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Perusing the Sunday morning papers and a theatre ad caught my eye. The admission charge included a small popcorn and small soda. A pay one price deal. It appeared to work out to $3.00 over their regular admission charge. How is this done and what do the film companies say about it? Anyone out there try something like this before and the response?

Hmmmmmm, legal?... That part I can't say, but if it were done the way you explained it, the film distributor would be entitled to his cut of the extra $3... What I suspect they are doing is selling you a regular priced ticket and a cut-priced COUPON at a reduced total cost, and then you redeem the coupon for the goodies... By doing it that way they wouldn't have to pay the film distributor a share of the concession sale...

outaframe,

Are you sure doing the way you describe won't cause contract problems?--I have always wanted to do something on what reelman describes--but way too nervous on opening a "can of worms". The way you explained does make sense--but has anyone done this with out getting a "look" from the film companies?

Movieman, I have never done this either, but as long as you are keeping the transactions seperated by selling both a regular priced movie ticket AND a seperate coupon, but collecting for them at the same time, I can't see how there would be any contract violation... Any discount from the original cost of both items would have to be borne by the concession coupon, alone... However, I did once make an arrangement with a local music shop which provided a free movie ticket with every purchase of the soundtrack album of the movie... I cleared it with the film's distributor (Paramount) in advance, and discounted the ticket price to the music shop... They were making the combined sale, and the movie ticket was the discounted item, in that particular case...

The situation reelman describes would be a potential risk for the theatre. The studio could demand percentages for the entire amount, based on the way the ad is described. The studio could argue that the total advertised price was for admission, with the concessions being offered as a loss-leader. The ad should have had a fine-print line at the bottom, stating the exact amount of that price that was considered "admission". Also, any deviation from the theatre's normal admission would have to be disclosed in advance to the studio, and (if a multiplex) would have to be charged evenly throughout the complex.

Outaframe did things the right way, based on current exhibitor contracts. He set up his deal, then ran it by the studio.