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Tuesday, March 01, 2016

'Dynamic Ticket Pricing' Is In Your Future

On February 1st, CMB posted that Disney, Fox, and Lionsgate had partnered with Atom Ticketing to set in motion the eventual push to the use of 'dynamic ticket pricing' by movie theaters.  DTP, or ticket price management, is a process by which a cinema (studios) charge more or less for a movie admission based upon a film's popularity, day and time screened, cinema location and other factors so as to optimize each movie's admission gate.

It seems now, that the plot has thickened, as this week Comcast's subsidiary Fandango (the online ticketing company) acquired Flixster and Rotten Tomatoes from Time-Warner - bringing two studios: Warner Bros. and Universal (also sub. of Comcast) together.  Under the deal, WBs would retain an equity stake in Fandango.

Rotten Tomatoes, a website which aggregates film reviews and posts movie ratings fits in nicely with ticket selling sites.  Fandango reaches about 40 million people per month while Flixster and Rotten Tomatoes attract about 19 million but serve different demographics.  Amazon's IMBd, the #1 movie go-to site, attracts 73+ million visitors each month.

Under the Comcast/WB scheme, Flixster will no longer be selling movies but will focus on movie news and information (a la CMG).  Fandango will continue to sell tickets but also increase its video and movie sales.

These acquisitions and restructurings are all part of what could be termed, 'the movie ticket life cycle'. The Comcast/Warners alliance will be competition for the Atom/Disney/Fox/Lionsgate venture and they both adopt the dynamic ticket pricing model.  It's just a matter of time before Sony, MGM, and Paramount get on board.

You heard it first at CMG. 

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