Saudi Gazette report RIYADH — The Saudi cinema market has become the subject of several economic theories that try to explain the high price of cinema tickets in the Kingdom compared with the price of tickets in other countries, an Arabic daily reported. The AMC, the first company that has been issued with license to open a movies theater, charges SR75 for the ticket. Many Saudis on social media consider this a high price compared to that of Bahrain and Dubai. Dr. Obaid Al-Abdali, a marketing professor, said when the Nokia mobile phones were introduced in the Saudi market, their price was high then was lowered after several competitors entered the market. This is probably what is happening in the Saudi market today. The price of movies tickets will lower when more competitors enter the market. “The real challenge is how AMC will retain customers after new competitors emerge in the market? I believe that the prices of tickets will decrease in the upcoming months as Vox Company will enter the Saudi market now that it has won the second license. The company invests over two billion to operate 600 movies theaters in the next five years. AMC announced earlier that it plans to win 50 % of the market share and open 40 movies theaters in 15 cities over the next five years, with total number reaching 100 by 2030,” he said. In the last few years, social media websites had seen high participation levels from citizens following the hashtag #130SR_Cinema_Ticket. People were angry because the price of ticket jumped to SR130. AMC CEO Adam Aron said the current price (SR75) is too low for the big demand and the price should be increased. The price of cinema ticket is the highest in Arab countries as the price is subject to VAT (5%) and 25% fee charged by the Commission of Visual and Audio Media. A source in the Zakat and Income Authority dismissed earlier reports saying that the tickets of cinemas would be subject to taxes. The price of tickets in Riyadh is equal to the price of cinema tickets in Tokyo. In Riyadh it is $20 while in Japan it is $21. In the US it is $9 and increases if the cinema has D3 or D4 technology. So far, the price of cinema ticket in the Kingdom is the highest followed by Jordan at $14 and Kuwait $11.50. If a family of five people want to go to the movies theater in the Kingdom, they will have to pay over SR500 excluding the price of popcorn and soft drinks. — SG