AMC Ends Tiered Seat Pricing. Should Indian Theatres Follow Suit?

In a fantastic piece of news for diehard cinephiles and moviegoers based in the US, AMC theatres, America’s largest movie theatre chain, has revealed that it is putting an end to its location-based tiered seat pricing plans. For the unversed, AMC theatres had earlier this year decided to implement a movie ticket pricing plan according to which seats in the front were to be cheaper while those in the middle and back were priced higher. The move had led to criticism from many quarters.

The aforementioned tiered seat pricing structure might have been scrapped by AMC theaters, but it is not a new phenomenon as far as Indian theatres are concerned. Even before the advent of multiplexes in India, the concept of balcony, box, and first-class seat categories and their differential ticket pricing structures were prevalent for Indian moviegoers.

Even after the arrival of branded multiplex movie theatre chains in India, the concept of differential / tiered movie ticket pricing did not end. Until now, Indian moviegoers still pay a premium charge for seats at the back of a cinema hall. While the front three rows usually bear the lowest price because of their inconvenient location (viewers have to crane their necks upwards towards the screen in this case).

For instance, for the currently running film ‘Oppenheimer’, a PVR or an INOX theatre in the Delhi/NCR region is charging more for the back seats while the front rows have the cheapest ticket prices. So, the question is: should Indian theatres do what AMC has done in the US? Should Indian theatres forgo the practice of location-based tiered movie ticket pricing?

One school of thought is that movie ticket prices in cinema halls should not adopt a location-based tired ticket pricing structure because it might seem biased, unfair, and discriminatory in nature.

But another school of thought might opine that there may be a segment of moviegoers who won’t be able to afford a movie ticket at all in a branded multiplex and that the significantly lower priced front row seats gives them a chance to watch a movie there. Moreover, there is a huge difference in the purchasing power / per capita income between American and Indian audiences.

An ideal scenario for Indian moviegoers would be that multiplexes charge the same amount for movie tickets irrespective of the row and seat location. And that amount should be set below a minimum threshold. But for that to happen, Indian theatre owners would have to think of something innovative to maintain their profitability. Although some multiplexes have been charging moviegoers exorbitantly for the food and beverages served in movie theatres, still they are facing fierce competition from the Indian OTT industry since the past few years.