discounts on premium seating
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TORONTO — As audiences rush back to theaters to see “Avatar: The Way of Water” on expensive Imax screens, the head of Cineplex Inc. says he’s open to “experimenting” with cheaper tickets to some films, if they could lure back people who are staying at home.
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Chief Executive Ellis Jacob said Canada’s largest movie chain was considering “different prices for different types of products,” which included a rare discount on 80 For Brady tickets this month. The comedy is aimed squarely at seniors, a demographic that is reluctant to return to the cinema.
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“We want to accommodate our guests and we want to be priced right for the opportunity,” Jacob said Tuesday as Cineplex reported its fourth-quarter results.
Ticket pricing has come more of a focus for movie chains across North America as they try to turn a profit after years of staggered closures but keep audiences coming back in a battered economy with plenty of streaming alternatives.
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During the most recent quarter, Cineplex relied on premium Imax and UltraAVX tickets for the “Avatar” sequel and other blockbusters to offset a loss.
The company reported earnings of $10.2 million at the end of the calendar year, compared to a loss of $21.8 million at the end of 2021. Results were 16 cents per diluted share, or 34 cents per diluted share a year earlier.
Revenue was $350.1 million, up from $300 million last year.
The sequel “Avatar” and “Black Panther: Wakanda Forever” were bright spots during this period, which faced a drought of new films and box office admissions.
That gap was evident in viewership, which fell to 9.2 million customers from 10.2 million in the fourth quarter of 2021 as Spider-Man: No Way Home broke box office records.
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Concession receipts still hit a new high of $8.93 per person as moviegoers wolfed down more expensive snacks, while box office receipts hit a record $13.06 per person, fueled by those high-priced tickets.
While some movie-goers are willing to pay for pricier nights, Jacob said lowering ticket prices might make sense in other cases, although it would depend on the Hollywood title.
In the case of 80 For Brady, which opened Feb. 3, he said the film’s distributor, Paramount Pictures, asked Cineplex to sell tickets at Tuesday prices for any day of the week — a 40 percent discount. Already discounted senior tickets were reduced by a smaller amount of around 13 percent.
Movie stars Jane Fonda, Lily Tomlin and football quarterback Tom Brady are aimed squarely at an older audience.
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A similar discount was given by US chain AMC, which charged matinee prices for the film.
Also this week, AMC announced that it will soon charge different ticket prices based on where the seat is in the theater. The move immediately drew backlash from moviegoers, including actor Elijah Wood, who tweeted it would “punish people” who couldn’t afford it.
While Jacob didn’t rule out a similar move at Cineplex, he said it’s something the company isn’t currently considering and that he intends to be “very cautious” when considering such models.
Cineplex meddled with the concept on a smaller scale when it charged more for “premium seating” in the center of the auditorium at some of its more upscale locations. Those experiments were halted early in the pandemic, Jacob said, in part because people were sitting in other people’s “first” seats without paying for them.
“It’s difficult to navigate when the show has started and people are fighting for seats,” he added.
Cineplex hopes a new theater, dining and entertainment complex called Junxion will be a more successful way to increase sales and attract customers.
The hybrid venue opened in Winnipeg last December and features six reclining auditoriums, an arcade, a live entertainment area and dining options.
This report from The Canadian Press was first published on February 7, 2023.
Companies in this story: (TSX:CGX)
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