When Product Is Secondary

At the movie, it’s intermission time. So, you walk up to the food counter, order a tub of popcorn and two soft drinks. The bill comes out and is several times more than the ticket price. The first time it happened to me, I just stood there blinking at the bill. Was this real life?

Listen to this article

Yes, it stings. But here is the truth: that overpriced popcorn keeps the local cinema going. Let me explain.

The dirty secret
Most people think theatres pocket the full ticket price. No. Most of it goes straight back to the distributors, especially in those first few weeks of the movie. But the theatre still has to keep the lights on, pay the staff and not to forget the pompous rent inside premium mall real estate. While the ticket gets you through the door, the popcorn is where they start making money. If theatres sharply increased ticket prices instead, many viewers would stop coming. Snacks are easier to mark up because buying them feels optional.

Extras are actual business
Corn is cheap. Butter is cheap. So are flavouring, packaging and labour. The actual cost of making that bucket of popcorn is a fraction of what you pay. But inside a multiplex, it carries a huge markup. A tub of popcorn that costs under Rs 40 to make can sell for Rs 400! Businesses call this a high-margin product. And every smart business has one that quietly funds everything else. Take airlines. The Rs 2700 flight looked affordable until you added baggage fees, seat selection charge and an overpriced sandwich.

You are a captive audience
Once inside, your options are zero. Most multiplexes do not allow outside food. Economists call it a captive market and cinemas know that they are sitting on one. As you cannot walkout, prices are fixed accordingly and when in leisure mode, one spends differently. A movie outing is an experience. That is what we tell ourselves. Once in that mental zone, a Rs 400 popcorn feels like part of the fun, not an outrage.

Cinemas know this. That smell of fresh popcorn hitting you the moment you walk in is not an accident. The combo meal that bundles everything together so you don’t have to think, is deliberate. Nobody truly needs popcorn to watch a film. Yet somehow, it feels wrong without it.

Cinemas aren’t the only culprit. Stadiums, airports, amusement parks, and concert venues, all run by the same playbook. The amount is for convenience, atmosphere and the feeling of being somewhere special. The product itself is secondary. So, the next time you are frustrated at the popcorn rate, it is valid. But behind that is a business model stitching together economics, psychology and the reality of how modern entertainment works.

Latest

No longer required to pay State levies: Dalmia Bharat

The Act notified by the Central Government as amended...

Grounding of Parandur plan: Will it hurt TN dream?

The proposed second airport project at Parandur was announced...

FM Sitharaman to visit Canada, US

During her visit to Toronto, Canada,  Sitharaman will participate in...

UPI completes 10 years

Annual transaction volume expanded from just 1.78 crore transactions...

Newsletter

Don't miss

No longer required to pay State levies: Dalmia Bharat

The Act notified by the Central Government as amended...

Grounding of Parandur plan: Will it hurt TN dream?

The proposed second airport project at Parandur was announced...

FM Sitharaman to visit Canada, US

During her visit to Toronto, Canada,  Sitharaman will participate in...

UPI completes 10 years

Annual transaction volume expanded from just 1.78 crore transactions...

TCS lands major deal from Porsche

The acquisition will strengthen TCS’ presence in the German...

No longer required to pay State levies: Dalmia Bharat

The Act notified by the Central Government as amended the Mines and Minerals (Development and Regulation) Act, 1957 (“MMDR”), to restrict the imposition of...

Grounding of Parandur plan: Will it hurt TN dream?

The proposed second airport project at Parandur was announced in August 2022. Since then, people in and around the village have been protesting and...

FM Sitharaman to visit Canada, US

During her visit to Toronto, Canada,  Sitharaman will participate in the inaugural Economic and Financial Dialogue with H.E. Mr. François-Philippe Champagne, Minister of Finance and National Revenue...