Cinema

How can price optimization help you?

Exhibitors’ pricing dilemma

Higher prices reduce demand. Lower prices increase demand, but cause lower revenues and problems with distributors.

Dynamic pricing solves this dilemma:  Prices are raised AND lowered depending on  the price sensitivity of each show.

Exhibitors Goals

 

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how can our services help you achieve your goals?

  • Analysis of demand and price structure
  • Simulation of prices and revenues
  • Scoping of interfaces with ticketing system and website provider

  • Calibrate pricing tool based on historic data
  • Develop and test interfaces to ensure ease of use for online and box-office customers
  • Share best practices for online and offline price communication

  • Automatic price updates 
  • Access to customized web-tool to change price settings and real-time reporting (if desired)

Typical results for exhibitors

+5% - 15%

Attendance at off-peak times

+5% - 10%

Revenue uplift

+5% - 10%

Online share

OUR CUSTOMERS

              

 

           

 

         

Our Case Study

'Smart Pricer’s software has increased our revenues significantly. We are pleased that our guests accept the new pricing model.''

- Jens Heinze, General Manager, UCI Kinowelt

“By examining our current pricing scheme in combination with data analytics, Smart Pricer delivered enlightening insights to applicable pricing improvements. After going live with Smart Pricer’s dynamic pricing solution at our Cinema Park theatres the first results are really impressive.”

- Roman Linin, CEO at Cinema Park Formula Kino

''Our initial applications of Smart Pricer's software have had very positive results. We plan to expand our use of their dynamic pricing technology.''

-Ian Shepherd, CCO, Odeon Group

Cinema FAQ’s

Cinema

The costs vary based on the scale of the dynamic pricing roll-out. Revenue uplifts are typically 5x – 10x higher than the cost of implementation.

As long as ticket discounts are modest and the overall average ticket price increases, distributors support dynamic pricing as they participate in revenue increases.

Testing dynamic pricing at a few theatres is usually the first step before conducting a full roll-out at all theatres.

The test preparation typically takes 2 to 8 weeks depending on:

  • The quality and speed of historic data delivery by the exhibitor
  • The availability of resources for setting up the price update process
  • The speed of adjusting customer communication and informing theater teams

For the live operation of dynamic pricing, efforts depend on the POS integration. This could either mean no effort is needed, meaning price updates are fully-automated or just 5 to 10 minutes per day for price updates to do be carried out by the local theater or central pricing team.

Communication is key for a successful introduction of dynamic pricing. We propose to transparently communicate how customers can make a bargain, e.g. “Buy early for off-peak shows and save up to 3 EUR”.

The revenue increases are measured by conducting A / B tests, i.e. we track the average ticket price and attendance development at theatres with dynamic pricing (test theatres) and compare them against comparable theatres without dynamic pricing (control theatres).

The combination of fixed capacity and variable demand, creates the perfect condition for dynamic pricing. As price sensitivity for each show fluctuates depending on movie, weekday, time and several other factors; dynamic pricing can be used to drive attendance during off-peak times as well as slightly lift ticket prices during peak hours if desired.

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Download our white papers

In this white paper we review the development of attendance, ticket revenue and ticket prices over the last years. We examine the pricing models of the top German chains and look at the pricing innovations that may shape the next years.

Smart Pricer German Cinema Pricing White Paper

In this case study we explain the demand forecasting and price optimization at one of European multiplex. We show different dynamic pricing implementation models tailored for specific cinema with insides into the Smart Pricer tool.

Application of Dynamic Pricing at European Multiplex

In this case study we explain the approach used by Smart Pricer to determine Classictic customer's willingness to pay by using A/B testing. Case study shows the used approach in details and presents the final recommendations for Classictic based on A/B testing results.

Using A/B testing to determine the willingness to pay

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