The Panda Posted January 3, 2017 Share Posted January 3, 2017 18 hours ago, Jason said: The Canadian share of domestic box office changes roughly in proportion with changes in the exchange rate. However, because Canada's share of the domestic box office is small though (8%-10% in that data range), a weakening of the Canadian dollar by 10% would only reduce the total domestic box office by about 1%. Added a clarification to the original post. Even then it's still probably overstating the effect, as the real exchange rate (when you set the price levels for average movie ticket prices in Canada and the US) will tell you more about the effect on the DOM BO. 1 Quote Link to comment Share on other sites More sharing options...
AniNate Posted January 3, 2017 Share Posted January 3, 2017 I wonder if anyone in Buffalo or Detroit crosses the border for cheaper movie tickets Quote Link to comment Share on other sites More sharing options...
Lordmandeep Posted January 3, 2017 Author Share Posted January 3, 2017 26 minutes ago, tribefan695 said: I wonder if anyone in Buffalo or Detroit crosses the border for cheaper movie tickets Well with the exchange rate with 1 USD around 1.34 Canadian I Doubt it. I think some may, but considering how many things can go wrong at a land border crossing I be surprised if it is material. Also for any Canadian if you ever visit Las Vegas, do a small day trip to Death Valley. Quote Link to comment Share on other sites More sharing options...
Kvikk Lunsj Posted January 3, 2017 Share Posted January 3, 2017 18 hours ago, Christmas Baumer said: You'd freeze to death here. I'd pay you to come to Toronto in February when it's -20 C. Seriously. I would pay for your plane ticket. It would be glorious. I would not mind Toronto. Quote Link to comment Share on other sites More sharing options...
JB33 Posted January 3, 2017 Share Posted January 3, 2017 3 hours ago, tribefan695 said: I wonder if anyone in Buffalo or Detroit crosses the border for cheaper movie tickets OT, but conversely a lot of Canadians travel down to Buffalo and Detroit for hockey games. Quote Link to comment Share on other sites More sharing options...
Jason Posted January 3, 2017 Share Posted January 3, 2017 (edited) 5 hours ago, La La Panda said: Even then it's still probably overstating the effect, as the real exchange rate (when you set the price levels for average movie ticket prices in Canada and the US) will tell you more about the effect on the DOM BO. Definitely. I just managed to get my hands on data from 2014 and 2015. Turns out that as the Canadian dollar weakened substantially over those two years, the average ticket price in USD held steady because of a high rate of ticket price inflation in CAD. This also shows up in the Canadian share of domestic box office, which did not fall according to the overall trendline from 2000-2013. (The time period over which the Canadian dollar was either rising or falling only slightly.) In other words, it turns out that the substantial weakening of the Canadian dollar over the past two years has had a very small impact overall because of a large increase in the local currency ticket price. I'm guessing the reason why the Canadian box office share did in fact rise when the dollar was strengthening is that theatres had no incentive to reduce local ticket prices. Graph of yearly ticket prices in CAD and USD from 2000-2015, also showing the exchange rate (right axis): Updated graph of Canadian box office share vs. exchange rate, 2000-2015, trendline created from 2000-2013: Edited January 3, 2017 by Jason 1 Quote Link to comment Share on other sites More sharing options...
AndyLL Posted January 3, 2017 Share Posted January 3, 2017 1 hour ago, JB33 said: OT, but conversely a lot of Canadians travel down to Buffalo and Detroit for hockey games. Got to go where the real hockey is played. Quote Link to comment Share on other sites More sharing options...
The Panda Posted January 3, 2017 Share Posted January 3, 2017 2 minutes ago, Jason said: Definitely. I just managed to get my hands on data from 2014 and 2015. Turns out that as the Canadian dollar weakened substantially over those two years, the average ticket price in USD held steady because of a high rate of ticket price inflation in CAD. This also shows up in the Canadian share of domestic box office, which did not fall according to the overall trendline from 2000-2013. (The time period over which the Canadian dollar was either rising or falling only slightly.) In other words, it turns out that the substantial weakening of the Canadian dollar over the past two years has had a very small impact overall because of a large increase in the local currency ticket price. I'm guessing the reason why the Canadian box office share did in fact rise when the dollar was strengthening is that theatres had no incentive to reduce local ticket prices. Graph of yearly ticket prices in CAD and USD from 2000-2015, also showing the exchange rate (right axis): Updated graph of Canadian box office share vs. exchange rate, 2000-2015, trendline created from 2000-2013: Great analysis! I hate analyzing exchange rates, so I'm glad we had somebody better at it to explain it. 1 Quote Link to comment Share on other sites More sharing options...
AniNate Posted January 3, 2017 Share Posted January 3, 2017 It's not that difficult to cross the border. You need a passport now but if you just cooperate and look bored they'll let you pass in minutes. Quote Link to comment Share on other sites More sharing options...
