According to Customer Management Practice, AMC Entertainment Holdings Inc.'s move to price tickets based on seat location is not the answer to the challenges the company faces.
AMC AMC has announced Sightline at AMC, a program that assigns seats based on sightlines to seats on the movie screen. Mario Matulich, the president of Customer Management Practice, thinks that the initiative doesn't address the issues facing the movie-theater chain and meme-stock darling.
When we look at AMC's recent sales results, is there a solution to the problem pricing optimization based on seating location? Matulich wrote a statement emailed to MarketWatch. He said no. According to Matulich, convenience is now the driving factor in how movies are watched. AMC s previous customer hasn't gone across the street to Regal Entertainment, he wrote, pointing out that customers have shifted their loyalty to streaming services they can watch from the comfort of their homes. Matulich wrote that the moviegoing experience is no longer meeting the needs of the customer. The customer is now a different kind of customer. AMC had its 12th consecutive quarterly loss in November. The company's sales were $968.4 million, compared to $763.2 million in the same period last year. AMC describes itself as the largest movie-theater company in the world, with approximately 950 theaters and 10,500 screens across the globe. The chain has been on a rollercoaster ride over the past two years that has taken it from beleaguered pandemic victim to meme-stock phenomenon. AMC raised $917 million in January 2021 because of the steep rise in its share price to tap into equity and debt markets. AMC's stock fell 10.3% Tuesday compared with the S&P 500 s SPX, which had a gain of 8.4%.