KRG Studios moots dynamic pricing of movie tickets; netizens react

Karthik Gowda, one of the founders of KRG Studios, which is one of the major players in film distribution in the state, took to social media last night with a unique question to netizens, wondering if dynamic pricing of movie tickets would be a good strategy to bring people to theatres. He tweeted, “Is dynamic ticket pricing a good strategy way forward? Each film will open with a different pricing & as it starts filling up, the prices increase. We, @KRG_Studios are in talks with exhibitors on the same - Please opine.”

Karthik’s query drew a lot of response with many supportive of such a measure adding that it would, however, depend on the market/demand an actor/film holds. But there were also those who were not convinced it stating that it will not only encourage more people to hold out and wait for the film’s OTT release, but that it could also promote an open black market for tickets. Some also wondered if the dynamic pricing would work in decreasing order too, with tickets costing less if a theatre fails to fill up. The majority, though, favoured a lower fixed rate strategy and urged the filmmaker/distributor to look at other factors that drive up cost of a movie outing – like parking, snacks, etc.

Here’s a look at what netizens thought of Karthik’s idea

“Dynamic pricing would obviously work in hospitality or transportation; with most of the movies being available in OTT within a month or two this model might not work for movies”

“You cannot predict ppl mindset! Our ppl will wait for less price or even will not watch if they come to know prices are increased gradually.. EOD if cinema is good all these doesn’t matter. By default you will be winner if movie is good..”

“Same like ola/uber which charges more on demand? Might not look good for a cinema as we would end up skipping current show and try for next as we know we would get it cheaper..would end up losing people to watch if they couldn’t plan for next show.always make it better fr people”

“No, not really. Fixed rate is the best. This dynamic pricing only helps online ticket booking gateways. And usually going to a movie, in bangalore especially always kinda depends on some other work to do before or after the movie. Also sometimes impromptu decisions will come down”

“Make ticket pricing according to budget as well as affordable to middle class people”

“Dynamic pricing works on the principle of increased demand pushes the price higher. So when a theatre is 80% full only few front row seats will be available. As we all know no one prefers front row seats that too with increased prices. This wl lead to no occupancy of front seats.”

“So many people haven't understood the dynamic ticket pricing. When a show is open for booking it may start with Rs.200. When it's half booked it will be increased to 250. Then after 75% it will be again increased to 300. This is not the right approach. Fixed tickets are better.”

“This would act the opposite way, people will wait for demand to subside or even a OTT release . It will kill small budget movies”

Realizing that many misunderstood what he was proposing, Karthik added, “Thanks for a great response! Some of them got it wrong that if ticket prices increases, it will be beyond reach. This is not what I was proposing. Consider a boutique film which has great reviews which is presently as per regular rates at 150/- and above. What if we start selling at 50/- until 25% occupancy & then it increases by 20% for every 10% occupancy. We will see more footfalls. Hence, I said diff ticket pricing for diff films. A few multiplexes operate in this manner for films that are running housefull.”