Movie theaters to implement dynamic pricing
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I find the approach interesting, but also very "tiresome" in so far as the bean counters injecting a hyper-competitive element into the whole experience akin to the manner in which the airlines have turned up the heat in the aquarium. At one stage of the game, they both enjoyed a "golden era".
https://www.bloomberg.com/news/articles/2017-10-24/regal-cinemas-plans-t...
Regal Entertainment Group is testing demand-based pricing for films, potentially leading to higher prices for top hits and low prices for flops, a big change for an industry that typically uses a one-size-fits-all approach.
Working with app maker Atom Tickets LLC, which has lobbied theaters to try dynamic pricing, Regal plans to test the concept in early 2018 and see if it boosts revenue and fills more seats at non-peak times.
“Changes to the historical pricing structure have often been discussed but rarely tested in our industry, and we’re excited to learn even more about how pricing changes impact customer behavior,” Amy Miles, chief executive officer of the Knoxville, Tennessee-based exhibitor, said Tuesday on a call with analysts.
Shares of cinema chains have been pummeled by falling attendance and threats to the traditional Hollywood movie model, with more people staying home to watch streaming services like Netflix Inc. Studios, also hurting, have been pushing to make new movies available in homes sooner -- cutting the window of exclusivity that theaters enjoy.
Regal, the second-largest chain in the U.S., reported Tuesday that revenue dropped 12 percent from a year earlier to $716 million, attributing the decline to an underwhelming movie slate. Regal shares have slumped 21 percent this year. AMC Entertainment Holdings Inc., No. 1, has tumbled 58 percent.
Industry executives are debating whether dynamic pricing will increase attendance. Some object to a system that would involve charging higher prices for hit movies and lower prices for unpopular movies. Miles said Regal would conduct the tests in enough markets to be statistically significant and said the experience of Atom Tickets, which sells movie passes through its app, will be helpful.
“If we can get consumers to go one more time a year, that is transformative to the whole business,” said Matthew Bakal, co-founder and executive chairman of Atom. The company has already worked with Regal on services such as pre-ordering concessions.
Miles said Regal won’t consider sharing revenue with MoviePass, a controversial service that offers consumers once-a-day admission to theaters for less than $10 a month. MoviePass pays full price for tickets to theaters and therefore loses money on every subscription. The company said it plans to make up the difference through advertising revenue and by gaining a share of theater concession sales.
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Top of Page Bottom of Page PermalinkFull Name: I rang a silent bell
I think that is a bad idea.
I think that is a bad idea.
Top of Page Bottom of Page PermalinkFull Name: nebulous nelly
The theaters make their money
The theaters make their money from concessions, they just want to get people through the door.
Top of Page Bottom of Page PermalinkFull Name: The Lonely Questioner
Movie theaters are nearly
Movie theaters are nearly dead. I long for the final death knell.
Top of Page Bottom of Page PermalinkFull Name: fish
Why would you want that lager
Why would you want that lager? Movie theaters rock, except for the prices at most. Do you have a screen that big at your house?
FOM, don't you mean "dynamic" pricing?
Top of Page Bottom of Page PermalinkFull Name: skifurthur
While the OP might find this
While the OP might find this "tiresome," the big ticket distributors have been testing the dynamic pricing model for concerts for a couple of years now. It's only a matter of time before they institute it.
Top of Page Bottom of Page PermalinkFull Name: 19.5 Degrees
They've already instituted it
They've already instituted it, at least with respect to lowering prices on concert tickets that are significantly undersold at larger venues.
Sure, it might be a logical progression in a capitalistic paradigm, but just how far do we as a country and society want to go down that road? Seems to me that it only serves to widen the mote between the "haves" and the "have nots" - in terms of stacking the deck so the rich always get to be first in line,.
skifurthur: I kind of picture you as someone who might have an affinity for the "golden era" of film
Top of Page Bottom of Page PermalinkFull Name: skifurthur
They've already instituted it
That isn't dynamic pricing, that's called a fire sale.
Not really. I have never been much of a film buff.
Top of Page Bottom of Page PermalinkFull Name: Alias
Tony has an affinity for "The
Tony has an affinity for "The Man" when it comes to entertainment. He can tell you why you should feel grateful to pay more for anything.
Said with love.
I was trying to find cheap mets tix for my old man and either the mets are waaaaaaay more popular when they suck than I realized or dynamic pricing is a one way street. I foresee the bad movies being 2 dollars cheaper and the good movies being 20 dollars more expensive.
