Low Cost Cinema Through Dynamic Pricing

cinesprocket writes "EasyJet, the European pioneer of LowCost airline travel has broadened its horizon into the entertainment field. easyCinema is to open tomorrow in Milton Keynes, England, offering cinema-goers cheap rate tickets as low as 20 pence (33 cents) using the same formula that made their airline company revolutionise the industry in Europe. However, according to the the BBC, easyCinema is being given the bird by Hollywood who will not allow it to show it's high cost movies for a low price for fear that it will create a domino effect in the future, like the airline industry has felt (in Europe). Given that easyCinema is willing to pay the movie producers the same price as the other multiplexes, it shouldn't matter what price they sell on the tickets at for we poor folk? Their success depends upon showing the big films and their lawyers are reported to be already mounting a case. Given that the case will be heard in England, where the MPAA have less of a hold on the government, it will be interesting whether they can bring the behemoth to its knees."

Comments

Wha lawyers?

[Have Blue]

Courts? Why are there courts involved? Is easyCinema trying to force the MPAA to sign a contract? Is the MPAA trying to get easyCinema shut down even though they aren't doing business with each other?

Re:Wha lawyers?

[KewlPC]

Except you forget that the movie's makers get their money from ticket sales, at least they do here in the US.

Even if easyCinema offered to make up for the difference in ticket price (which they aren't; they're just saying they'll pay the same amount for the right to show the film as the other theaters, which is very small compared to the film's actual budget), easyCinema's price for everything else (candy, drinks, etc.) would skyrocket (why do you think theaters charge so much already? When you only get 50% of the ticket price, you've got to make your money elsewhere).

Typically here in the US, the distributor gets 50%, and the theater gets the other 50%. The distributor then takes their 50% and divides it up amongst all remaining parties according to their contract(s) with said remaining parties.

And the MPAA isn't a monopoly. It doesn't make movies, it doesn't distribute them, and it doesn't advertise them, therefor it can't be a monopoly. The whole point of the MPAA originally was to be a non-governmental regulatory force (here in the States, it's the MPAA that gives the movies their (voluntary) rating; it was also the MPAA that decided the dispute between New Line Cinema and MGM over the name of Austin Powers: Goldmember), but its purpose has been extended a bit since then.

What's more, the member studios compete against each other, and none of them are monopolies.

If ordered that since they allow other theaters to exhibit their films they must also allow easyCinema to, it could be very likely that the major Hollywood studios would simply not distribute their films in theaters at all, since they don't make much money in the UK anyway (even non-fluff, non-action films make only a few million in the UK).

Ultimately, I think that this will hurt everybody: the big Hollywood studios, the UK studios, and the independents, since 50% of a 33 cent ticket price is only 16.5 cents. At that rate, even if everyone in the United States (population is approx. 280 million) saw a film, it would only pull in 46.2 million. And since the percentage of any country's population that see a particular film is incredibly small, films would make far less.

But how would this hurt the moviegoing public? Simple: far fewer films will get made (if any), they will be much shorter, and of far lower quality.

MPAA

[Soulfarmer]

should be US-only problem. If something, in this case rights to show a movie in a theather, is sold to europe, MPAA should not have ANY say in the matter. As long as both parties of the deal which gives those rights follow the deal.

It makes me angry to even think about any meddling from MPAA part on british, or any european film avenue for that matter.

Just imagine...

[Code-Ex]

- Frequent viewer miles - Standby viewings - Movie ticket scalping - Last minute rushes for extremely low prices - Progressive/preferential seating and all those other "niceties" ^_^

Re:Just imagine...

[cheshiremackat]

You know what... there is a cinema in Toronto that offers *First Class* stlye services like on an airline... the tickets are 50% more, BUT you get a seat in a smaller theater, with Lay-Z-Boy type seats, free coat check (a nicety for Winter in Toronto), and a cinema Peon to fetch your popcorn and water (still have to pay though)...

So although it costs more, and I feel like a snob going, it actually becomes more reasonable everytime I see a movie at the *regular* (coach?) seating... Before the Matrix was 30 minutes of commercials, 5 (!?!) movie previews (1 good 4 crap), and waiting for the movie to start (before the lights dimm) there were slideshow ads on the screen...

Paying first class is certainly worthwhile, just to avoid all the advertisements!

_CMK

Why not?

[Viceice]

As it stands, in some parts of the not so rich world , movie tickets are just about equel that in value.

So what if the lowest possible ticket price is 33 cents? it's just like booking a really cheap flight.. teh cheapest one being the 3 a.m flight which you have to book 6 months adead for.

Why not have it like in a real theather, where the better seats, say smack right in the center, are more expensive then the left most seat in the front row?

You get to advertise cheap and you have the option of paying less for a crappy seat.

Multiplex history

[toxcspdrmn]

Milton Keynes was the first place in Britain to build a multiplex cinema.. The Point opened in 1985, but (I have heard) is having to close as it is has been unable to compete against the new Xscape cinema/indoor ski/health centre.

Incidentally, Milton Keynes is also home to probably the world's only herd of concrete cows.

Not necessarily cheap...

[BlightThePower]

First a point of order and then an opinion...

At the risk of pissing in the wind here... the answer to quite a few questions that are above this are in the article.

Those confused by the viability of the business model: NOTE: Not *all* the tickets will cost 20p. In fact, probably relatively few. As the article says, you could actually pay 5 pounds, which is more than my local cinema charges now. Sure, the tickets will be on average cheaper but this 20p thing is clearly an advertising gimmick. And as such it seems to be working so far.

I wonder how succesful this will be. Flying, if the experience as a whole is reduced in quality is fine; its a functional activity getting from A-to-B. (EasyJet=no "free" inflight snack or drink, no "free" papers, the crews do the cleaning etc, you are herded on, you are herder off) You don't fly for the sake of it. Going to the cinema on the otherhand is about more than the film itself. Depending on how far corners are cut (maintenance, technical specs of equipment, cleanliness etc.) it might be a bit unappealing as something you might do for the sake of it.

Personally I welcome this if only because I can grandly goto a more expensive cinema round the corner and be able to watch in peace without rowdy teenagers annoying me. All for a few extra quid. Seems like a bargain to me. Everyone will be happy :-P