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» Film-Tech Forum   » Operations   » Ground Level   » Regal proposes FLOP pricing (Page 1)

 
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Author Topic: Regal proposes FLOP pricing
Rusty Gordon
Film Handler

Posts: 32
From: Fairview, Tennessee USA
Registered: Feb 2004


 - posted 10-25-2017 01:13 PM      Profile for Rusty Gordon   Author's Homepage   Email Rusty Gordon   Send New Private Message       Edit/Delete Post 
Here in Nashville Regal added recliners and jacked prices up to $18 from $11 virtually overnight. These reclinervision houses are pricing themselves out of habitual moviegoing. No longer will kids be able to afford to see "whatever" and attendance is in decline of their own making. Now they're starting to see the error of their ways. Not every movie is worth $18. Kids want to sit with their friends at the movies and reserved seating is an obstacle to that as well. While these chains bankrupt themselves with 45 seat recliner houses, independents will have an opportunity to serve the masses and keep habitual moviegoing alive.

Regal Cinemas Plan May Let You Pay Less for Flops, More for Hits

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Stephan Shelley
Jedi Master Film Handler

Posts: 700
From: castro valley, CA, usa
Registered: Nov 2014


 - posted 10-25-2017 02:03 PM      Profile for Stephan Shelley   Email Stephan Shelley   Send New Private Message       Edit/Delete Post 
Here in the San Francisco Bay Area where there is a lot of competition, multiplexes that have converted to luxury seating while dropping there seating capacity in half have doubled there grosses do to increased prices. However in more rural areas the opposite. The folks there do not like the increase in price.

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Harold Hallikainen
Jedi Master Film Handler

Posts: 763
From: Denver, CO, USA
Registered: Aug 2009


 - posted 10-25-2017 02:04 PM      Profile for Harold Hallikainen   Author's Homepage   Email Harold Hallikainen   Send New Private Message       Edit/Delete Post 
The demand pricing is interesting. They could do something like airlines where you can book early and get a low price, book later and get a higher prices as the tickets sell out, and finally sell standby seats at the end in case people do not show up (but don't overbook and haul people out of the theater). Another simple approach to demand pricing would be to just start with a high price the first week, then drop it each week thereafter.

Harold

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Buck Wilson
Jedi Master Film Handler

Posts: 863
From: St. Joseph MO, USA
Registered: Sep 2010


 - posted 10-25-2017 02:24 PM      Profile for Buck Wilson   Email Buck Wilson   Send New Private Message       Edit/Delete Post 
Regal is too pretentious for their own good. They've raised the ticket price at my dumpy 10 plex 20 cents or more every 6 months in the 5 years since they bought us.

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Martin McCaffery
Film God

Posts: 2353
From: Montgomery, AL
Registered: Jun 99


 - posted 10-25-2017 02:25 PM      Profile for Martin McCaffery   Author's Homepage   Email Martin McCaffery   Send New Private Message       Edit/Delete Post 
All of this assumes sellouts. Based on grosses I see at the multiplexes here a really big film may sell out one or two shows (out of, let's say the 24 a day one multi had for the latest Madea movie), but the rest of the run is pretty sparse.

I know I don't represent the viewing public, but how many movies are there that people would pay a premium to see in the first week?

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Marcel Birgelen
Film God

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From: Maastricht, Limburg, Netherlands
Registered: Feb 2012


 - posted 10-25-2017 02:57 PM      Profile for Marcel Birgelen   Email Marcel Birgelen   Send New Private Message       Edit/Delete Post 
quote: Harold Hallikainen
The demand pricing is interesting. They could do something like airlines where you can book early and get a low price, book later and get a higher prices as the tickets sell out, and finally sell standby seats at the end in case people do not show up (but don't overbook and haul people out of the theater). Another simple approach to demand pricing would be to just start with a high price the first week, then drop it each week thereafter.
Personally, I would hate this approach...

You know why? Flying in a pressurized tin can with wings, while getting myself groped and having to watch other people's luggage spinning around in front of me for an hour, never knowing if they didn't sell YOUR seat to somebody else who paid a few dimes more... it is a necessity to get from A to B in a reasonably acceptable time frame, it's not something I'd consider the fun part of any given journey.

Going out to see a movie is something I'd still consider something I'd do for fun. So, pretty please. Let's not try to import the bad aspects of your average flying experience. [Wink]

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Harold Hallikainen
Jedi Master Film Handler

Posts: 763
From: Denver, CO, USA
Registered: Aug 2009


 - posted 10-25-2017 03:09 PM      Profile for Harold Hallikainen   Author's Homepage   Email Harold Hallikainen   Send New Private Message       Edit/Delete Post 
I agree that airlines are not a great model! Demand pricing is an economist's dream, though. We see it in lots of stuff.

Harold

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Brad Miller
Administrator

Posts: 17687
From: Plano, TX (36.2 miles NW of Rockwall)
Registered: May 99


 - posted 10-25-2017 03:30 PM      Profile for Brad Miller   Author's Homepage   Email Brad Miller       Edit/Delete Post 
Rusty - the site rules require you post the text of any article you link to. Please edit your post to include this. You can use the "quote" button on the edit screen to paste it in.

