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A night at the movies is now a much pricier proposition.
Blame it on the popcorn. Skyrocketing commodity prices for corn are jacking up costs at the concession stand and the box office.
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AMC Theatres, for example, recently raised popcorn prices nationwide by 25 cents a bag. Now, the smallest container (32 ounces) costs $4.75. And in certain markets such as Kansas City, Mo., ticket prices for shows after 4 p.m. now cost $10 instead of $9.
High oil prices and increased demand for ethanol, an alternative fuel produced from corn, are the culprits behind the rising price for corn, says Richard McKenzie, a University of California, Irvine, economist and the author of "Why Popcorn Costs So Much at the Movies and Other Pricing Puzzles."
The corn used for popcorn is a separate variety from the one used for ethanol. So food manufacturers have to keep increasing their bids for the popcorn crop to keep farmers from switching to the more lucrative fuel crop.
As a result, moviegoers will see price increases of $1 or $2 per ticket this year. But it's at the concession stand where they'll be hit hardest.
"Theaters want to keep the margin on concession items as high as possible and, on tickets, as low as possible," says Wesley Hartmann, an associate professor of marketing at Stanford University.
If $7 for a bag of popcorn shocks consumers, they'll most likely go without. If ticket prices are too high, they may skip the movie altogether and wait to see "Get Smart" when it comes out on DVD.
Don't resign yourself to a summer of TV reruns and microwave popcorn just yet, though. Here are some ways to make a trip to the movies a lot more affordable:
Seek out freebies
Many theaters offer free showings of family movies, especially during summer, says Mary Hunt, the founder of Debt-Proof Living, a consumer advocate Web site.Regal Entertainment Group, for example, hosts a Free Family Film Festival every Tuesday and Wednesday morning through the end of August, showing flicks such as "Curious George" and "Alvin and the Chipmunks." Clearview Cinemas' Kid's Club kicks off an eight-week series of free movies starting June 26.
Clip coupons
Your local Entertainment Book typically offers reduced-price movie tickets of $5 to $6 apiece.Also, keep your eyes peeled for special promotions at places such as grocery stores. Safeway's "Flicks for Free" promotion, for example, offered two free movie passes (through June 10) to shoppers who bought $40 worth of products from participating brands such as Coca-Cola and General Mills in one transaction.
Head to the drive-in
If there's a drive-in in your town, get behind the wheel. Even though these theaters are considered old-fashioned, they show mostly new releases -- and at the bargain price of about $7 a person for a double feature, says Jennifer Sherer Janisch, a co-creator of Drive-ins.com, an online directory.Some drive-ins don't even charge for kids, while others offer bargain per-car pricing. Concession fare is often cheaper, too, Janisch adds.
Check out independent theaters
Wait a month or so for new movies to show up at a local independently owned theater, and you can save more than 70%, advises Tawra Kellam, the founder of frugal-living newsletter Living on a Dime.For example, prices at Cinemark Movies 10 in Plano, Texas, are $1 for matinees and $2 for prime Friday and Saturday evening showings.
Buy in bulk
At AMC Theatres, avid moviegoers can buy tickets in increments of 50 for $6 to $7.50 each. The tickets don't expire."It's a substantial cash outlay, but boy, is the per-ticket price a good deal," Debt-Proof Living's Hunt says. There is one catch, though: The cheaper tickets cannot be used for special engagements (i.e., the first two weeks of a movie's release).
Avoid reservation sites
Buy online and you'll pay more for your ticket.Movietickets.com has a $1 surcharge; Fandango.com tacks on 75 cents to $1.50, depending on the area.
Trade up on snacks
If you're going to buy popcorn or soda, go big. "Per ounce, the smallest size of popcorn is twice the price of filet mignon," economist McKenzie says. Trade up for the larger size and you pay less per ounce -- plus, many theaters offer free refills.Though it's not much of a deal for a solo viewer, larger groups will find it more cost-effective than buying individually.
Go at off times
Friday and Saturday nights are the most expensive times to go to the movies, Hunt notes.In San Francisco, Cinemark charges an extra 50 cents per ticket on those nights. Theaters are also shortening their matinee hours, she says. New York's AMC theaters offer matinee pricing ($6 instead of $12 for an adult ticket) only before noon on Fridays, Saturdays, Sundays and holidays.
Be loyal
Joining the loyalty club at your favorite theater can pay off, even if you don't go to the movies often.AMC Theatres' AMC MovieWatcher Rewards offers coupons for a free small popcorn each week, plus two points per ticket purchased. After you've earned 30, you'll get a free ticket. The Regal Crown Club awards one point per $1 spent. Rack up 120 points and you can redeem them for a free ticket.
This article was reported and written by Kelli B. Grant for SmartMoney.
Published June 20, 2008
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