Source: USA Today, BTIG, J.P. Morgan
Moviegoers will be paying more money to see How to Train Your Dragon in 3D this weekend. Some theaters are increasing ticket prices by as much as 26 percent for the latest flick from DreamWorks Animation.
J.P. Morgan's Vasily Karasyov reports that the 3D premium is about 15 percent higher than theaters were getting for Alice in Wonderland, and seven percent higher than for Avatar.
The decision to boost prices is likely due to a number of factors, the most important of which is the obvious interest moviegoers have in seeing more 3D content. The demand is strong, and a price increase isn't likely to keep many patrons at home. Yet even as more digital screens are added each day, there is still a bottleneck happening and that means 3D films are losing screens quicker. Dragon will be hit by the emergence of Clash of the Titans next weekend. Raising ticket prices will help soften the financial blow that comes from losing screens.