Pricing in the German cinema industry has matured during the last years. Various price surcharges and discounts give customers more choice in what they are willing to pay – however not all techniques are beneficial to customers and exhibitors.
Recent pricing innovations that are likely to spread throughout the German market over the coming years are discounts for online purchases, bundling of ticket and concession sales, installation of premium seats, offering up to four price categories for the same show and switching to true demand based dynamic pricing
2016 was a year with strong blockbusters like Rogue One: A Star Wars Story and Finding Dory which were filling the cinema halls. Even though it was not the best one in terms of attendance in Germany, exhibitors listed more than a billion Euro in annual revenue, which means a rise of 11.5% since 2010.
In this study we review the development of attendance, ticket revenue and ticket prices over the last years. We examine the pricing models of the top German chains and look at the pricing innovations that may shape the next years.
Abolishing reservations and giving online discounts
By giving discounts for tickets purchased online, cinemas can increase their online share. Unlike reservations, web purchases ensure revenue, reduce operational cost and allow cinemas to collect data.
Ticket and concession bundling
Bundling is beneficial for customers to purchase more. By offering bundles, cinemas simplify the purchasing experience for their customers and generate higher food and beverage revenues.
Launching Dynamic Pricing
Dynamic pricing allows the base price of films to adjust to the actual demand conditions, such as movie life cycle, show time, day of the week, and actual bookings.