AMC Theatres recently announced that it is abandoning its “Sightline” pricing strategy, which charged different prices for seats in different locations within each theater. The plan was first announced in February and involved charging higher prices for the best seats in each theater and lower prices for seats at the very front of the auditoriums.
The company has stated that it will end the pilot program in the coming weeks and replace it with a new program that aims to upgrade the seats at the front of each auditorium, an area that is often considered to provide the worst viewing experience. AMC plans to introduce large, comfortable lounge-style seating areas that will allow guests to recline and relax. The angle of the seats will also make it more enjoyable to watch movies from these front row seats closest to the screen. This new seating concept will be tested starting in late 2023.
Pricing for the new seats has not been announced yet, but AMC noted that in the Sightline pilot program, most consumers were willing to pay more for the premium seats. Surprisingly, there was little to no change in the popularity of the front row seats, even with their lower price.
AMC’s decision to pivot away from the Sightline program is driven by the desire to ensure its ticket prices remain competitive. While the Sightline plan brought movie theater tickets in line with other forms of entertainment, such as concerts, sporting events, or plays, which charge different prices depending on the seat, it marked a departure from how movie tickets have traditionally been sold.
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Historically, theaters have offered cheaper tickets for matinees or other time-based showings but have typically avoided charging patrons different prices to see the same movie in the same auditorium at the same time. The Sightline program aimed to change this by introducing seat-specific pricing, but it seems that consumer behavior did not align with this new approach.
It is worth noting that the decision to end the Sightline program and improve the front row seating experience does not necessarily mean that all theaters will follow suit. Each theater chain has its own pricing strategies and approaches to seat placement and comfort.
The move to upgrade the front row seating experience aligns with a broader trend in the movie industry. Theaters have been investing in technologies and amenities to enhance the overall moviegoing experience and entice audiences back to cinemas. This includes innovations such as reclining seats, premium food and beverage options, and immersive formats like IMAX and Dolby Cinema.
By focusing on improving the front row seating experience, AMC aims to provide a more comfortable and enjoyable viewing experience for its guests. The company is aware of the importance of keeping ticket prices competitive, and it will be interesting to see how they price these upgraded seats in comparison to other seating options within the theater.
In conclusion, AMC Theatres has decided to abandon its Sightline pricing strategy, which charged different prices for seats in different locations within each theater. The company plans to upgrade the front row seating experience by introducing large, comfortable lounge-style seating areas. This move aligns with the industry trend of enhancing the moviegoing experience. AMC aims to provide a more enjoyable viewing experience while also ensuring competitive ticket prices. It remains to be seen how the market will respond to this new seating concept and pricing strategy.
