Get the Batmobile out of the garage...
If you want to see Robert Pattinson in tights on opening night, you may have to pay a premium. AMC is experimenting with a new pricing approach by boosting the price of popular films such as Warner Bros." "The Batman" (hits theaters Friday).
Ticket prices are around a buck higher in LA and NYC, but that hasn't deterred demand:
Expectations are high: "The Batman" is on track to be the year's first blockbuster, with a global opening of $245 million or more, which comes at a good time for theater chains like AMC.
Shift in strategy...
Some studios have adopted a new technique to contact viewers at home during the pandemic (think: same-day streaming releases).
"Dune," a Warner Bros. film, grossed $400 million worldwide.
Other day-and-date releases from the studio, such as "In the Heights" and "Matrix 4," however, flopped on the big screen.
With ticket sales in North America remaining 60 percent down than pre-Covid levels, theater chains are going creative:
Reclinable seats, contactless concessions, and 4D experiences are just a few of the ways theaters are luring customers back.
The premium feel could be enhanced by more expensive seats for major studio tentpole screenings.
AMC already charges European theatergoers a premium for premium seats (think: middle, not too close).
Movie tickets are becoming more "premiumized"...
Movie tickets are notoriously consistent: a $200 million Marvel blockbuster will cost the same as a $2 million indie film. Dynamic pricing has been around for a long time. Other businesses, such as flights, hotels, and concerts, have adopted the idea. High demand equals higher cost, whether you're reserving a last-minute red-eye or front-row seats to a J. Biebs concert. However, increasing ticket costs could hurt attendance at a time when theaters are struggling to fill seats.