AMC Theatres announced early Feb. they will be introducing a new fee on select seats called Sightline that will affect lower-income moviegoers.
Sightline would affect the most popular and sought-after seating in the theater where the screen is best visible. The decision comes after years of declining interest in the theatergoing experience following the pandemic and the rise of streaming. This action impacts the lower-income consumer the most, while still not addressing the issue of streaming.
AMC’s Sightlinewould effectively be penalizing lower-income consumers, many of whom are college students. Kennesaw State students will feel this impact at the only movie theater in Kennesaw, the AMC Barrett Commons 24. The premium follows Netflix’s similar attempt to rebound by stopping password sharing. AMC has struggled in recent years following COVID and has had the influx of streaming platforms create a saturated market. The demand is low and the industry is still suffering from low turnout. From 2019 to 2020, the domestic box office dropped by almost 81%, and theaters still have yet to reach pre-pandemic levels. This fee is an attempt to save AMC but may lead to its downfall.
According to a press release from Feb. 6, AMC’s Sightlineis their attempt to follow a “seat pricing approach to that of many other entertainment venues, offering experienced-based pricing and another way for moviegoers to find value at the movies.”
A counterintuitive, but effective strategy, would be to lower ticket prices. Making the theater affordable would increase ticket sales. A tactic used last year during an extended fallow period the major theater chains, including AMC, created National Cinema Day. The wildly successful promotion led many non-moviegoers to the theater and benefited the chains. Lower ticket prices would create an opportunity for people of lower income to experience films without worrying about the cost. It would also encourage consumers to purchase from the concession stands, where theaters make a large portion of their profit.
Instead of additional fees, AMC needs to redirect efforts to lobbying the major studios in expanding the theatrical window. Since 2020, streaming services like Disney Plus and HBO Max have opted for 45-day theatrical windows before streaming. This created an expectation for films to be front-loaded and requires a high-grossing first weekend.
Short theatrical runs also remove the potency of word of mouth, which in the past has allowed small openers to rise through the box office over weeks. Few movies released by major studios have avoided the window and have proved that audiences will keep showing weeks into their run, “Top Gun Maverick” and “Avatar: The Way of Water” most prominently. The films provided consistent revenue for several months in between major studio releases.
Sightline will be rolled out gradually throughout 2023 and will be in effect across all AMC locations by the end of the year. The premium will not apply to AMC A-List and Stubs members, or showtimes beginning before 4:00 p.m. It has not been announced when Sightline will take effect at AMC Barrett Commons 24.
