Nobody is coming to movie theatres any more. So, let's raise the price.

This seems to be the contrarian strategy adopted by some of China's movie theatre operators.

After a two-decade shrinkage in the size of film audiences, exhibitors are resorting to the luxury-hotel concept and offering "five-star film-going experience" that includes adjustable genuine leather sofas as well as state-of-the-art sound systems and ultra-wide screens.

Just as facilities get more enticing, prices get more prohibitive. Huaxing International Movie City in Beijing's Shuangyushu District offers the hit movie Matrix Reloaded in two versions - the subtitled one for 80 yuan (US$9.6) and the dubbed one for 60 yuan (US$7.2). But the most spacious screening room with the best facilities charges 150 yuan (US$18) per admission.

A random survey shows that few are regulars here. Most come out of curiosity. "I thought an 80-yuan ticket would include one drink, but on the contrary they sell drinks and popcorn at obscene prices," says a law student who is getting her first-time experience in a five-star cinema.

Some employers buy group tickets as bonuses or gift items. Expatriates and high-tech workers don't seem to mind the price, either.

Nationwide there are six movie theatres that are certified to have achieved "five-star" status. They are all in metropolises like Beijing, Shanghai and Guangzhou. Tickets usually start at 60 yuan, and can more than double depending on the movie selection and the room.

These prices roughly correspond to those in the US. But if you take into account average income in China, which implies the PPP (purchasing power parity) yardstick in economics, they are priced as luxury services rather than mass entertainment products.

(HK Edition 07/31/2003 page1)