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Demand-Based Theater Pricing

The Regal Entertainment Group is Testing New Pricing Structures

— October 25, 2017 — Marketing
As movie theaters are increasingly having to compete with streaming services that consumers use on a regular basis, companies like the Regal Entertainment Group are testing various strategies to motivate consumers to come to the movies.

Most recently, the Regal Entertainment Group decided to adapt to consumers' shifting movie viewing habits by testing out demand-based pricing for the movies its theaters show. With the help of the app maker Atom Tickets LLC, the company will test lower and higher pricing for each individual movie being shown, with popular movies being higher in cost than those less so.

The company will test this new strategy at the beginning of next year, and will do so in a way that is statistically significant – with economic benefits revealing whether this should be a strategy it chooses to permanently institute in its business model.
Trend Themes
1. Demand-based Pricing - Adopting a pricing strategy that fluctuates based on consumer demand can help businesses incentivize customers and compete with streaming services.
2. Movie Streaming Services - Movie theaters can explore partnerships with streaming platforms to offer unique viewing experiences and attract more customers.
3. Data-driven Decision Making - Leveraging data analysis and consumer insights can enable companies to make informed pricing decisions and optimize revenue.
Industry Implications
1. Movie Theater Industry - Implementing demand-based pricing models can revolutionize the movie theater industry by attracting more customers and increasing revenue.
2. Mobile App Development - Collaborating with app developers and integrating innovative ticketing platforms can enhance the customer experience and drive movie theater attendance.
3. Data Analytics Industry - Providing data analytics solutions and tools for businesses can help optimize pricing strategies and support data-driven decision making.
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