ST. LOUIS (KMOX) – Paying more to see a box office hit and less for a B-list movie — it’s a strategy Regal Cinemas will soon be implementing, dumping the one-price-for-all standard.
Regal Entertainment Group is testing demand-based pricing for films, potentially leading to higher prices for top hits and low prices for flops, reports Bloomberg News.
Working with app-maker Atom Tickets, Regal plans to test the concept early next year, seeing if it boosts revenue and fills more seats at non-peak times.
“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.
It’s been an uphill battle for movie theaters, with more people staying at home to watch streaming services like Netflix, and studios pushing to make 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, down to $716 million, Bloomberg reports. Regal shares have slumped 21 percent this year. AMC Entertainment Holdings Inc. – No. 1 – has tumbled 58 percent.
There are three Regal theaters in the St. Louis area: Hazelwood, Fenton and O’Fallon.
Industry executives are debating whether dynamic pricing will increase attendance. What do you think?