Recent Developments in Per Capita Pricing in Discount Movie Theaters Available to Purchase

In the summer of 1989, Paramount Pictures began a per capita pricing policy for distribution of its films to discount theaters. This paper examines such proposed fees, including the arguments advanced by Paramount to justify these, as well as those offeredand the actions taken in opposition by the discount theaters. The author concludes that Paramount’s proposed plan is apparently merely an attempt to compensate for its own lackluster performance in 1989 at the expense of discount theaters. He offers some evidence to substantiate this and suggests that Paramount’s efforts should be redirected toward improved production and marketing strategies.