US cinema chain to trial charging less to see movie flops

US cinema chain Regal is planning to trial a new pricing structure which will mean that movie fans will pay less to see flop movies and more for hits.

The second-largest chain in the US, Regal has seen its revenue drop by 12 percent from last year, and hope so-called ‘dynamic pricing’, based on the demand to see certain movies, may entice cinema-goers back to the multiplexes.

Amy Miles, chief executive officer of Regal, told Bloomberg: “Changes to the historical pricing structure have often been discussed but rarely tested in our industry, and we’re excited to learn even more about how pricing changes impact customer behavior.”

Shares in Regal have dropped 21 percent this year, while AMC, the biggest chain in the US, has seen a massive 58 percent drop in its share price.

The new plan is being implemented by Atom Tickets, an app which sells movie tickets.

“If we can get consumers to go one more time a year, that is transformative to the whole business,” said a rep for the company.

The US cinema business took a serious hit this summer, reporting the worst takings since 2006, following a wealth of high-profile flops, from ‘King Arthur: Legend of the Sword’ to the ‘Baywatch’ movie with The Rock and Zac Efron.

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