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UPDATE, 2:20 PM: This is what Lionsgate just advised me about reporting this weekend’s box office grosses with the The Lincoln Lawyer ticket deep discount which the studio is funding: “When any discount or coupon is used at a theater the exhibitors still report gross receipts based on the value of the tickets sold. There is also no necessity or guarantee that the tickets purchased with Groupons will be redeemed this weekend. The box office reporting for this weekend will reflect only the number of people who saw The Lincoln Lawyer this weekend and the ticket value at the specific time and place they saw it, like it always does. This is like if people used gift cards that were purchased from a theater chain to buy their tickets – the receipts always go toward the value of and towards the receipts for the particular show they redeem it for.” Do you agree?
12:45 PM: Let me say right now that Deadline’s weekend box office coverage of The Lincoln Lawyer‘s opening grosses will come with a big asterisk. Because they’ll be artifically inflated. Lionsgate’s deal with Groupon to sell $6 movie tickets for the pic through the big online ticketseller Fandango is even more ridiculous than Deadline previously reported. That’s because I’ve just discovered there’s also a $5 coupon so the price of one movie ticket comes down to $1. That’s right, go see the brand new movie starring Matthew McConaughey and based on Michael Connelly’s bestselling novel for any showing for a buck.
Summit Entertainment On Living Social — Offering Discounted Movie Tickets For Films
(“Get this deal for only $1! Use this promotional code and get $5 off the listed price at checkout: kb9d35nfjqtxf68pca3e.” For new Groupon customers only. Limit of all the discounted tickets is 2 per person, plus 2 additional bought as gifts. The $1 ticket offer is limited to 1 ticket, and $6 for the other 3. Not valid for IMAX or 3D showings.) I hear exhibitors have mixed feelings about the promotion – some like the extra biz but others abide by the movie industry’s cardinal rule to never discount the ticket price of a new release. This is a huge slippery slope because what happens when consumers decide $11 bucks is now too much to pay for any new movie? Now the exhibs do get reimbursed for the full ticket price. But, tell me, what’s the dollar figure that Lionsgate is going to report to me for grosses this weekend? From a marketing perspective, Lionsgate might think this is a smart move but is this really is this a good way to portray your movie on opening weekend? With box office down considerably this year, Hollywood is looking desperate.
Editor-in-Chief Nikki Finke - tip her here.
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A lot of people have already decided $11 is too much to pay for a movie ticket. While revenue goes up, aren’t actual attendance numbers dropping because of the price disparity, plus now more imax and 3D showings?
Can we say “race to the bottom.” I wonder if the studios will sue because $1 for a first run feature film is def scraping the bottom.
Hello McFly,
Ticket prices are between $12.50 – $16.00 here in LA depending where you go, plus another few $ if you buy online at many theaters. The prices are ridiculous here, as I’m sure they are in NY too.
I haven’t been to a movie yet this year in the theater because there hasn’t been anything worth seeing … oh wait, scratch that, I saw Gregg Araki’s KABOOM and it rocked, just like the NuArt! But that was it.
I’m definitely not going to see LINCOLN LAWYER even for a $1 – it ain’t worth it.
Amen.
just saw Lincoln Lawyer …. thought it was very entertaining which is why I go to the movies
Just like with DVDs, this pricing discount reduces the movie-going experience to a commodity, and it no longer carries any emotional value beyond a $1! Sad thing is, one can find better entertainment on premium cable for the price of three movies in a month… so if I opt to pay $75 for a month of cable and can consumer roughly 10 hours of filmed entertainment or I can pay $75 for 7 trips to the cinema in that same month for 14 hours of entertainment…
The discounting of DVD prices to about $4 retail was a fator in destroying that healthy revenue stream… see if this type of discounting doesn’t do the same…
As usual the short-sightedness of Hollywood bean counters is incredibly dispiriting…
You are *very* correct that actual ticket sales (vs. revenue, due to surging ticket prices) is *way* off.
