Tren Griffin+ Your Authors @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Dec. 19, 2019 1 min read + Your Authors

1/ Of ~ $210,000 to $220,000 of ticket sales last year, most of that goes to the movie companies. If he sells $1,000 of tickets for “Captain Marvel,” $650 or $700 goes to Disney. "I am really a concessionaire. I make my money on popcorn, not on the movie.” 

2/ "AMC uses an algorithm to estimate how many bags it will sell each weekend. Popcorn is among the most profitable items at the concession stand." An average AMC customer spends $4.80 on food and drinks." 

3/ "To achieve the room-filling scent and signature taste-bud-assailing butter flavor of movie-theatre popcorn, cinemas use Flavacol, a sandlike substance whose only resemblance to dairy is its paper-carton packaging. Flavacol is cheaper and easier to manipulate than butter."

4/ "In this example, the cost of concessions for the movie theater is only ~13% of revenue. In contrast, the cost of movie rental and advertising is 52% of revenue (Ouch!). Innovation tends to be focused on the snack bar." 

5/ 25iQuiz: The business model for a movie theater is about selling complementary goods (concessions) associated with a loss leader (showing movies).

What are possible complementary goods in a open source-based business model? What is the equivalent of popcorn in open source?

6/ 25iQuiz: What two words are missing from the following sentence? Because "Captain Marvel" is a scarce product and movie theater screens are not scarce, Disney has:

"wholesale _______ _______ power"

versus theater owners.

You can follow @trengriffin.


Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.

Enjoy Threader? Sign up.

Since you’re here...

... we’re asking visitors like you to make a contribution to support this independent project. In these uncertain times, access to information is vital. Threader gets 1,000,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Your financial support will help two developers to keep working on this app. Everyone’s contribution, big or small, is so valuable. Support Threader by becoming premium or by donating on PayPal. Thank you.

Follow Threader