Cineplex and Landmark launch monthly subscription plans

[sureLoss]

Seems like a decent deal if you go to the movie theater regularly

https://www.cp24.com/entertainment-n...fans-1.5538400

Cineplex Inc. is hoping that moviegoers who've missed the big screen will join the club.

Canada's largest film exhibitor has announced plans to launch a monthly subscription program on Wednesday that offers a small selection of perks and discounts at the multiplex.

CineClub will cost $9.99 per month - less than the price of a movie ticket - and give members a free movie every month, along with cheaper “member-priced” tickets and a 20 per cent discount on concession items.

[Looch City]

#### that seems like a great deal, wonder how long the it'll last until a price increase!

[Coach]

Not a bad move by Cineplex here. I’m probably in for that.

[Dion]

Even with the deal tickets and concessions items are still over priced.

[bizaro86]

Makes sense. I bet a lot of people sign up because it seems like a good deal. Then they either skip a month (100% profit) or end up going to movies they wouldn't have gone to otherwise.

Cineplex splits the money from tickets anyway, so discounting that makes sense. But when you go to an extra movie you might buy $24 worth of treats at 96% margins.

[KTrain]

It wouldn't surprise me if there were restrictions on this though. Like no opening weekend movies.

[WhiteTiger]

Hm, I like the sound of this. I see 3-4 movies a month, so looks like a pretty good deal.

[getbak]

Here's the new magazine with the ad (page 23): starcineplex.ca
Looks like it launches Wednesday: cineclub.ca

The ad specifically mentions Opening Nights, so at least that won't be restricted, it appears.


The fine print on this is going to be key. Will there be any rollover or grace period on unused months, or is it a hard line one per calendar month? Will it include the "premium" options like AVX, or will you have to pay extra for those, or will they be excluded entirely?

[#-3]

Originally Posted by bizaro86

Makes sense. I bet a lot of people sign up because it seems like a good deal. Then they either skip a month (100% profit) or end up going to movies they wouldn't have gone to otherwise.

Cineplex splits the money from tickets anyway, so discounting that makes sense. But when you go to an extra movie you might buy $24 worth of treats at 96% margins.

From my knowledge of concessions (which isn't none, but also not directly in the theater industry) it would be closer to 25% profit on the snacks. Facilities/Equipment that sit empty / unused for most of the day cost a lot, and staffing for demand surges is expensive. Lots of overhead in that industry, when compared to your home microwave. The one they do have going for them is a generally captive consumer base that is not attending based on snack costs, so they do get a very very healthy margin above 20%.

[Engine09]

Thanks for the heads up.

I'll be signing up for sure, bare minimum I hit 2 movies a month.

[Calgary14]

Looks like a decent deal, but I am guessing it lasts 4-6 months before they start to do monthly price increases and/or scale back the discounts

[Calgary14]

Originally Posted by #-3

From my knowledge of concessions (which isn't none, but also not directly in the theater industry) it would be closer to 25% profit on the snacks. Facilities/Equipment that sit empty / unused for most of the day cost a lot, and staffing for demand surges is expensive. Lots of overhead in that industry, when compared to your home microwave. The one they do have going for them is a generally captive consumer base that is not attending based on snack costs, so they do get a very very healthy margin above 20%.

Every theatre is a bit different but generally the margins are closer to 96%, the actual product costs next to nothing - popcorn is basically seeds and pop is sugar and water.

The concessions are the money maker for any theatre and the big name movies just get people in the door

Source - colleague who owns a theatre

[Sliver]

Originally Posted by Calgary14

Every theatre is a bit different but generally the margins are closer to 96%, the actual product costs next to nothing - popcorn is basically seeds and pop is sugar and water.

The concessions are the money maker for any theatre and the big name movies just get people in the door

Source - colleague who owns a theatre

If true, that has to be ignoring all other costs other than the material cost of the concession items, which is no way for a business to calculate their actual margin. Those buildings are huge and are probably second only to churches for how inefficiently they're used. Sale of concession items subsidizes all the times the building is costing the owner money, but not generating any income (mornings, most weekday matinees, etc.).

[Calgary14]

Originally Posted by Sliver

If true, that has to be ignoring all other costs other than the material cost of the concession items, which is no way for a business to calculate their actual margin. Those buildings are huge and are probably second only to churches for how inefficiently they're used. Sale of concession items subsidizes all the times the building is costing the owner money, but not generating any income (mornings, most weekday matinees, etc.).

