According to Quartz, the way cinemas think about movie ticket pricing is almost revolutionary. After movie ticket prices stagnated for decades, the first market leaders have discovered the system of dynamic pricing. Consequently, they aim to give movie-goers more flexibility when visiting the theaters. Dynamic pricing means to adjusting the price of tickets according to demand and time of a movie. Hence, low-demand movies and movies at off-peak times will have more attractive prices in the future. As a result, they attract visitors that want to spend less money on tickets. This balances out the load factor of theaters.
Increasing video-streaming platforms and other movie-offering services are challenging cinemas. As a result, they are forced to rethink their business model in order to stay competitive. Also, it is important to give visitors some extra value. A dynamic pricing strategy can attract more customers that previously rejected to go to theaters to watch their movies. Furthermore, upcoming additional services like serving drinks and snacks are aiming to get back lost customers.
The current period is very exciting for Smart Pricer, as we are the leading provider for dynamic pricing models in the cinema industry and experience the change first hand.
Read the full article from Quartz here.
White Paper: German Movie Ticket Prices Study
In our white paper we review the development of attendance, ticket revenue and movie ticket prices in cinemas over the last years. We examine the pricing models of top German chains and look at the pricing innovations that may shape the next years.
- Pricing innovations allow visitors more choice in product and price for a specific show
- The current static pricing creates inefficiencies, does not consider true demand
- The megatrend of dynamic pricing is the next frontier for cinema pricing