Movie Theaters Are Considering A New Variable Price System

Despite the regularity of $1 billion hits and the record $11.9 billion domestic box office in 2018, times are still dire for movie theaters. This is especially evident after the soft performances of summer blockbusters as theaters across America are struggling to keep audiences interested in films beyond a handful of superhero and Disney stalwarts. Now, a report indicates that many chains and studios are considering a dynamic pricing model to entice audiences to see something besides “Spider-Man” and “The Lion King.”

Citing word from theater chains across the country, The Hollywood Reporter has stated that a switch to a variable price structure for different dates, times, or releases is gaining support in the industry. In theory, this approach would see tickets for guaranteed successes like “Avengers: Endgame” charge more than a smaller original comedy like “Stuber.”

"'Stuber' should not be the same price as 'Avengers: Endgame' or 'Star Wars,'" former Fox distribution executive Chris Aronson said. "It just shouldn't be."

Factoring into this decision is the popularity of discount Tuesdays at chains nationwide, which see ticket costs as low as $6 all day. Films, including “Stuber,” regularly see major upticks in business on Tuesdays, indicating a willingness in audiences to check out smaller releases for the right price. The initial success of MoviePass’s $10 a month plan, which possibly helped push 2018’s box office to record heights, is also being considered.

“That's the lesson of MoviePass — people will go to the movies more if price isn't an impediment,” Aronson said. “I worry that Netflix has come along with a very attractively priced entertainment package that theaters can't keep up with, except for the movies people absolutely want to see.”

There is, however, some very logical pushback to the idea of variable prices.

“When you charge a lower price, right there you are saying the movie isn't as good as another film,” Eric Handler, an analyst with MKM Partners. “You are saying you have to discount it in order for people to show up. I don't think that is something you will see anytime soon."