Why Movie Theaters Need To Adopt The Happy Meal Model
The movie theater industry is not doing well. That’s not just an opinion. Box office numbers have not returned to pre-pandemic levels, and I’m not sure they ever will. Theaters thrive off of concessions, but even those have become increasingly expensive across the United States. Ticket prices have continued to bloat, and so have the prices of streaming services. But, if you were to pay for your entertainment for a month, which makes the most sense for the average consumer? Paying $30+ to see a single movie or paying $20-30 for one or two streaming services that will entertain you for the entire month? With the over-the-top inflation we’re currently dealing with, most average moviegoers will likely opt for the latter. I don’t blame them. I was an avid movie theater goer myself, but even I have cut back a lot. Not only because of pricing, but also because the motivation to head to the theater grows thinner and thinner.
Of course, home theaters have gotten more sophisticated over the years. 4K TVs have gotten cheaper and cheaper. Even higher-end OLED screens have become more affordable for the average consumer. So at-home image quality has become increasingly better for people around the world. Even fantastic sound has become more affordable for those interested in improving immersion through surround sound with Dolby Atmos features being included in many newer systems. All of this, in tandem with the theater experience being a toss-up movie to movie, means people are likely to hang out on their couch to enjoy a cinematic experience. There have been numerous reports of movie theater etiquette being absolutely abysmal, affecting the experience for people that are genuinely there to enjoy a story. It’s unfortunate, but that’s the reality. People scrolling on their phones, answering calls, talking loudly, playing around, rudeness, confrontation. It’s gotten to the level of absurdity. How do we go forward? Incentives.
Theaters need to treat each film like an event. Take notes from the fast food and concert merchandising industries. Provide exclusive merchandise to drive collectors into theaters, and other types of merchandise like apparel, toys, and other trinkets. This might be the clearest path to increase revenue streams when it comes to those bigger tentpole films. We saw the impact, through the meme-ification of it, with the Dune popcorn bucket. Then we saw the pink Barbie car popcorn bucket from AMC do very well too. Having well-designed, interesting collectible products may just be the key to padding those sales at the theater. Now, this might not remedy all the woes theaters are facing these days, but it might give theaters big and small the edge when ticket and concession sales seem to be at an all-time low.
In addition to merchandise, theaters could offer bundled deals similar to the Happy Meal model. Imagine a movie ticket that comes with a themed meal and collectible item, all for a single, more affordable price. These packages could be tailored to different demographics, such as family-friendly bundles for animated films or deluxe packages for blockbuster premieres. By creating a more comprehensive and value-driven experience, theaters can make going to the movies an event that feels worth the time and money. This approach not only adds value but also creates a memorable experience that can’t be replicated at home, drawing moviegoers back into theaters.