> To me this suggests that theater’s are at least partially incorrectly pricing things which explains why they are struggling.

Theaters are struggling because they need the working class to attend, and the working class has no money. This is true for any non-essential business that depends on 90% of the people.

To find new ways of extract money may help a little, but in the end the basic economics do not add up.

A couple of years ago Odeon turned our nearest theatre into a 'luxe' theatre (adult tickets £20), and the next nearest theatre was left as it was, but all tickets £5 each (tickets at both theatres where about £14 previously). I think it was an experiment to see which model was most economic: major investment in tech and comfort/£100+ for a family of four to watch a film with snacks and beverages/fewer tickets sold as a result OR minimal capex/far more affordable to attend/loads more tickets sold. The £5 tickets for all showings have stopped, but you can still get them a lot of the time (they have surge pricing for blockbuster releases,and some upgraded premium seating now). I think they've found a way to be affordable to the masses and fill seats, but still extract max revenue from better off families, by having half their theatres follow one model and half follow the other.

Theater attendance is down every year since 2001(I believe) the "working class" has much more disposable income than back then adjusted for inflation. Movies are hilariously cheap, people just prefer streaming and TikTok. It's sad but i have accepted this fate.