Regal Cinemas Plans to Test Demand-Based Pricing

The theater industry is facing challenges with low box office turnout and revenue, leading to falling share prices for major chains like AMC and Regal. To address this, theaters are considering dynamic pricing strategies, where ticket prices vary based on demand. However, studios are hesitant about this approach as it could imply a movie's quality. The industry is at a critical juncture, with pressure from streaming services like Netflix and Amazon. A middle-ground solution may emerge, as dynamic pricing is common in other entertainment sectors.

What are the concerns of studios regarding the pricing of movies?

In what ways might theaters adapt to the competition from streaming services?