Regal Cinemas to Introduce Dynamic Pricing for Movies

regaldynamic

With MoviePass recently shaking up the movie industry by offering unlimited movie tickets for the insane price of just $9.95 a month, there is a lot of concern right now about what the long-term effect of this deal might be. AMC has been actively trying to opt out of the program due to concerns that it is “shaky and unsustainable” and many others are worried that it will erode the perceived value of the theatrical experience, eventually forcing theatres to drop their prices. This week Regal Entertainment Group has announced that they will attempt to adapt by testing out dynamic ticket pricing in select markets in early 2018. If it succeeds, this could indeed be a game changer for the industry. Regal CEO Amy Miles had this to say:


“This test could be the first step towards a pricing model that drives incremental revenue in peak periods and incremental attendance in non-peak periods… 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.”

It’s not the first time we’ve heard people talk about demand-based pricing for movies. Back in 2012, media analyst Todd Juenger suggested that the movie industry had the “largest amount of excess capacity of any industry we could find in the free world” (referring to the fact that 93% of all theatre seats go unfilled). Of course, we’re not just talking about offering cheaper prices during matinees and weekday evenings (which many theatres already do) but also discounting ticket prices for smaller movies or movies that are underperforming at the box office. Unfortunately, that also means that ticket prices for big blockbusters will likely go up. Do you think demand-based pricing would be a good thing for consumers and for the movie industry overall?

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  • Colin

    Didn’t Frankie suggest this years ago?

  • Fletcher Thomas

    Game changer.

  • Lori Cerny

    Dynamic Pricing would be a horrible idea for parents – who often only have weekends to take the kiddies to a movie. Good news for elderly, but they already get discounts.

    As for me, Movie Pass didn’t get my butt to the theater, so nothing else will, ether. Cinemas are dead.

  • MoviePass doesn’t offer unlimited movies. From their TOS:

    MoviePass reserves the right to offer members a new price option if they exceed watching a certain amount of movies per month.