AMC Entertainment (NYSE:AMC) has decided to shelve its variable seat pricing plan as the pilot test showed consumers were willing to pay a premium price for their favored seats in theaters. The company began testing its “Sightline” pricing plan in February of this year. The plan included charging a premium price to customers for seats in the center of the theater called “Preferred Sightline.” Meanwhile, the seats in the front rows were charged lower under the “Value Sightline” tag.
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The program was tested in three markets in the U.S., but the dull response from moviegoers has compelled the theater chain to drop the plan. Also, rival theaters do not offer such variable pricing, which makes it even more difficult to sell pricey seats. AMC has said that it will try alternative ways to keep its front-row seats occupied, such as offering more comfortable seating. Such a program would take effect at select locations later this year, the company added.
It would be fair to assume that movie theatres all across the world are having a hard time attracting consumers, akin to pre-pandemic levels. The much-awaited theatrical releases of Barbie and Oppenheimer today should bring back the lost craze for the larger-than-life cinematic experience.
Is AMC Stock Expected to Go Up?
On TipRanks, the average AMC Entertainment price target of $2.16 implies the stock is poised for a 50.1% downside potential in the next twelve months. AMC stock has a Moderate Sell consensus rating based on two Holds versus three Sell ratings. Analysts seem unscathed by the popular movie releases slated this year and continue to forecast the stock’s underperformance in the coming months. Meanwhile, AMC stock is up 10.2% year-to-date.
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