AMC Theaters has decided not to proceed with their plans to change their seat pricing model. The proposed system, known as the Sightline initiative, aimed to charge higher prices for better theater seats. This would have involved offering reduced prices for front-row seats, elevated prices for middle seats, and a regular fare option for the rest of the seats.
Variety reported that AMC has now reversed their decision to introduce the Sightline at AMC program. Following a pilot test in select cities, AMC realized that there was insufficient interest in the different pricing structure to justify a nationwide rollout. The pilot cities will no longer have the Sightline pricing, and the planned implementation of the new model across the country has been canceled. In addition, AMC announced their intention to develop improved front-row seating by the end of the year.
Why AMC Was Looking to Pivot Its Seating Model
AMC's new pricing model, announced in February, was met with strong criticism. Detractors argued that it could detrimentally impact the moviegoing experience, with actor Elijah Wood specifically condemning the plan for potentially penalizing lower-income individuals and favoring those with higher incomes.
The introduction of this plan from AMC followed a significant setback faced by theaters nationwide: a substantial revenue loss due to the COVID-19 pandemic. In 2020 alone, AMC suffered a staggering $4.6 billion loss as a result of theater closures and decreased sales. Consequently, AMC has been actively seeking ways to implement major structural changes in order to recover its lost revenue. One such change, which has stirred controversy, is the decision to raise prices for tickets to The Batman, a move that AMC CEO Adam Aron has staunchly defended.
Despite canceling the Sightline model, AMC is actively making improvements to their operations, as evidenced by the announcement of better quality seats. While these seat upgrades may not generate immediate revenue like the Sightline model, AMC hopes that the increased quality will attract customers who have been hesitant to return to theaters during the pandemic. With highly anticipated summer releases such as Barbie, Oppenheimer, and Mission Impossible: Dead Reckoning, AMC Theaters has the opportunity to gradually recover and reach their previous attendance levels.
