Originally Posted by
DenverBrian
Reminds me of the old days when I was a multiscreen theater manager. In cases when the movie failed, I would always come in and offer patrons two choices: 1) A full refund at the box office, or 2) two free passes for each person, which I had in my hand.
Guess how many people took option 2? Hint: if you're below 90%, you're wrong.
And then guess how many of those free passes we actually redeemed? Hint: If you're above 50%, you're wrong.
And very rarely are movies totally sold out at most theaters -- so you're giving away passes for seats that would otherwise go empty. Secondly, you have a second shot (extra free pass) at concessions revenue -- that $4.50 drink and the $7.50 popcorn have a pretty big profit margin.