earnings per wide release fell 14 percent because attendance crashed even as prices rose, according to analysis from thatparkplace.com. The average ticket price today sits much higher than in 2016, thanks to inflation and premium screens like IMAX and Dolby Cinema, so those revenue gains mostly come from charging more per person, not selling more tickets.

Attendance today lingers at just 64 percent of pre-pandemic levels, as shown in a 2025 survey of over 5,000 U.S. consumers by Bain, detailed in their report at bain.com. People see a trip to the movies as pricey, especially when you add concessions, which have outpaced inflation. Streaming services exploded from 2010 to 2024, pulling viewers home where it’s cheaper, and the pandemic made habits stick that way. Theaters now fight for a smaller pool of fans who only show up for big events like blockbusters, leaving mid-tier films to struggle amid too many releases chasing too few buyers.

That said, high prices do not scare everyone away. Gen Z attendance spiked 25 percent in 2025, driven by subscriptions like AMC A-List that make frequent visits affordable, often cheaper than a single ticket plus snacks in pricey cities. One Gen Z fan saw 34 movies in theaters that year, calling it a reasonable deal compared to dinners out costing $30 to $50, as shared in a personal account at businessinsider.com. These plans turn movies into a budgeted habit, especially as other entertainment prices rise too.

Theaters are adapting with smart fixes. Targeted discounts and loyalty programs based on customer data could boost repeat visits without slashing profits everywhere, Bain suggests. Premium perks like recliner seats and better food lifted attendance 40 to 80 percent in the 2010s for some chains. Hits like Inside Out 2 and Moana 2 topped a billion dollars each by drawing crowds to unique experiences you cannot get on your couch, per Statista data at statista.com. Re-releases in fancy formats like IMAX also pull people in at higher prices, turning old films into events. A Roth Capital expert noted that recent box office rebounds lean heavily on these elevated ticket costs, as covered at avclub.com.

Overall, pricing hurts broad attendance by making casual trips feel like a splurge, shrinking the regular crowd. But for event films, franchises, and younger subscribers chasing that in-person magic, higher prices support a rebound in targeted ways. The second half of 2024 hit $13.3 billion globally, the best since 2019, hinting at recovery through quality and innovation, as explored at accio.com and statista.com.

Sources
https://thatparkplace.com/the-untold-domestic-box-office-collapse-movies-made-14-less-on-average-in-2025-versus-2024/
https://www.bain.com/insights/reimagining-cinema-how-movie-theaters-can-fill-seats-again/
https://www.businessinsider.com/movies-in-theaters-resurgence-gen-z-visits-subscriptions-amc-2025-12
https://www.statista.com/topics/13403/cinema-attendance-recovery-drivers/
https://www.avclub.com/ticket-prices-movie-theater-rebound
https://www.accio.com/business/box-office-movie-sales-trend