Top of Page Bottom of Page PermalinkFull Name: Oaksterdam Dan
Dynamic pricing in good art
Dynamic pricing in good art (Music) I will pay
Dynamic pricing when 8 out 10 movies are dogpile art. Free or not for me!
Top of Page Bottom of Page PermalinkFull Name: skifurthur
Tony has an affinity for "The
I'm not sure where you got that from. For the record, I think dynamic pricing sucks for anything. Set a price up front and people will either buy it or not. What I will plead guilty to is the knowledge about the costs that promoters entail along with the risk factors involved for them to make a profit. Any smart business person should set prices based on that and if they are too high, people won't purchase a ticket. If the promoter is taking the risk from putting on a show, they should be able to get a fair return on their money. I'm not sure if you consider artists as "The Man" in entertainment. They too should be able to make some sort of a living wage for their efforts as well. Entertainment/concerts are frivolous purchases when it comes down to it. If you don't go to a show because the ticket price is too high, you will not end up dying.
The things that you might end up dying from are the things that scare me the most about dynamic pricing. If implemented in more segments of the market place, one might see frozen holiday turkeys being sold at $0.79 a pound most of the year and when demand is high, being priced at $4.50 a lb.
Among the people I have the most interaction with, are a large percentage of Mets fans. Almost all of them have shouted with glee on how cheap they can see a game for each season via StubHub. Although it might not be the best seat, opponent or day of the week, they more often than not end up paying under ten dollars for a ticket. Now, the Mets don't sell tickets directly via a dynamic pricing model but it is very easy to get cheap tickets that cost way under face value for the majority of Mets games via the secondary markets.
Top of Page Bottom of Page PermalinkFull Name: 19.5 Degrees
The things that you might end
The things that you might end up dying from are the things that scare me the most about dynamic pricing. If implemented in more segments of the market place, one might see frozen holiday turkeys being sold at $0.79 a pound most of the year and when demand is high, being priced at $4.50 a lb.<<<
When there's a hurricane and stores jack up the prices of essential goods and services by 20x it's called "gouging", yet when this sort of model emerges as being the "new normal" throughout a range of all circumstances, it's then called "dynamic pricing"?
Are you not weary that "dynamic pricing" in discretionary markets will serve as a slipperly slope (or institutional "stepping stone") to apply to all transactions?
Top of Page Bottom of Page PermalinkFull Name: nebulous nelly
> If implemented in more
> If implemented in more segments of the market place, one might see frozen holiday turkeys being sold at $0.79 a pound most of the year and when demand is high, being priced at $4.50 a lb<
Isn't this just basic supply vs demand?
Top of Page Bottom of Page PermalinkFull Name: Hitchhiker awaiting "true call"
Real estate
Real estate
Top of Page Bottom of Page PermalinkFull Name: skifurthur
Are you not weary that
That is exactly what I am worried about. I do not think dynamic pricing is a good idea anytime.
Not really. The supply doesn't change. The price change is dictated by demand alone.
Top of Page Bottom of Page PermalinkFull Name: nebulous nelly
^not in the example that face
^not in the example that face suggested, and seems concerned about.
**> If implemented in more segments of the market place, one might see frozen holiday turkeys being sold at $0.79 a pound most of the year and when demand is high, being priced at $4.50<**
Top of Page Bottom of Page PermalinkFull Name: the new, new mighty Quinn
>Isn't this just basic supply
>Isn't this just basic supply vs demand?
>>Not really. The supply doesn't change. The price change is dictated by demand alone.
I disagree with Tony about this detail, yes it is basic supply v demand. With supply limited, the seller should be trying to maximize profit by finding the "right" price. In high demand situations raise the price, if low demand drop the price.
I have season tickets for Stanford football and have watched this pricing concept evolve. I'm convinced there are business and econ professors plotting strategy for the athletic dept and writing papers about it later. When I started buying tickets they all had a price, which was different for each game depending on the expected demand. Now there isn't even a face value on my ticket, all I know is I paid an average of about $60. If I want to sell it I don't know what I paid, and the official asking price changes with demand. So far this season they've announced one sale on an underselling upcoming game (the stupid Friday night game), and announced price increases for the remaining Notre Dame tix.
For music, I have one friend who likes to try her luck walking up right before the show. Those few unsold good seats might be offered at half face or less (this is at Shoreline). She'll brag about this a couple times a year.
>>dynamic pricing is a one way street. I foresee the bad movies being 2 dollars cheaper and the good movies being 20 dollars more expensive.
for movies I think I agree with this, unfortunately.