AMC Entertainment Holdings Inc. is dropping a plan to charge more for the best theater seats after moviegoers showed little interest during a test.
The world’s largest cinema chain, which said in February it would expand its tiered-pricing structure to theaters in the US and Canada, is ceasing all promotion tied to the initiative called Sightline, according to people familiar with the matter.
The test didn’t deliver added revenue as hoped, said the people, who asked not to be identified discussing the trial. It suggested that, unlike concert tickets or sporting events, movie fans aren’t willing to pay up for the best view or get front row seats for less.
AMC declined to comment.
With Sightline, AMC Chief Executive Officer Adam Aron was trying to break with industry convention as the industry struggled to return to pre-pandemic sales levels.
Under the plan, the company charged more for mid-aisle seats located in the center of the theater and less for undesirable spots, like in the front row. The initiative applied only to movie screenings after 4 p.m.
Aron has tried a variety of initiatives to prop up AMC after the pandemic brought the company to the brink of financial ruin. He’s raised additional funds, engaged retail investors on social media and even offered nonfungible tokens.
The industry’s recovery from the pandemic has been complicated by sluggish box-office results from a number of big-budget releases including The Flash and Indiana Jones and the Dial of Destiny. Bloomberg Intelligence analysts downgraded their predictions for the North American theater industry’s revenue to about $9 billion this year as a result. Before the pandemic, the box office regularly topped $11 billion annually.
