$10 TICKET ON THE HORIZON?; COMING ATTRACTION: COSTLY SEATS?

Byline: Dave McNary Daily News Staff Writer

With several New York theaters charging $9 per ticket and many Los Angeles locales at $8, the once-unthinkable act of paying $10 for a movie could become routine soon.

That's the view of several consumer advocates, prompted by the recent announcement that Sony Corp. and Cineplex Odeon will merge their theater operations to create the world's largest theater concern. Others argue the $10 ticket is unlikely to appear for several more years.

USA Today, citing unnamed attorneys familiar with the case, reported this week that the U.S. Justice Department has launched a ``major'' investigation into the proposed merger. And Chicago attorney Clint Krislov filed a class action suit last week seeking to block the Sony-Cineplex deal on antitrust grounds.

Opponents to the merger contend that the deal, which will create a company with more than 2,600 screens, will eliminate competition and drive up prices.

``Our conclusion is, why else would they merge if not to raise prices?'' said Mark Green, New York City's public advocate. ``They're not merging to give us better popcorn.''

But others insist the $10 ticket is many years away because exhibitors know that reaction from customers would be too negative.

``I don't see a $10 ticket in the near future if you define five years as the outer edge of that,'' said Richard Walsh, senior vice president of AMC's western operations. ``You don't want to be perceived as sticking it to your customers.''

Chris Lanier, who operates the Motion Picture Intelligencer forecasting service, warned that kicking up prices would be suicidal because of what he perceives as the decline in overall entertainment value in recent years.

``No one minds paying a premium price and standing in line for an hour for a great movie,'' he said. ``The problem is that the quality has fallen and for mediocre films, demand is more likely to be price-sensitive.''

Despite the price hikes in New York and Los Angeles, the average nationwide ticket price last year was $4.42, held down by the discounts for matinees, seniors and children, according to the National Association of Theater Owners, or NATO. That figure represented a gain of 6 cents from 1995, 21 cents from 1991 and 71 cents from 1986.

Analyst Stewart Halpern of Furman Selz believes chains will continue their go-slow policies, which have amounted to an average annual increase of only 3 percent since 1980. ``On a historical basis, the increases have been very reasonable,'' he said.

NATO's James Kozak notes that for the 1991-96 period, the average annual increase is just over 1 percent. ``So the rate of increase has actually slowed in recent years,'' he said. ``We never do projections, but we expect that trend to continue.''

Still, New York City is likely to see a $10 ticket sometime during 2000, if current patterns hold. Sony's Lincoln Square theater, flagship of the Sony Loews chain, has been the leader in ticket price escalation in recent years, with many other New York theaters 25 cents behind. It went to $9 in April after reaching $8.50 in March 1996 and $8 in May 1994.

Sony Loews spokesman Mark Pascucci said the recent price hikes haven't deterred patronage.

``Lincoln Square is the most heavily attended movie theater in the country,'' Pascucci said. ``I believe it's the best theater in the world, so it's not out of line for people to pay a quarter more to go there than they would at other New York theaters. This is an expensive city in which to do business.''

Pascucci insists that prices have gone up because exhibitors face increased operating costs, particularly with the recent boom in building megaplex theaters with stadium seating and digital sound.

``Movie tickets have been undervalued for a long time in comparison with other entertainment like theater and concerts, and now the industry has made a conscious effort to improve the moviegoing environment,'' he said. ``WeD're no longer building big boxes with lots of little auditoriums. So there comes a point when you're offering a premium product that you have to raise prices.''

In Los Angeles, several chains including Mann, Pacific, Landmark and Laemmle kicked prices up to $8 over the past year, particularly at theaters on the Westside. Art-house specialist Landmark, for example, charges $8 only at its three locales in West Los Angeles - the Nuart, the NuWilshire and the Goldwyn Pavilion - while Pacific only charges $8 at the Cinerama Dome and El Capitan in Hollywood and at the Crest in Westwood.

AMC, following its policy of pricing slightly below the competition both at the box office and concession stand, has not gone past a top price of $7.50.

``We feel comfortable with the $7.50 top price,'' AMC's Walsh said. ``We will raise it in the next few years but probably not as much as people think we will.''

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Chart: (Color) TICKET PRICES INCREASE

Average movie ticket prices have sightly more than doubled since 1976 but the increases have been minimal in recent years.