Per boxofficemojo.com, there were 1.575 billion ticket sales in *2002* (the peak).
In 2010, there were only 1.339 billion – a 15% decline from a peak which occurred *8 years* earlier.
Hollywood has made this up by systematically goosing ticket prices to fairly absurd levels.
But now that the 3D surge/fad is largely played out – it is more or less Apocalypse Now boxoffice-wise.
Year-to-date 2011 (nearly a quarter over), US boxoffice is down *over 20%* from 2010.
Around here, Matinee prices for us are only $6.25 anyways.
And some regional chains and local theaters don’t allow for these kinds of passes/online tickets, which will probably hurt their deal’s chances of paying off in middle America.
Around here, weekend shows before noon are $5.
I agree that such a steep reduction is bad precedent, but, then again, this is McConaughey. This may start of a trend of value based pricing.
I think value-based pricing is the way to go and could ultimately save theatrical distribution. I remember reading a story about how the most illegally downloaded movies of ’09 were Star Trek first, then State of Play, then Transformers 2. Now, State of Play was a theatrical disappointment — why so many downloads? Because people wanted to see it but didn’t want to pay the same price they pay for something like “Avatar” or any number of effects spectacles. The chances are good that the majority of people who downloaded Star Trek and Transformers were either going to the theater anyway, or already had gone. Not so with State of Play.
Just look at the Best Picture nominees: it’s crazy that movie-goers were asked to pay the same ticket price to see “The Kids are Alright” and “Inception.” Both movies are enjoyable — and I’m an avid movie-goer (I’d go more than 2 or 3 times a week if there was good product) and there was no way I’d go see Kids in a theater. I did, however, happily pay to see “Inception” three times.
Well-I was happy to pay to see Inception on the bigscreen because of the visuals – but also happy to pay the same price to see Kids Are All Right in the theatre (and Cedar Rapids, etc) because the little indie films need the most support to keep them getting made.
This is absolutely correct. As a Producer of low and medium budget films, I can tell you that the days of smart adult films are coming to an end, because the average moviegoer will spend $11 on Avatar, but not on The Kids are Alright. More indie films would succeed in the theatrical market if indie films were offered at indie prices. It would give more opportunities to smaller films to be exhibited and turn a profit. And since the domestic video market is drying up, Netflix doesn’t pay enough to warrant a video-only release, and the foreign video distributors only want disasters and creatures, the market for smart, indie dramas and comedies is withering. Something needs to change. And value-based pricing seems smart and sensible.
Completely agree. Price indies relative to their budgets and you’ll see a huge spike in attendance. But I think you have to offer them day and date VOD to truly save the indie biz. It’s insane for indies to have to advertise AGAIN for the DVD release.
the movie poster communicates the central idea of the film (poorly) via a vanity license plate…
this is a turd in shit’s clothing.
Let’s be honest here, lawyer movies aren’t exactly all the rage these days. I doubt you’d see a discount on Super 8 to draw in people. Maybe the movie’s really good and they’re trying to get word of mouth out, who knows.
Will this make people think $11 is too much to pay for a movie? They already think that! People will pay what they pay. This will certainly insure Lion’s Gate more butts in seats this weekend.
I learned of this several days ago, but I wouldn’t see the movie for free…
I would get the Groupon ticket for “Lawyer,” then walk into the screening theater of a movie I wanted to see.
That’s probably going to happen everywhere, good call.
Even the people I know who used to see a movie a week have cut way back since prices went up in the last year. I don’t care what their research has shown. And once you lose someone they’re lost. If someone goes a few months without going to a theater they’ll get used to it. Lots of mistakes this year.
Love it! The Studios need to get off their high horse and start bending the rules. We all know movie prices are ridiculous these days!
Good for Lionsgate for trying something new, but it really shows no confidence in their film but hey maybe they’ll get more butts in the theatre.
And why is the Lincoln Laywer in 3D?
Sad thing is I still have no interest in it.
