Clubware’s online gym software is not your run of the mill management system. It has been carefully designed to incorporate all the elements that a fitness club would need. How did we do that?…read more
New App brings dynamic pricing to cinemas
A recently launched Australia App which offers dynamic pricing for movie tickets has attracted more than 10,000 subscribers in just a few months.
Choovie, a Melbourne-based start-up which launched in March after two-and-a-half years of development, has been trialling in 20 independent cinemas and will soon have 11 more on board.
The app integrates with existing ticketing systems to fill up otherwise empty cinema seats, using pricing algorithms based on forecast demand to sell tickets that would otherwise go unsold.
According to co-founder Shane Thatcher the idea came when he and his partner Sonya Stephen realised more than 80% of cinema seats go unfilled.
Thatcher, a trained economist, told news.com “we are pretty common moviegoers, and we'd go to the movies and see fewer and fewer people in there.
"It would drive me nuts. It culminated in us dashing around a multiplex once to work out how many people were in there at quarter to six on a Wednesday. Out of 13 cinemas, there were 35 people."
To combat stagnating ticket sales - which have been falling on a per capita basis - cinema chains have been trying to maximise revenue per customer through higher standard ticket prices, premiume seating, 3D glasses and growing food and beverage sales.
According to Screen Australia, while the average ticket price has risen just 33% in the past decade from $10.37 to $13.80, the top ticket price has risen by more than 61% from $15.50 to $25.
Thatcher added “essentially the cinemas are saying, we're not getting as many people in, but we want to get more from them.
"Ticket prices have gone up, the offering is better, but it does go out of reach of the average person."
Choovie's goal in the next three years is to get 4-5% of the 90 million tickets sold every year in Australia.
Thatcher continued “in the background of Choovie is an algorithm that estimates the capacity for every single movie time and combination.
"If it's an obscure French film on Tuesday at 2pm, it's unlikely to be very busy, but if it's Friday opening night for Rogue One it's probably chockers.
"That's pretty consistent, so you can estimate how those demand profiles will look. So rather than it being a last-minute thing, it's set up in advance."
He said while they had expected younger consumer to be using the app, they were actually seeing an older demographic and a "a lot of families".
Thatcher advised “if you're sitting at home on the school holidays with four kids and you want to go to the movies, it's a pretty expensive proposition.”
According to the news.com.au report, Choovie bills itself as a "win-win" for the cinemas, with the app charging a standard booking fee of $1.25 per ticket.
However, Thatcher faces a considerable task in convincing the major chains to get on board.
According to market research firm IBISWorld, the three chains combined make up two thirds of the $1.7 billion cinema industry in Australia, with Event holding 28.7% market share, followed by Village Roadshow on 18.8% and Hoyts on 18.4%.
11th July 2017 - CINEMA CHAINS DISCOUNT TICKET PRICES IN STAGNANT MARKET
24th May 2016 - ARTHOUSE CINEMAGOERS ALSO GO TO MAINSTREAM MOVIES
17th May 2016 - CINEMAS MOVE TO PROVIDE LUXURY THEATRE SEATING
9th September 2015 - LONG TERM VIABILITY OF CINEMA IN JEOPARDY AS ATTENDANCES SHRINK
17th May 2015 - CINEMAS MOVE TO PROVIDE LUXURY THEATRE SEATING
19th February 2014 - AUSTRALASIA NEEDS TO MAKE THE MOST OF DYNAMIC PRICING IN ENTERTAINMENT AND SPORT
23rd May 2012 - DYNAMIC PRICING IN THE SPOTLIGHT: ARTS AND ORIGIN II
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
The P.A. People is a specialist integrator and contractor in sound reinforcement, audio visual systems, performance lighting and production communications. Over its almost 50 year history the company…read more
Intelligenz provides Leisure Management Software for managing all your Program Registrations, Facility Bookings, Membership Sales and POS Transactions; including detailed Reporting, automated…read more
Hadley Australia and Series Australia Pty Ltd are the leading quality theatre chair manufacturers in the southern hemisphere. The businesses work closely with architects, interior designers and…read more
Track. Engage. Retain GreeneDesk is a suite of cloud based software solutions helping health clubs, leisure centres and swim schools to effectively track progression, improve customer engagement and…read more
With its sleek good looks and easy-to-use yet powerful functionality, Envibe is the premium fitness club software for the Australasian leisure, recreation and fitness industry. We are the most…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!