American cinemas’ new pricing plans could be the source of high drama

A little while ago I went to the cinema in Washington for the first time.

It was a practice I had got out of, initially due to the pandemic and more recently probably due to the easier access to streaming services.

It was a late Friday afternoon and the place was empty. I could have taken any seat I wanted.

It may not be possible to do that in the future as AMC, the largest cinema operator in the United States, last week announced a new system of tiered pricing for tickets, with punters having to pay more to sit in more popular seats.

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AMC Theatres says this will be just like the system operating at sporting events and concerts.

The cheapest seats in the cinema will be those closest to the screen. Seats in the middle will be the most expensive.

The company says most seats will be designated as “standard” and will stay at the current price.

The new pricing structure, which goes under the logo of “sightline” , will apply at film showings after 4pm. Cinemagoers will be able to view a map in the foyer as well as in an app to see prices for particular seats. Those who are part of the company’s loyalty programme will be exempt from the new arrangements.

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The new tiered pricing structure is being introduced initially in the big cinema markets such as New York and Chicago. If there is no backlash, it is likely to be rolled out elsewhere by the end of the year.

AMC, in its announcement, did not set out the actual prices for seats under the new structures

However, the New York Times said for one screening in Manhattan, where the new arrangements came into effect almost immediately, seats at the front were being sold with a discount of $2 (€1.88).

Those deemed to be “preferred sightline seats” – those in the middle of the four rear rows – were $1 more expensive.

The Hollywood Report said that at AMC Lincoln Square 13 in New York, one of the busiest cinemas in the country, a ticket for a regular evening showing of the film Magic Mike’s Last Dancelast week cost $17.99. A preferred seat costs $19.99 when accounting for the $2 surcharge.

Elsewhere in the US going to the cinema can be much cheaper. At an AMC cinema in Kansas City, for example, a ticket for a comparable showing of the same film cost $11.29. A preferred seat cost $12.29 after the $1 surcharge.

However, filmgoers can face additional “convenience fees” and taxes on top of the ticket price.

AMC said: “We know there are some moviegoers who prioritise their specific seat and others who prioritise value moviegoing. ‘Sightline’ at AMC accommodates both sentiments to help ensure that our guests have more control over their experience, so that every trip to an AMC is a great one.”

Not everyone is a fan of the new pricing concept.

Lord of the Rings actor Elijah Wood said the new structure would benefit the better off.

“The movie theatre is and always has been a sacred democratic space for all, and this new initiative by @AMCTheatres would essentially penalize people for lower income and reward for higher income,” he wrote on Twitter.

The cinema business has been facing difficult financial times as a result of shutdowns during Covid and greater competition from streaming services.

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Last September, the British cinema chain Cineworld filed for Chapter 11 bankruptcy in the US. Dynamic pricing has been part of the business for some years, including lower price for afternoon showings and sometimes even higher prices for some more popular films.

But it remains to be seen how filmgoers react to the new price structures.

It comes at a time when the Biden administration is putting pressure on US businesses over practices aimed at squeezing more money out of the paying public.

Joe Biden in his state of the union address to Congress hit out at additional charges levied by airlines for families to sit together on aeroplanes, “resort” fees sought by hotels on top of their existing bills even when they are not “resorts”, and cable, internet and mobile phone companies looking for payments of $200 or more from customers who want to switch providers.

“Americans are tired of being played for suckers,” Biden said, announcing plans to legislate against such practices.