AMC CEO Adam Aaron has been been running the company since 2015. AMC has been in a lot of interesting headlines in the last few years with this one continuing the streak. Deadline is reporting that AMC CEO is experimenting with variable pricing with some films.
“Currently, our prices for The Batman are slightly higher than the prices we are charging for other movies playing in the same theaters at the same time,”
“This is all quite novel in the United States, but actually AMC has been doing it for years in our European theaters. Indeed, in Europe we charge a premium for the best seats in the house — as do just about all sellers of tickets in other industries — take sports events, concerts and live theater, for example.” Aron sees “considerable upside opportunity ahead if we continue to be imaginative” on pricing.
As an AMC stockholder, this is what I want to hear. AMC has been in a slump in recent years and was on the verge of shutting down. My theory is that the pandemic actually saved the company when reddit decided to pump AMC stock. Variable pricing may be a step in keeping the doors open. The increased ticket prices are one of many ways that the company plans to reimagine its business. AMC’s CFO Sean Goodman shared the following:
“We are going to look at candidates to diversify our risks away from pure movie theaters, to capitalize on our knowledge of food and beverage, of entertainment, of selling tickets to things, of running buildings that are far apart from each other, dealing with landlords with hundreds and hundreds of leases — this is all experience that AMC has that is needed in other industries too.”
It’s an interesting fact that AMC theaters likely has a ton of real estate experience. This could be the beginning of something awesome, or something awful. Let’s see how this plays out…
That’s all I have for this one..