Discount theater
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Discount theaters, also known as dollar theatres, second-run theatres, and sub-run theatres, are movie theaters that show motion pictures for low prices — often for as little as a dollar — after the films leave first-run theatres. These low-cost movie houses had their heyday in the 1980s as Hollywood studios were churning out motion pictures quickly, and the number of American screens had not yet expanded to catch up with the supply. These theatres, often the older theaters in older parts of town, typically had just one or two screens while newer multiplexes were built in the suburbs for first-run films.
At that time, of course, the VHS was just beginning to catch on, and the DVD had not yet been invented. Consequently, budget-conscious film-goers might wait for a film to hit the local dollar house instead of shelling out twice or thrice as much money to see the film first-run.
However, there were problems in the industry. For starters, in the view of many film studios, these theatres were treating films as loss-leaders by charging little for admission in an effort to score profits on high-markup concession items.
As the 21st century dawned, a pair of factors conspired to drive many discount theatres out of business: 1) an oversupply of American movie screens caused by ambitious overbuilding allowed films to stay longer in the first-run theatres, and 2) the delay between theatrical release and VHS or DVD release, known as the video window, continued to shrink. This latter factor convinced many moviegoers that it was simply not worth the money, hassle, and possible encounters with noisy fellow patrons and sticky floors, meaning dollar theatres could be in the twilight of their existence.
Despite these setbacks, however, dollar theatres do prove popular with some demographics. Often, lower-income families will see a movie in a dollar theatre as their prices are often easier to afford. In addition, cash-strapped teenagers will also go see movies in dollar theatres, where they can be entertained at an inexpensive price. Another reason teenagers may frequent dollar theatres is that some locations do not keep a close eye on those who sneak into R-rated films without a parent or guardian accompanying them, or will go see multiple films but purchasing only one ticket.