As if going to the movies wasn’t already pricey enough, Regal Entertainment Group announced this week that moviegoers could expect increased prices for tickets to certain flicks next year.
According to Bloomberg, Regal is considering employing demand-based pricing, meaning more popular films could cost more than less popular ones. Moviegoing would also be more expensive during peak hours and less expensive during less popular, midday times. The model would mimic demand-priced concerts and shows, as well as hotel and airline bookings.
"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," said Regal CEO Amy Miles.
Regal theaters would be the first to use such a model.
Box office earnings and stock in Regal and rival AMC Entertainment have decreased significantly as streaming services like Netflix and Hulu have continued to grow.
Some workers in the movie industry think the plan could get more people in theaters, especially during discounted nonpeak hours and the option to buy cheaper tickets to less popular movies.
According to Variety, testing for demand-based pricing will begin early next year at Regal theaters in several markets, but it's unclear which cities will be targeted first.
About the Author
