AMC Entertainment has decided to abandon its plans to implement variable pricing for movie theater seats.
The company had introduced its “Sightline” pricing strategy in February, which was piloted in select locations across three U.S. markets.
This program charged higher prices for the best seats in the theater, designated as “Preferred Sightline” seats.
In addition, the program offered lower prices for less desirable seats, such as those in the front row.
This change comes as the movie theater industry faces a sluggish summer blockbuster season. Theaters are hoping that the upcoming releases of “Barbie” and “Oppenheimer” will help draw more audiences.
On Thursday, AMC Entertainment’s shares fell slightly, dropping less than 1%. Despite this, the stock has risen more than 5% this year, though it still trails behind the broader market.
Preferred Sightline seats were those located in the middle of the auditorium, favored by many moviegoers, while Value Sightline seats were typically situated in the front row.
AMC announced that the program will be phased out at participating locations over the coming weeks.
The decision follows findings from the pilot program, which revealed that moviegoers showed little interest in sitting in the front row, even with reduced prices.
The company also observed that most patrons continued to choose their preferred seats, despite the higher costs.
AMC stated that this change is intended to keep its ticket prices competitive. Other theater chains, such as Regal, have not implemented higher pricing for better seats.
Looking ahead, AMC plans to test front-row seating with more comfortable recliners at select U.S. locations later this year.
