Thread by @myfinology

Is Popcorn a luxury? 🍿

Let's find out 🧵

📽️ & 🍿- it's a match 🫰

But well, you'd all agree, these popcorns in movie theatres cost you more than the movie ticket itself!

#PVRInox #stockstowatch

No denying, popcorn in theatres is a luxury. So, people tend to avoid these when their incomes are running low, i.e. in times of a crisis.

- atleast that's what economists will tell you

But popcorns could be counter-cyclical to the performance of the economy! 🔁

During the 1973-74 recession, 1981-82 economic slowdown & 2008 global financial crisis, movie ticket & popcorn sales went up counterintuitively! 🤯

The reasoning given was - "Cheap Thrills" 🥲

Although movies & popcorns are luxuries, they are comparatively a cheaper luxury than, say, vacations, amusement parks, concerts, etc.

#pvrinoxmerger

To explain this, conventional economics got defeated, while behavioural economics came up to the rescue...

During times of economic hardship, people look for a cheaper alternative to daily life and an escapist alternative to find solace in 👇

Thus, when everything around is in turmoil, movies offer a welcomed & affordable distraction for most people. 😎

You won't believe but there is an actual index to measure this -

"𝗕𝘂𝘁𝘁𝗲𝗿𝗲𝗱 𝗣𝗼𝗽𝗰𝗼𝗿𝗻 𝗜𝗻𝗱𝗲𝘅" 🧐

However, this counterintuitive logic loses its stand when you see what happened during covid, thanks to the lockdown 👇

#cinema #blockbuster

With #PVRInox merger, do you expect popcorn prices to surge further led by their monopoly?

Also, do you think the covid-induced slowdown in theatre occupancy was temporary or people are used to the convenience of OTT platforms?

Tell us in the comments 👇