AMC Cinema in Latest York.
Scott Mill | CNBC
AMC Entertainment abandoned plans to charge customers variable prices for cinema seats.
The corporate announced its “Sightline” pricing strategy in February and tested it in chosen locations in three US markets. The show charged viewers more for the very best seats within the theater or “Preferred Sight Line” seats.
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As a part of this system, the costs of seats considered less attractive to viewers, equivalent to in the primary rows of cinemas, were also lowered.
The shift comes because the movie industry suffers from a sluggish summer blockbuster season. And cinemas are counting on the releases of “Barbie” and “Oppenheimer” this weekend to attract much-needed traffic to theaters.
AMC Entertainment shares fell lower than 1% on Thursday. The stock is up more than 5% this 12 months, lagging behind the broader market.
Preferred Sightline Seating included chosen locations in the course of the audience, that are favored by some moviegoers, while Value Sightline seats are those typically present in the front row.
Chain said this system will end at participating locations in the approaching weeks.
The choice got here after a pilot program showed that viewers weren’t inquisitive about a front-row seat or had none in any respect, though prices had been lowered. The corporate also said that the majority moviegoers proceed to select their preferred seats, even at higher prices.
The corporate added that the most important objective is to make sure that AMC’s ticket prices are competitive. Other cinema chains, equivalent to Regal, don’t charge higher prices for better seats.
The theater chain said it’s going to now deal with testing front-row seating with more comfortable reclining seats in select locations across the US later this 12 months.
CNBC contacted AMC for additional comment.