AMC is making a bet that cost, not quality, is behind the recent downturn. Last week, the country’s largest exhibitor announced it will be testing a new pricing initiative in which it will charge a premium for movies that are “of the highest appeal.” In turn, less in-demand films will be cheaper.
For now, AMC will limit the pricing model to 30 venues across four cities — Boston; Columbus, Ohio; Indianapolis; and San Diego. The surcharge will be between 50¢ and $1.50.
“Think of it being applied, let’s say, to one or two movie titles each month,” AMC chief Adam Aron explained on the company’s Aug. 8 earnings call. “This is basic economic theory that goes back to the first microeconomics course we