When I go to the movies, like many others, I make sure to choose a seat close to the middle, for the best view. But this past monday, AMC Theatres announced they will begin setting their ticket prices based on where their customers choose to sit in the auditorium. This new policy means that middle seats will cost more than front row seats, according to NPR.
NPR also stated that under this new policy, front row seats are considered Value Sightline seats and cost less, while seats in the middle are called Preferred Sightline and will cost more. The remaining seats are Standard Sightline seats and will be the price of a standard admission ticker. By the end of this year, the new policy will be enacted in all US locations. But for now it’s rolling out in NY, Chicago, and Kansas City this weekend, according to The Guardian.
The new ticket policy is in light of the movie theaters’ struggle to compete with streaming services and to overcome pandemic-era aversion to large, indoor spaces. The amount of movies having theatrical releases has dropped, in the first three quarters of 2022, AMC lost nearly $700 million. In 2021 they lost $1.27 billion and $4.6 billion in 2020, as reported by NPR.
Barak Orbach, a professor of law and business at the University of Arizona says, “The reality of movie theaters in the United States is that the overwhelming majority of shows are more than half empty. So, unless it’s a blockbuster movie’s opening weekend and theaters are packed, a lot of people will just buy a less expensive ticket and then move to a higher priced seat.” A lot of moviegoers have expressed their unhappiness with the news, one Twitter user posted a photo of an empty theater and wrote, “AMC theaters after people refuse to pay for premium seating and $20 for popcorn and a drink.”
However, there are a couple ways to avoid this system. Customers who are a part of AMC Stubs A-List loyalty program won’t be charged extra for sitting in the Preferred Sightline section and if they choose a Value Sightline seat, they’ll receive a discount. On Discount Tuesdays, where all seats are five dollars, Sightline will not be in effect, according to Yahoo.
Post-Covid AMC has been struggling to get customers to return to the theaters, and this new move is an attempt to try and increase sales, but it could have the opposite effect. Orbach told NPR, “When pricing conflicts with perceptions of fairness, people are less willing to pay them.” People will become more inclined to just stay home and use streaming services to watch movies.
