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The Power of Leo by Subir Chowdhury

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Chapter FourFIXING THE FLOW

There are three basic ways in which movie houses make their money: from admissions, from onscreen ads, and from their concessions. They tend to be quite efficient in the way they take our money at the ticket booth and in their presentation of loud, boring ads that we, the captive audience, have no desire to watch. But their approach to serving up popcorn and soft drinks is a disaster.

According to a Stanford University study, concession sales represent about 20 percent of movie theaters’ gross revenues, but they account for about 40 percent of their profits. That’s because, as we know so well, their food prices are outrageously high. As CNN reported in 2010, “Movie concession operators make a 900 percent profit margin ...

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