AMC Abandoning Seat-Based Pricing Model for New Front-Row Initiative

AMC Theatres is reportedly going to be launching a bold new initiative, which will see the theater chain drop its variable pricing plan for seats “to ensure its ticket prices stay competitive.” Instead, AMC will launch a new program that aims to “upgrade the seats at the front of each theater.” 

“Beginning in late 2023, AMC will begin testing its newest seating concept,” AMC Theatres said in a statement. “Large, comfortable lounge-style seating areas will allow guests to lay all the way back and relax. The angle of the seats will also make it more enjoyable to watch movies from these front row seats closest to the screen.” 

This is an interesting prospect for the movie theater business. Front rows of theaters are traditionally viewed as ‘dead zone’ seating, forced upon the last ones to arrive in the theater for a crowded new movie. To be fair, the front row seats of many theaters are pretty much useless, as the viewing angle to the screen is so steep it hurts the neck, if your eyes can even bring the film into proper focus, at all. It’s so bad that a fair percentage of moviegoers stuck with the options of sitting in the front row or asking for a ticket refund choose the refund. 

That all said, it’s hard to imagine that actually selling out the front rows of theaters is going to make such a significant difference in movie theater revenue – but someone must’ve crunched promising enough numbers to make AMC go for it. 

Movie theaters need whatever ideas they can get to both increase theatrical ticket sales (profits that primarily go to the movie studios), as well as the on-site amenities like concessions and other premium services that make the theaters the most money. As a matter of fact: it’s most likely the statistical increase in customers per theater that AMC is (literally) banking on with this venture: every additional customer in the theater is a potential new customer (and $$ amount) for concessions and other theater services. 

2023 was the year that movies (and theaters) were projected to return to pre-pandemic regularity. The studios released a stacked slate of movies for the year – especially the summer movies slate – but the demand by moviegoers has not met the supply. It’s become clear that streaming and home theater viewing have taken over and there is no going back. So whatever movie theaters do to remake themselves into a desirable outing for customers – they should be exploring it.