Cinema – Our Pricing Solutions
Our Dynamic Pricing solutions help cinemas optimize their pricing to increase revenues and profits.
Pricing Challenges And Goals For Cinemas
Discover the demand for each movie in your theater and set up the right pricing strategy for your theaters and movies.
Challenges for Cinemas
Attendance loss for younger audience
Online streaming services and changing consumer behavior leads to attendance loss for younger audiences in many cinemas. Attractive prices and bundles attract those audience again.
High demand vs. low demand times
Weekends and evenings attract more movie-goers than weekdays and midday. Attractive and dynamic prices shift demand to off-times and increase revenue on peak-times
Competition from third party subscription provider
Implement your own dynamic pricing strategy to keep your independency from third party providers and collect own visitor data.
Average ticket price impact per show with revenue simulation tool
Pricing Goals for Cinemas
Drive Revenues
Utilize the price insensivity of spontaneous and solvent customers for high-demand movies to increase overall revenue.
Increase visits at off-peak times
Offer attractive prices at off-peak times to shift demand and reduce the impact of fixed costs at those times.
Incentivize online sales
Increase online sales through special discounts to collect more customer behavior information and get better planing security while saving money.
How We Can Help You Achieve Your Goals
To achieve the strategic goals of our clients we usually follow three steps:
1
Pricing Analysis and Scoping
- Analysis of demand and price structure with cinema Analytix Tool
- Simulation of prices and revenue impact
- Scoping of interfaces with ticketing system and website provider
2
Development of Interface & Communication Support
- Calibrate Cinema Dynamix Tool based on historic data
- Develop and test interfaces to ensure ease of use for online and box-office customers
- Share best practices for online and offline price communication
3
Launch of Real-Time Dynamic Pricing
- Automatic price updates with Dynamix Tool
- Continuous support
- Access to customized web-tool to change price settings and real-time reporting (if desired)
Typical Results For Cinemas
+5% - 15%
Increase in attendance during off-peak times
+5% - 10%
Increase in overall revenue
+5% - 10%
Increase in share of online sales
What Our Clients Say
“Our initial applications of Smart Pricer’s software have had very positive results. We plan to expand our use of their dynamic pricing technology.”
Ian Sheperd
“By examining our current pricing scheme in combination with data analytics, Smart Pricer delivered enlightening insights to applicable pricing improvements. After going live with Smart Pricer’s dynamic pricing solution at our Cinema Park theatres the first results are really impressive.”
Roman Linin
“Smart Pricer’s software has increased our revenues significantly. We are pleased that our guests accept the new pricing model.”
Jens Heinze
FAQ – Answers to Your Questions
What are the expenses for theatre operators implementing dynamic pricing?
The costs vary based on the scale of the dynamic pricing roll-out. Revenue uplifts are typically 5x – 10x higher than the cost of implementation.
How do distributors react to dynamic pricing?
As long as ticket discounts are modest and the overall average ticket price increases, distributors support dynamic pricing as they participate in revenue increases.
What efforts are required for implementing dynamic pricing?
Testing dynamic pricing at a few theatres is usually the first step before conducting a full roll-out at all theatres.
The test preparation typically takes 2 to 8 weeks depending on:
- The quality and speed of historic data delivery by the exhibitor
- The availability of resources for setting up the price update process
- The speed of adjusting customer communication and informing theater teams
For the live operation of dynamic pricing, efforts depend on the POS integration. This could either mean no effort is needed, meaning price updates are fully-automated or just 5 to 10 minutes per day for price updates to do be carried out by the local theater or central pricing team.
How do we communicate dynamic pricing in the cinema industry?
Communication is key for a successful introduction of dynamic pricing.
We propose to transparently communicate how customers can make a bargain, e.g. “Buy early for off-peak shows and save up to 3 EUR”.
How do you measure the revenue increase generated by dynamic pricing?
The revenue increases are measured by conducting A / B tests, i.e. we track the average ticket price and attendance development at theatres with dynamic pricing (test theatres) and compare them against comparable theatres without dynamic pricing (control theatres).
Why is dynamic pricing suitable for cinemas?
The combination of fixed capacity and variable demand, creates the perfect condition for dynamic pricing.
As price sensitivity for each show fluctuates depending on movie, weekday, time and several other factors; dynamic pricing can be used to drive attendance during off-peak times as well as slightly lift ticket prices during peak hours if desired.
Our Case Study
Discover how we introduce dynamic pricing with our clients.
German Cinema Pricing
In this white paper 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.
- 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
Upcoming Conferences And Events
Find us and come say hello at these industry events, fairs, and conferences:
NATO Fall Summit
October 08-11, 2018
Los Angeles, USA
Annual governance meetings for the North American Theater Organization to review issues and the focus of NATO’s activities, plus multiple studios presentations and informative sessions. Meet us at the Summit!
UNIC
October 15-16, 2018
Brussels, Belgium
Each year in Brussels, the UNIC Cinema Days welcome an exclusive group of senior executives and key figures from across the European and international cinema landscape for an exciting two days of debates, workshops and social activities.
Show East
October 22-25, 2018
Miami, USA
ShowEast continues to bring executives together from across the country with one goal in mind – Create the best movie experience possible!.
Cine Asia
December 10-13, 2018
Hong Kong, China
Now in the 24th year, CineAsia continues to be the best and most effective way to network and do business with the motion picture industry in the APAC region.
How Can We Help You?
Let's talk about how we can achieve your goals.
Leave us a message to schedule a first free consultation about your needs and goals. We are happy to hear from you. Or just give us a call, send us an email, or stop by at our office in the heart of Berlin.
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