Rising corn costs point to higher movie ticket prices

The lead in an Advertising Age story on how demand for ethanol is contributing to higher popcorn prices gave Grumpy Editor a hearty chuckle.  Written by Claude Brodesser-Akner, it read:

Suddenly, in Hollywood and sticky-floored movie theaters across the nation, "corn" really is a four-letter word.

The story points out demand for ethanol, produced from corn, "will claim 40 percent of next year's corn crop, munching away at the margins of theaters that rely on concession sales for as much as 45 percent of their revenue."

Popcorn, soda and candy sales in theaters have subsidized tickets in recent years.

With input from Ricard Gil, a University of Santa Cruz economist, the AdAge piece notes movie ticket prices are expected to jump as much as 30 percent this year as more moviegoers skip the expensive popcorn.

To make up revenue, movie theaters could push for more reliance on screening ads to the captive audiences, the story adds, pointing out an Arbitron study last year finds 63 percent of respondents 12 years and older say they don't mind ads before the feature film starts.