$11 IS too much to pay for a movie. Do you know what else is too much? $13, which is what I pay (and that’s not counting if I ever chose to see a 3D movie). so yeah, if it wasn’t for discounts like these, I’d never go to the theaters anymore.
Give me a break. $11 is nothing. You blow that on ONE cocktail in any major city and no one complains about that. Movie ticket prices have risen incredibly slow considering how much the cost of every other product has over the past 15 years. This hugely hypocritical “too expensive” argument is lame as hell and only gets more so with each passing year.
No, YOU blow that on one cocktail. $11 is way to much for that too!
Agreed! Thank you for saying it. In terms of group entertainment, it’s one of the cheapest activities around (compare it to going out in bars, plays, broadway shows, nights of comedy, seeing a band play, etc).
But you know in advance what you’ll think of the cocktail.
That’s not true. I’ve ordered a dirty martini at numerous bars and the quality varies wildly while the price remains generally the same. It’s the same crap shoot whether a drink or a movie, but a cocktail lasts, what, 15 minutes? A great movie can make me laugh, cry, cringe, scare, or, at its best, reevaluate perspectives on life. A great cocktail gives me a momentary buzz and maybe 10 seconds of pleasure after the first sip.
Apparently the studios are now hiring hipster alcoholics to do their astroturfing…
OMG, somebody speaks some sense! $11! Who freakin’ cares?
And word on the street is that Lincoln Lawyer is actually a pretty good flick. I’ll go and see it – but I need to find a date first. (So it looks like I’ll be spending $22. Oh no! Straight to the poor-house for me!)
Damien, you may be a smalltown boy turned big city lush but not everyone is a boozehound trying in vain to escape their unfortunate childhood.
There’s a reason why theater attendance is way down and Netflix subscriptions are way up. Why spend $12 or more for one person’s movie ticket and put up with idiots kicking you chair, yapping into their cellphones nonstop and taking half the movie to open their damned food when, for the same price, you can get an entire month’s worth of movies to watch instantly in the comfort of your own home?
In case you haven’t noticed, a lot of people are unemployed and even those that aren’t are pinching their pennies and, quite frankly, much of what Hollywood churns out these days isn’t worth a dollar much less $12 or more.
If Hollywood genuinely wanted to save itself, they’d quit paying actors and directors and producers $30+ million per film for a month or two of work.
@Basil. I’m not going to respond to your laughably inaccurate immature accusations but I will say that plenty of people can afford the $11 ticket they are complaining about being too expensive. The recession is a only a minor factor, the bigger issue here is the value of entertainment being compromised by technology paired with the building perception that paying little to nothing for movies and music is OK – it’s not.
Arguing about actor pay days is futile but don’t think Hollywood isn’t paying attention. I’m guessing there will be shift to more deals that include lower upfront salaries and bigger back end points. No one can argue 30 million if it’s a direct result of a movie making huge worldwide grosses. Nevermind the fact that bloated VFX budgets are just as much at fault for massive budgets.
This is no different than offering sneak previews — it’s to get word of mouth going. I hear it’s a fantastic movie, so this is very smart marketing on lionsgate part.
Studios have set robust screening programs or mounted sneaks for years to successfully build word-of-mouth. Why reinvent the wheel in a way that has such questionable stink on it? I’m not buying it – even if it’s only a buck.
The great thing about this deal that “stacks” is that I don’t think movie-goers will see it as Lionsgate going desperate. They’ll see it as a loophole that shouldn’t work, but does and allows them to see the movie on the cheap. It’s quite possible that many who go would never have paid to see it and 1) they may get the word out and 2) the extremeness of the deal itself may have some legs in getting the word out for the movie even after the deal has expired.
I saw like 90 last year…half of which were crap or huge let downs.
However, my priority movies will wait til next week due to watching college basketball. Those are Paul, Limitless, and the just expanded Cedar Rapids (smaller markets are getting killed by 3d screenings!)
First movie of the day here is 5.25. Not too shabby.
