This may be approximately true, but I don’t think it’s obvious and uncomplicated.
According to the googling I did on the last post, the price to the theatre of showing a film goes up with the number of seats. It’s banded, so unless they’re near the bottom of a band, removing those seats will have no marginal effect on that. And we’d expect them to cluster near the tops of bands.
But I can imagine other things it might have an effect on: ad revenue, trailer prices (I think they have to pay to show them, but I’m not sure), insurance prices, weird corporate manoeuvring (if we increase our seat count by 5%, we’ll be able to negotiate a better deal).
This may be approximately true, but I don’t think it’s obvious and uncomplicated.
According to the googling I did on the last post, the price to the theatre of showing a film goes up with the number of seats. It’s banded, so unless they’re near the bottom of a band, removing those seats will have no marginal effect on that. And we’d expect them to cluster near the tops of bands.
But I can imagine other things it might have an effect on: ad revenue, trailer prices (I think they have to pay to show them, but I’m not sure), insurance prices, weird corporate manoeuvring (if we increase our seat count by 5%, we’ll be able to negotiate a better deal).