The prices of cinema tickets are the cheapest they have been in a decade. When you adjust for inflation, a cinema ticket in 2025 is very affordable. In 2024, the average price of a cinema ticket was just £7.73, with a lot of operators offering discounts on top of this. Meerkat Movies, for example, offers 2 for 1 deals on ticket promotions on Tuesdays and Wednesdays, but why are tickets so cheap, and how are cinemas still in business?
Cinemas are Focused on Building Loyalty
Cinemas thrive because they capitalise on a loyal customer base. Many chains offer rewards to people who visit the cinema on a regular basis, to keep their business model viable. This is a very common strategy in entertainment, too, with Amazon offering free trials for 30 days to allow people to try out the experience, and those who are willing to pay to keep it. Although free trials cost the company money at first, they translate to loyal customers.
Even in other entertainment sectors like iGaming, big companies often have a dedicated section to offers and bonuses. For example, Betfair promotions offer deposit matches and free spins to customers. Although promotions like this tend to be generous, including cash drops, the true value comes from people who like the experience and who want to continue playing games. It also allows people to try out different games, without having to deposit very much. This is why companies can offer different promotions without risking their long-term business model.
With that said, promotions like this aren’t present in every entertainment sector. If you look at sports matches, theatre, and even bowling, the cost is significantly higher. With that said, to keep prices low, cinemas also capitalise a lot on the sale of food and drink. For all films, only a portion of the sale goes to the cinema itself. Beverage sales, however, help to balance out the low revenue that they generate from the ticket itself.
Cinemas are Taking Steps to Combat Rising Costs
The price of a ticket not only reflects the staffing costs, but also the energy costs of running the cinema. On top of this, cinemas like ODEON and Reel have to invest in the latest audio and visual equipment. They need to stay up to date with the technology that is available so that they offer a consistent experience to viewers. With that said, investments like this only happen every 5-10 years, showing that cinemas have more than enough time to recoup the costs.
On top of this, people tend to be more drawn to cinemas that offer better experiences, and are also willing to pay extra for a ticket. IMAX screens are a prime example of this, and you also have some 4D cinemas that offer higher prices but for a more immersive experience.
When you break down all the data, it’s clear that cinemas are taking steps to keep their ticket prices affordable. With that said, concessions have steadily increased over time. This has allowed cinemas to ensure that they remain competitive while being able to offer discounts and promotions to attract footfall on quieter days. As most people at least buy a drink at the cinema, it’s safe to say that the business model is just as viable as ever, even with ticket prices not rising with inflation.
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