Popcorn & The Theater

Why is popcorn expected at movie theaters?
Thinking about movie theaters — it would be hard to not have the flooded images of popcorn come right along with it. However popcorn & movie theaters is a relatively new concept given the vast history of movie theaters themselves. Originally, movie theaters were marketed and made for the affluent and because of this movie theaters wanted nothing to do with popcorn. Movie theaters wanted to replicate the atmosphere of what was happening in real theaters at the time. Movie theaters had insanely expensive carpets and luxurious rugs and didn’t want popcorn getting ground up into it. Movie theaters also didn’t want to deal with the distraction of concessions or the distracting noises snacking would create during the film.

So What Changed?
There are a few things. First, movies added sound in 1927. Previously people who attended the movies needed to have the ability to read because all films were silent films with captions. But now, anyone would be able to go. This opened a large possibility for increased profits especially since sound muffled the distractions of snacks. However, most movie theaters were still hesitant to bring snacks inside their theaters.

Then, the Great Depression hit in August of 1929. This presented a huge opportunity for both movie theaters and popcorn. The American people were looking for a cheap diversion so most flocked to the movies. The average price for a bag of popcorn was 5 to 10 cents — which was a luxury most people could afford. As for the movie theaters — an average bag of kernels would cost around $10 and would last for years. Some movie theaters still refused to sell popcorn or concessions and would cease to exist by the end of 1930. Eventually movie theater owners came to understand that concessions were their ticket to higher profits.

What Happened Next?
World War II further bonded movie theaters and popcorn. Competing concessions such as candy and soda suffered deeply from sugar shortages which only furthered the sales of popcorn in the United States.

In 1945 movie theaters and popcorn were bonded forever. Over half of the popcorn consumed in the United States was eaten at the movie theaters. Theaters than began pushing their concessions as their value proposition to customers over the actual films themselves. Movie theaters had advertisements that played before (and sometimes in the middle) enticing movie goers to check out the snacks in the lobby. “Let’s All Go to the Lobby” was a 40 second advertisement that debuted in 1957 and is probably the best well known. The advertisement was selected by the Library of Congress for preservation in the United States National Film Registry because of its cultural and historical value.

Television and Popcorn?
In the 1960’s televisions became wide-spread throughout the nation and people began going to the movies a lot less. Popcorn wasn’t widely eaten in homes because of how difficult it was to make. EZ Pop came into the market where users would simply put the container over a heat source and the popcorn pops. Not even a decade later in 1970 — the microwave was introduced which made popping popcorn at home much easier. As the popcorn re-entered people’s homes, the traditional associations of popcorn and movies persisted.

And what about today?
Popcorn is still just as economically important to movie theaters as it was in the Great Depression. Movie-goers often complain about the high prices of movie concessions, but its a quick money maker for movie theaters. Movie theaters make an estimated 85% profit off of concession sales, and those sales represent 46% of movie theater’s profits.

And in recent years, luxury movie theaters began popping up across the country and they’re trying to re-invent the traditional popcorn-snack model. The luxury theaters offer offer more of an old-school approach while trying to make the the experience of attending more of a live show. These luxury theaters focus on gourmet meals with sliders and flatbreads. Even as the demand for luxury movie theater slowly increases I don’t think popcorn will ever be phased out. Popcorn is the cheapest thing a movie theater can make and many consider it a ritualistic experience.

Clients and Profits
Since I work in advertising I try my hardest to understand business models and their relationships to ads. Many clients fail to realize the importance of advertising and the role it plays in their business model. Many companies focus on their ads being “everything to everyone” and fail to realize the harm that brings to their bottomline. Focus on what you’re good at and find the people who care. I’ve always tried to re-inforce the ideal of “people like us, do things like this”.

People who go to movies — eat popcorn. If you’re launching a company or currently in one that is failing then you don’t understand the market or worse, your customer.

Movie Theater Popcorn at Home?

I recently purchased one of these because it was a staple in my home growing up for movie nights. But now I cook it all the time even if I’m just binge watching a casual show.