Two different things - gross margin and net income. Gross is the actual cost of the product (ie. the popcorn kernels, butter, bag etc). Those are very high margins because they're very cheap. Same for pop, the plastic cup costs more than the actual pop itself.

Net income takes into account everything you mentioned - overhead, building, staff, etc.

Usually when someone talks about margins they're talking about how profitable a specific item is (ie. cost of the item is $1 and it sells for $20).

For subsidizing income, that's where they tend to get creative - ie. birthday parties, sporting events, corporate meetings, etc - anything for additional income to supplement the core business of movies

I think Cineplex is trying really hard to get people out, and hopefully it works. Curious if Landmark offers something similar soon to remain competitive

[Sliver]

Originally Posted by Calgary14

Two different things - gross margin and net income. Gross is the actual cost of the product (ie. the popcorn kernels, butter, bag etc). Those are very high margins because they're very cheap. Same for pop, the plastic cup costs more than the actual pop itself.

Net income takes into account everything you mentioned - overhead, building, staff, etc.

Usually when someone talks about margins they're talking about how profitable a specific item is (ie. cost of the item is $1 and it sells for $20).

For subsidizing income, that's where they tend to get creative - ie. birthday parties, sporting events, corporate meetings, etc - anything for additional income to supplement the core business of movies

I think Cineplex is trying really hard to get people out, and hopefully it works. Curious if Landmark offers something similar soon to remain competitive

I guess I was referring more to the operating margin. 96% sounds pretty sweet as a margin, but the operating margin is more relevant to a theater and if people understood that better I think they'd be less hostile/critical of concession prices.

Not backpedaling or disagreeing with you...I just think movie concession pricing needs to be viewed in terms of operating margin versus basic margin on individual concession items. I didn't explain my point well so your explanation is appreciated.

[Ozy_Flame]

Originally Posted by Dion

Even with the deal tickets and concessions items are still over priced.

So are beers at a pub but you still go for a pint.

[Lubicon]

Originally Posted by WhiteTiger

Hm, I like the sound of this. I see 3-4 movies a month, so looks like a pretty good deal.

Originally Posted by Engine09

Thanks for the heads up.

I'll be signing up for sure, bare minimum I hit 2 movies a month.

Nothing to add but how in the world do you find that many movies you want to see? There's maybe 1-2 per year tops that I go to the theatre for.

[Sliver]

Originally Posted by Lubicon

Nothing to add but how in the world do you find that many movies you want to see? There's maybe 1-2 per year tops that I go to the theatre for.

I go to tons a year. Most I'm just meh on, but I love the whole theater experience, so it's more about a comfortable two hours munching on some popcorn with my family in a stress-free, distraction-free place versus going to see a movie I want to see.

I also try to think of it like this: a production costs millions of dollars to make and took hundreds of people to plan and create, and I get to watch the whole thing for like $12.

When it's a good movie, I'm totally stoked. Usually I walk out and think the movie fataing sucked, but I still enjoyed my relaxing couple hours.

[Dion]

Originally Posted by Ozy_Flame

So are beers at a pub but you still go for a pint.

Not very often. A six pack and my big screen TV works fine

[WhiteTiger]

Originally Posted by Lubicon

Nothing to add but how in the world do you find that many movies you want to see? There's maybe 1-2 per year tops that I go to the theatre for.

I really like movies. I like all sorts/genres of movies. I like the theatre experience. I also use going to the movies as part of my bio-clock flip when I go day-nights.

With my shifts, I work two 12 hour day shifts, then flip immediately to two 12 hour night shifts. Over the years, how I've found that best works for me is that I go to my second day shift, and then when that's done, I just stay up. I usually end up staying up until 4am or so.

One part of that is going to a movie as late as I possibly can. For instance, I went to see the 22:35 showing of a movie last night. I enjoy a movie with a nearly empty theatre with almost never any kids in it. I'm done around 00:30-01:00 and I'm a significant chunk of the way to 04:00.

I also don't pay any attention to critics or reviews. So I decide if I want to go see a movie based on the trailer(s) alone, and make my decision on it. I find it's much easier going in with that kind of mindset instead of pre-judging a movie based on someone else's opinions.