That is basically the conclusion Mohammed came too. He also noted the entrepreneurial facet of product pricing.
While I am a big proponent of setting prices to capture value, in this instance I’m wary of raising prices. Consumer sentiment regarding cinema prices is akin to a tinderbox waiting for the spark to flare up. Why? Consumers can easily calculate the premiums they are paying to enjoy the cinema experience. Instead of paying $11 per-person at the box office, they know that in a few months they’ll be able to rent the DVD at Redbox for a buck or so. Similarly, they know that concession-priced popcorn, candy, and soda can be purchased for a fraction of the cost elsewhere. A $35 night at the movies can be replicated at home for $5 or so.