Regal Entertainment Group is testing demand-based pricing for films, potentially leading to higher prices for top hits and low prices for flops, a big change for an industry that typically uses a one-size-fits-all approach.
Working with app maker Atom Tickets LLC, which has lobbied theaters to try dynamic pricing, Regal plans to test the concept in early 2018 and see if it boosts revenue and fills more seats at non-peak times.
"Changes to the historical pricing structure have often been discussed but rarely tested in our industry, and we're excited to learn even more about how pricing changes impact customer behavior," Amy Miles, chief executive officer of the Knoxville, Tennessee-based exhibitor, said Tuesday on a call with analysts.
Shares of cinema chains have been pummeled by falling attendance and threats to the traditional Hollywood movie model, with more people staying home to watch streaming services like
Netflix Inc. Studios, also hurting, have been pushing to make new movies available in homes sooner -- cutting the window of exclusivity that theaters enjoy.