AMC Abandons Controversial Pricing Model for Movie Seats, Focuses on Premium Experiences
AMC Entertainment, the largest theater chain in the world, announced on Thursday that it will no longer pursue its divisive pricing strategy known as Sightline. The initiative aimed to introduce tiered pricing for movie seats, breaking away from the traditional practice of charging the same amount for any seat in a theater. However, after facing significant backlash and minimal success, the company decided to pivot away from the concept.
Under the Sightline model, evening screenings featured three tiers of pricing. Front-row seats, which often go unsold, received discounts of $1 to $2. Center-middle seats were subject to price increases of $1 to $2, while the rest of the seats maintained the existing pricing structure. The concept was introduced as a test in theaters located in New York, Illinois, and Kansas in March.
The experiment faced strong opposition from moviegoers, leading AMC to label it as a test from the beginning. Responding to public outcry, the company has now confirmed that the Sightline initiative will come to an end sometime in August. However, AMC plans to introduce a new trial involving front-row seats later this year.
Seeking to enhance the moviegoing experience, AMC aims to remove traditional front-row seats and replace them with large, comfortable, lounge-style seating areas that allow guests to recline fully. This move reflects the company’s commitment to providing an enjoyable and luxurious atmosphere for its patrons.
The decision to abandon the pricing model is part of AMC’s broader strategy to focus on seat sales as a revenue driver. Facing the challenges posed by the pandemic, AMC and other theater chains have shifted their attention to seat pricing, particularly for premium screenings featuring larger screens or advanced sound systems.
The pandemic-induced theater closures and a subsequent slow recovery in attendance have further intensified the need for innovative approaches to attract moviegoers. Ticket sales in 2021 remain approximately 20 percent lower than the same period in 2019, highlighting the ongoing difficulties faced by the industry.
According to AMC, the Sightline initiative did not deliver the desired results. Despite price reductions for front-row seats, there was little to no increase in attendance for this section. However, approximately 75 percent of customers who previously occupied center-middle seats were willing to pay the surcharge to maintain their preferred spots, leading to the continued implementation of higher prices for those seats. Some moviegoers resorted to changing their seating preferences, while a small percentage decided to stop purchasing tickets from AMC altogether.
Interestingly, AMC’s competitors did not follow suit in re-pricing their seats, making the company less competitive in the test markets. This lack of industry-wide adoption likely influenced AMC’s decision to discontinue the initiative.
News of AMC’s decision to abandon the Sightline pricing model was first reported by Bloomberg News, shedding light on the company’s evolving strategies in response to changing consumer demands and market dynamics.