On the Call: DreamWorks CEO Jeffrey Katzenberg

AP News
Posted: Oct 26, 2010 7:53 PM
On the Call: DreamWorks CEO Jeffrey Katzenberg

When the cost to see the latest "Shrek" movie in Imax 3-D briefly hit $20 in New York this summer, theatergoers nearly choked on their popcorn.

AMC Theatres quickly said its Manhattan operators had made a mistake. But the intrusion on the price point made some movie fans nervous.

On Tuesday, DreamWorks Animation SKG Inc. Chief Executive Jeffrey Katzenberg told analysts that the additional charge, or upcharge, on 3-D tickets remains stable, for now.

QUESTION: As you know, there has just been a lot of rhetoric in the popular press about 3-D upcharges and how a $5 3-D upcharge, even in New York and Los Angeles, is too high. What we are hearing from the exhibitors is that to soften that blow to the consumer, what you may see this holiday season is no change to the 3-D ticket price, but maybe in some markets a change to the 2-D ticket price. First of all, have you heard that? Can you confirm that?

RESPONSE: No ... . I would say in the last eight weeks, 10 weeks I have quite literally circled the globe twice. I have physically touched down in 18 countries and met with both our distributors and exhibitors from 44 territories. I recently spent time in the last four weeks with five of the six largest exhibitors in North America. And in uniformly 100 percent, with no exception, there has not been a pricing issue about 3-D for quality 3-D product. There has been some issue with pricing on 3-D for subpar 3-D product. The pricing, at least for the fourth quarter, is stable. It is right at the $3.25 to $3.50 range. Internationally, it is in the 3 euro range. And we have not seen anything in the way of either prices moving up or moving down. They have been very stable. And I think until there is a change in the economy overall, we would expect it to remain stable.