Wow, you saw about 90 movies last year? Even if you’re in the business, that’s way too many movies.
When will Hollywood learn there’s no market for the greasy Matthew McConaghey? Blech. Like others have said, I won’t even pay a buck to see the flick.
But, Nikki, to your other point: There ain’t no frikkin’ way I’m ever paying $11 for a movie. If you think America will, honey, then you’re living in dreamland. Times are tough, and we’re sick and tired of hearing about millionaires and billionaires, while we’re asked to pay their absolutely outRAGEous salaries. Not me, man…not me. Ever.
Can’t wait for the Jackie Chan remake, the “Toyota Law-Yah”
Wish they would have done this for Limitless because that’s what i am going to see. Looks much better. Just saw a promo for it on my Virgin cell.
its like when amazon sells a new album for $3.99
I Agree movie prices are quite high. However, In my opinion if they were “too high” theaters would not get packed, and, they do.
With that said, I think in all honesty throwing deals like this out there encourages people to go out more, get off computers. I don’t feel it says they have little faith in their investment. Just my two cents.
Lincoln Lawyer is 81% fresh on Rotten Tomatoes right now, so you can expect that the film is better than Limitless, its main competitor… (which is at 64% at this point…)
Did anyone see what Relativity did for Limitless with the time square stunt and that company called Thinkmodo? They created a cool viral video that barely mentions the film… what’s the point?
Honestly, I think the Groupon idea is inspired and smart…. and since the film is receiving a positive reception from critics, this promotion could turn out to be a game changer.
Kudos to the ‘gate for, *heaven forbid it*, thinking outside of the box.
Let’s just go make another Transformers movie and rake in the dollars.
Ticket prices are insane because the greedy studios take the majority of the cut during the ever-dwindling window when a release actually sells. Films with longevity like King’s Speech are the only types that yield actual ticket profitability for theatres when they hang around and the studio intake gets contractually lessened. The fact that hardly anything has legs anymore explains why concession prices are also through the roof.
You’re a little late to the game on this one. The theater chains rarely have those kinds of deals for films anymore. Almost all films get a straight percentage, usually around 55%.
I can see the issue on the potentially inflated numbers which will be filtering in over the weekend. When I heard about this offer, I tried to take advantage- only to discover that no theater near me utilized Fandango. I read the book and still want to see the movie, so I’ll be paying full price. However, Nikki makes a great point, of the grosses reported by Lionsgate, what is the real figure (minus the Groupon discount)?
The larger issue is whether Hollywood and the entertainment industry as a whole will begin adjusting their prices in order to keep drawing customers. While I love going to the theater, when the cost of a ticket to a first run movie is hovering at $10 in the midwest (where I’m at), that is a clear reason as to why people are not turning out. Staying at home is cheaper and easier, which is awful because there is something special about going to the “show.”
I went to the premiere of this movie. It was shockingly good. I think it’s one of McConnaghuey’s best performances. The soundtrack was sick. I think this is a good marketing tool. It’s a way to get ppl into the theatres then spread the word, because the movie is that good.
They will treat the revenue like the auto industry treats rebates… report the full ticket sale of $11, ignoring the missing $5-10 as a “factory to dealer incentive” to keep general ticket prices artificially high.
Since the extra $5 discount is only for new Groupon members, that would lead me to beleive that the discount comes exclusively out of Groupon’s share of the pie.
Say what you will about the deal overall in financial terms, but it’s interesting to see this play out with an adult drama, the type of film that has suffered at the box office as of late (excluding award season). It’s a decent idea to try to put butts into seats and maybe build a little word-of-mouth.
On the other hand though, my middle-aged mother is still afraid of the internet. Will a promotion like this be enough to sway her towards entering her credit-card info online?
I got nothing against MM. The movie’s poster is quite lame. I thought this was a mini-series until I saw this post. The reek of Studio PR hacks feebly attempting to spin this turkey is godawful. The general feeling is this movie’s a dud. Nothing you can do to make it better. Sorry studio. Another total loss.