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Dennis Benjamin
Phenomenal Film Handler

Posts: 1425
From: Denton, MD
Registered: Feb 2002


 - posted 10-25-2017 10:31 PM      Profile for Dennis Benjamin   Author's Homepage   Email Dennis Benjamin   Send New Private Message       Edit/Delete Post 
Our company is installing luxury powered recliners in our locations and not raising our ticket prices. So....

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Rusty Gordon
Film Handler

Posts: 32
From: Fairview, Tennessee USA
Registered: Feb 2004


 - posted 10-25-2017 10:39 PM      Profile for Rusty Gordon   Author's Homepage   Email Rusty Gordon   Send New Private Message       Edit/Delete Post 
Brad, the system said the time limit to edit the message was exceeded. Here is the text of the article.

Regal Cinemas Plan May Let You Pay Less for Flops, More for Hits
More stories by Anousha SakouiOctober 25, 2017, 6:02 AM CDT
Regal Entertainment Group is testing demand-based pricing for films, potentially leading to higher prices for top hits and low prices for flops, a big change for an industry that typically uses a one-size-fits-all approach.

Working with app maker Atom Tickets LLC, which has lobbied theaters to try dynamic pricing, Regal plans to test the concept in early 2018 and see if it boosts revenue and fills more seats at non-peak times.

“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,” Amy Miles, chief executive officer of the Knoxville, Tennessee-based exhibitor, said Tuesday on a call with analysts.

Shares of cinema chains have been pummeled by falling attendance and threats to the traditional Hollywood movie model, with more people staying home to watch streaming services like Netflix Inc. Studios, also hurting, have been pushing to make new 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 to $716 million, attributing the decline to an underwhelming movie slate. Regal shares have slumped 21 percent this year. AMC Entertainment Holdings Inc., No. 1, has tumbled 58 percent.

Industry executives are debating whether dynamic pricing will increase attendance. Some object to a system that would involve charging higher prices for hit movies and lower prices for unpopular movies. Miles said Regal would conduct the tests in enough markets to be statistically significant and said the experience of Atom Tickets, which sells movie passes through its app, will be helpful.

“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. The company has already worked with Regal on services such as pre-ordering concessions.

Miles said Regal won’t consider sharing revenue with MoviePass, a controversial service that offers consumers once-a-day admission to theaters for less than $10 a month. MoviePass pays full price for tickets to theaters and therefore loses money on every subscription. The company said it plans to make up the difference through advertising revenue and by gaining a share of theater concession sales.

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Jesse Skeen
Phenomenal Film Handler

Posts: 1498
From: Sacramento, CA
Registered: Aug 2000


 - posted 10-26-2017 12:23 AM      Profile for Jesse Skeen   Email Jesse Skeen   Send New Private Message       Edit/Delete Post 
Why do people keep paying to see Madea movies? [Confused]

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Mike Blakesley
Film God

Posts: 12445
From: Forsyth, Montana
Registered: Jun 99


 - posted 10-26-2017 12:44 AM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
I felt the same way about Eddie Murphy movies....he really went down the tubes. Three or four classics followed by almost 100% crap since.

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Jack Ondracek
Film God

Posts: 2308
From: Port Orchard, WA, USA
Registered: Oct 2002


 - posted 10-26-2017 12:47 AM      Profile for Jack Ondracek   Author's Homepage   Email Jack Ondracek   Send New Private Message       Edit/Delete Post 
I'd like to know how a theatre can square variable pricing schemes with the terms of its master license.

Considering the part where terms are based on the highest established price for a given time and category, about the only way I can think of would be if you declared your ticket prices for a show before you ran it. I'm not sure you could change your prices mid-week, after you realized you had a dog on your hands.

... unless that rule changed while I wasn't looking.

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Scott Norwood
Film God

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From: Boston, MA. USA (1774.21 miles northeast of Dallas)
Registered: Jun 99


 - posted 10-26-2017 01:58 AM      Profile for Scott Norwood   Author's Homepage   Email Scott Norwood   Send New Private Message       Edit/Delete Post 
Wouldn't customers just take advantage of "dynamic pricing"? As in, if one theatre did this and another theatre across town had "normal" pricing, wouldn't customers just go to whichever theatre had lower prices for the movie that they wanted to see? In other words, one would go to te dynamic-pricing theatre to see Gigli and to the normally priced theatre to see Star Wars. Or would that make too much sense?

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Kenneth Wuepper
Jedi Master Film Handler

Posts: 996
From: Saginaw, MI, USA
Registered: Feb 2002


 - posted 10-26-2017 08:29 AM      Profile for Kenneth Wuepper   Email Kenneth Wuepper   Send New Private Message       Edit/Delete Post 
The problem is this: once the customer sees all of the other factors as unimportant, like quality and comfort or presentation, the only thing left is price. Someone willing to look at a movie on their phone would certainly see price as the only factor in going to a movie theater.

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