In July of 2006, the film
Pirates of the Caribbean broke
multiple box-office records for revenue.
Promotional Photo © Disney

There's no doubt about it, movies are big business. In 2005, movie theaters across the United States grossed a total of $9 billion.

Despite this huge revenue, theater owners were worried because 2004 saw gross receipts of $9.5 billion. You'd worry too if you lost half a billion dollars. While movie attendance has fluctuated the last few years and gross receipts has dropped recently, ticket prices have maintained a positive trend.

According to industry statistics, movie ticket prices have been constantly rising since 1994. (It would be interesting to look at how the average movie length has changed in the same time. Then we could compare the cost per hour to view a feature film.)

The table below shows average movie ticket price annually. What trends are evident? What might contribute to the steady prices from 1989 - 1994? How do you think ticket prices impact theater profits?

Math helps you plan ahead... how much do I need to invest so I can afford to see a movie next year? Now go and think mathematically.