The world’s largest cinema chain, AMC Entertainment Holdings Inc, hasdecided to forgo its plans to modify pricesfor different theater seating. Earlier this year, thecompany announced that it would implement a pricing tier listcalled Sightline, which would charge moviegoers more or less based on the seating arrangement.
For screenings after 4 p.m., the Sightline initiative would charge middle and back-row seats a higher price while discounting seats located near side aisles and in the front row. This initiative hoped to incentivize moviegoers who wished to have a better cinema viewing experience to pay extra for a desirable seat. However, after several trial audiences, reports showed that moviegoers weren’t willing to pay extra for better viewing nor were motivated to buy discount prices.
As a result of the pandemic, high economic inflation, and the recent popularization of streaming platforms, theaters have struggled to encourage audiences to spend the extra dollars to travel and sit in a theater. Bloomberg Intelligence researchers have estimated this year’s annual revenue at $9 billion for North American theaters. This report is significant because it shows the destructive impact of the COVID-19 pandemic on the industry. The box office average revenue pre-pandemic was about $11 billion annually. According toindustry insiders, around 49% of pre-pandemic moviegoers have stopped going to theaters. Poor quality films likeThe Flashhave also discouraged moviegoers from purchasing tickets.
Related:The Flash Total Domestic Box Office is a Bigger Disaster Than Ryan Reynolds' Green Lantern
AMC Is Holding Strong in Uncertain Times
AMC Chief Executive Adam Aron claims that the company is unmatched among competitors in its efforts to boost ticket sales and that most theaters charge the same price for all seats. Aron has done significant work to keep the company afloat, like expanding the number of retail investors and creating AMC non-fungible tokens (NFTs). His efforts seem to work, as AMC stock has increased 6.4% this year. Social media has also propelled AMC’s popularity with the satirization of the 2021 AMC commercial starring acclaimed actressNicole Kidman. Despite the Sightline roll-back, AMC is set to begin a new project in select U.S. theaters with recliner front-row seats.
With the popularity of Greta Gerwig’sBarbieand Christoper Nolan’sOppenheimer, theaters expect an increase in audience turnout. However, with the ongoing WGA and SAG-AFRTA strikes, it is unclear how long audiences will continue to visit theaters if the quality of films begins to decrease.
So far, 2023 has not been the big return of cinema that everyone expected following the end of the Covid pandemic. Superhero movies have done okay for Marvel Studios, but dismally for Warner Bros. Discovery and their DC output. Elsewhere, low-budget horror movies have been raking in huge profits, but not the kind of footfall that cinemas really need from the big blockbusters that are just not delivering as they should. While there are still some big movies coming later this year, it is still a tricky time for cinemas in general.
