CAN $10 MOVIES BE TOO FAR OFF?

Byline: Jesse Hiestand Staff Writer

It may be ``3000 Miles to Graceland,'' but will Angelenos pay $10 to get there?

Filmgoers in Manhattan will face forking over an Alexander Hamilton to see the critically panned Elvis-themed action flick at Loews Cineplexes starting Friday as the theater industry hits a milestone in movie pricing that is certain to test the patience of the paying public.

Ticket prices have climbed steadily for seven years - including a price hike in Los Angeles to a top of $9 a ticket in some theaters - but the new $10 mark in New York seems to carry the kind of psychological impact Dr. Hannibal Lecter would relish.

``It could be a barrier to people going,'' said movie industry analyst Art Rockwell. ``If New York doesn't result in disaster, you can bet others will try it.''

Not right away, according to the New York-based Loews Cineplex Entertainment Corp.

Its most expensive tickets in Los Angeles will be $9 when a 25-cent price hike goes into affect Friday in the Beverly Center and Century Plaza. Regular adult admission will remain $8.50 at its five other theaters in Los Angeles, including its flagship Universal City complex.

``I wouldn't expect it to increase to $10 in Los Angeles for at least a few years,'' said Mindy Tucker, a spokeswoman for the Knoxville, Tenn.-based chain.

That's because Loews last raised prices companywide two years ago by 25 cents to 50 cents, matching AMC Entertainment Inc.'s then high-water mark in Los Angeles of $8.50. Even then Loews had the highest prices in the land, again in Manhattan, at $9.50.

``Ten dollars has always been this magic number,'' said Paul Dergarabedian, president of Exhibitor Relations Co. in Los Angeles, a box office tracking firm. ``People will be put off by it, of course - it's in our nature to complain about price increases. But people tend to fall back into their habits pretty quickly.''

For many, the test will be whether they are willing to drive extra miles to save 50 cents, he said. Either way, moviegoers will likely scrutinize their movie choices even closer, so marginal pictures may suffer while blockbusters like ``Hannibal'' continue to draw crowds.

``It's outrageous. It's ridiculous for an hour and 45 minutes,'' Amy Elkebir, 26, of Woodland Hills said Monday at the AMC Promenade 16 in Warner Center, where the top ticket costs $8.50.

Terry Anschultz of West Hills already has his prescription for ticket prices - matinees whenever possible.

``Most of the movies aren't that great,'' the 43-year-old brokerage firm employees said at the AMC Promenade, a day after he caught ``Hannibal'' for a $4.50 Sunday matinee. ``I'd be hard-pressed to think I got $10 of entertainment. But $10 is cheap to make my wife happy.''

Loews said prices are being hiked 2 percent to offset operating costs like minimum wage increases - not because the chain reorganized under bankruptcy laws this month.

Following the lead of many of its competitors, Loews sought Chapter 11 protection and announced plans to close 21 of its 365 theaters, none in California. Bankruptcy reorganization was key to the company being acquired in a $1.3 billion deal led by Onex Corp. of Toronto and Los Angeles firms Oaktree Capital Management and Pacific Capital Group Inc.

Two studios that owned the bulk of Loews, Sony Pictures Entertainment and Universal Studios, are expected to walk away empty-handed, Tucker said.

At least five other chains are in Chapter 11 after the industry feverishly built modern megaplexes - those with stadium seating, digital sound and other amenities - before closing less-popular and smaller multiplexes. Experts believe the industry needs to shed up to 10,000 of its current 36,000 screens to correct the imbalance.

Rising ticket prices allow the industry to continue to set records even when movie admissions in the United States have declined for the past two years, off about 2.5 percent in 2000.

Hollywood racked up its ninth consecutive year of record revenue at the domestic box office, hitting $7.7 billion in 2000.

Counting matinees and discounts, the average price of a movie ticket in the United States was $5.08 in 1999, according to the most current statistics from the National Association of Theater Owners.

``We hope people will take this increase in stride and understand it's a necessity to operate,'' Tucker said. ``We still think there's a tremendous value in what we offer.''

Movies are relatively cheap compared with other entertainment and events. In Manhattan, where sky-high leases are a factor for $10 movie tickets, admission to a Knicks basketball game at Madison Square Garden costs an average of $100, about the same as a Broadway play.

Prices are less, but not by much, in Los Angeles, where a Lakers game at Staples Center costs an average of $80 a seat, adult admission to Disneyland or the new California Adventure is $43 and premium seats at some concerts start at well over $100.

``If you like the movie, then spending 10 bucks isn't a problem,'' Dergarabedian said. ``It's after coming out of a bad movie that people feel a little cheated.''