Price Yikes

Introduction:
GV, Shaw and Eng Wah cinemas recently announced that there would be a price hike in movie prices (again) on May 1st 2005.

History:
From 4 Feb 2000, cinema-goers pay S$5 for all shows on Mondays to Wednesdays and day shows on Thursdays, instead of S$7. They will have to pay S$6 to watch a movie after 5 pm on Thursdays. Tickets will cost S$6 before 5 pm, and S$8 after 5 pm on Fridays and the eve of public holidays. Saturday, Sunday and public holiday movie prices will be a flat S$8 for all shows.

From June/ July 2001 ( I can't find the date), you need to pay 50 cents more for a cinema ticket. The Cinematograph Film Exhibitors Association, which has as its members Shaw Organisation, Golden Village and Eng Wah Organisation, announced the price hike on Monday 21 May 2001. Cathay Organisation, though not a member, will follow suit.

Now:
On May 1st 2005, three cinema operators would raise ticket prices. April 1st, a report in The Straits Times says that such a move would be illegal under the new guidelines to the Competition Act that takes effect next year.

The move by three cinema operators to raise ticket prices in unison is one that could be deemed illegal under a tough new law that takes effect next year. The cinemas’ move could be construed as price-fixing, which the new law frowns upon, said the Competition Commission in response to queries from The Straits Times. This practice is defined by the Competition Act as an agreement which “directly or indirectly fixes purchase or selling prices, or any other trading conditions”...

The nub of the problem is that three cinema operators...agreed to raise prices together. The three, which form the Cinematograph Film Exhibitors Association (CEFA), announced on Monday that they will raise weekday prices of tickets by 50 cents and weekend prices by $1 from next month. It said the hike was to cover the increase in GST and higher utility costs. The three account for 80 per cent of total box office sales here.

The new law takes effect on Jan 1, so the cinema operators’ move is not illegal — yet. But the [Competition Commission] urged the CFEA to “ensure that it complies with the provisions on anti-competitive practices and agreements when they come into force”.

Comments:
As can be seen from the $1 increase on the SIFF booking fee, $1 is enough to outrage film lovers. I believe there have been enough discussions on other blogs/online forums to give one a rough idea of how detrimental this would be to the cinema industry in Singapore. However, I for one believe that it wouldn't. People will still watch movies on the big screen. We'll still suck up and pay and life will go on. The big 3 whom take up 80% of cinema earnings in Singapore will be laughing all the way to the bank. The only interesting thing right now for us to wait and observe, would be for Cathy Organisation to STICK to their cinema prices or even REDUCE cinema prices and town movie-goers will flock to Cineleisure. Ideal location, 24hr movies on weekends, lower prices... what's not to beat? They just have to play their cards right...

Then again. They might not see it that way. Haiz.

Thanks:
Singapore Commentator

More on the Act:
Competition Act 2004