Should it cost less to see indie movies?

If market demand determines prices, perhaps a movie ticket to popular blockbusters like Mission: Impossible should be more expensive

Charlize Theron in "Young Adult"
(Image credit: Paramount Pictures)

A ticket to see the latest Mission: Impossible sequel and the "little" Charlize Theron movie, Young Adult, costs the same amount, says Derek Thompson at The Atlantic. Yet while customers are flocking to see the former — M:I has grossed over $140 million in the U.S. — Young Adult has barely earned over $10 million. This raises the question: "If demand is supposed to set prices, why isn't seeing Young Adult much cheaper than seeing Mission: Impossible?" Considering the recent news that movie attendance hit a 16-year low in 2011, perhaps the film industry could save itself by taking this concept to heart. Would charging different prices for films depending on their budget, likelihood to be a hit, or how long they've been released really work?

Nope: This is too idealistic, says Thompson. If, for example, the prices were cut after a film's opening weekend, people would purposefully wait to see it, slashing a movie's potential profit. Plus, "price can repel as easily as it attracts, because it's a signal of quality." Though Mission: Impossible and Young Adult both received rave reviews, if one was cheaper to see than the other, audiences would "assume it's garbage." And as a business model, theaters would never go for this. It would encourage people to sneak into movies (purchase a cheap ticket to The Iron Lady then slip into Sherlock Holmes) and lead to tense price wars between rival cineplexes.

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