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    Senate Introduces Long-Awaited Bill Promising Changes for Ticket Buying

    The Fans First Act would require disclosures about fees and the location of tickets, strengthen a law banning bots and set stiff penalties for violations.The United States Senate introduced a long-awaited bill on Friday promising consumer protections for tickets to live entertainment events, after more than a year of complaints about high fees, out-of-control prices and deceptive selling practices in the entertainment world.The bill, called the Fans First Act, would require sellers to disclose the full price of a ticket, including all fees; indicate what seat or section a customer is gaining access to; and say whether a ticket is being offered by its original or “primary” seller, as opposed to a reseller or broker.The bill, introduced by John Cornyn, Republican of Texas, and Amy Klobuchar, Democrat of Minnesota, along with four others, would also strengthen an existing law banning the use of computer bots, a tactic frequently used by scalpers; require ticket sellers to offer full refunds when an event is canceled; set thousands of dollars in penalties for abuse; and require the Government Accountability Office to study the ticketing market and make recommendations.The proposed law comes as ticketing has become a hot-button issue for voters and lawmakers, with prices at record highs and the selling practices of both primary ticketing companies — like Ticketmaster, which tends to represent artists and venue box offices — and resale marketplaces like StubHub and Vivid Seats having come under fire.At a Judiciary Committee hearing in January, two months after Ticketmaster’s system crashed during a Taylor Swift presale, senators from both parties pilloried an executive from Live Nation — which owns Ticketmaster — and called the company a monopoly that harms consumers. Separately, the Justice Department has been conducting an antitrust investigation of Live Nation.At his State of the Union address in February, President Biden said, “We can stop service fees on tickets to concerts and sporting events and make companies disclose all the fees upfront.” And in June, under pressure from the White House, ticket sellers including Ticketmaster and SeatGeek agreed to introduce “all-in pricing” for tickets.That scrutiny has developed as the concert industry had its biggest year ever, with the trade publication Pollstar saying that gross ticket sales for the Top 100 worldwide tours were $9.17 billion in 2023, up 46 percent from the year before, and 65 percent from 2019, before the Covid-19 pandemic disrupted the industry.The new Senate bill proposes steep civil penalties for violations, to be enforced by the Federal Trade Commission and state attorneys general. According to the bill, those penalties could include $15,000 per day during which a violation occurs, along with $1,000 per event ticket advertised or sold; those fines could amount to as much as five times the listed cost of a ticket.“The current ticketing system is riddled with problems and doesn’t serve the needs of fans, teams, artists or venues,” Mr. Cornyn said in a statement. “This legislation would rebuild trust in the ticketing system by cracking down on bots and others who take advantage of consumers through price gouging and other predatory practices and increase price transparency for ticket purchasers.”Ms. Klobuchar added, “From ensuring fans get refunds for canceled shows to banning speculative ticket sales, this bipartisan legislation will improve the ticketing experience.”In addition to Mr. Cornyn and Ms. Klobuchar, the cosponsors of the bill include two additional Republicans (Marsha Blackburn of Tennessee and Roger Wicker of Mississippi) and two Democrats (Ben Ray Luján of New Mexico and Peter Welch of Vermont).The new bill joins a number of other proposed laws in both houses of Congress, which would need to be reconciled for any to become law. In July, the Ticket Act, requiring the upfront disclosure of the full price of a ticket, passed the Commerce Committee. In the House of Representatives this week, another bill calling for transparency in ticket prices passed the Energy and Commerce Committee.The new Senate bill has been in negotiations for months, and some activists have privately complained about its compromises. The bill bans “speculative” selling, in which resale brokers list tickets for sale without actually having them in hand, betting that they can fulfill the order later. But it still allows “concierge” services in which brokers charge fans to wait in a digital line for them, a process that consumer advocates say puts ordinary customers at a disadvantage.Still, the bill has broad support throughout the music industry, including from venue and artist groups; the Recording Academy, the organization behind the Grammy Awards; and Fix the Tix, a coalition of many talent and industry groups.Live Nation, which has called for government action to reform the ticket market, also said it supports the bill, saying, “We believe it’s critical Congress acts to protect fans and artists from predatory resale practices, and have long supported a federal all-in pricing mandate, banning speculative ticketing and deceptive websites, as well as other measures.” More

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    AMC Theater Chain to Stop Charging for Better Seats

    The contentious initiative will be abandoned next month, though the company will roll out a new one involving lounge-style seating in the front rows.AMC is abandoning plans to charge more for movie seats depending on their location. But higher prices for center-middle seats at theaters where AMC has been testing the concept will remain in effect this weekend, when “Barbie” and “Oppenheimer” are expected to draw significant crowds.AMC Entertainment, the world’s largest theater chain, said on Thursday that it would “pivot away” from a contentious initiative called Sightline, in which seats at evening screenings had three tiers of pricing, ending the long-held cinema custom of charging the same amount for any seat in a theater. (Discounts of $1 to $2 were offered for the neck-craning front row, increases of $1 to $2 for the center-middle and the status quo for the rest.)The concept was rolled out in March at theaters in New York, Illinois and Kansas to howls of protest from some moviegoers. AMC always labeled it as a test.The experiment will end sometime in August, an AMC spokesman said. But the company plans to start a new trial involving front-row seats, which often go unsold. Later this year, AMC said it would pull out traditional front-row seats and replace them with “large, comfortable, lounge-style seating areas that will allow guests to lay all the way back.”AMC and other theater chains, after steadily raising prices at their concession stands, have started to focus more intently on seats for revenue growth. Increasingly, for instance, multiplexes have been pushing customers toward premium-priced tickets for screenings that feature extra-extra-large screens or enhanced sound systems.Adding to the pressure, attendance has still not recovered from the early pandemic, when many theaters were closed for months. So far this year, ticket sales are running roughly 20 percent behind the same period in 2019.AMC said Sightline did not pan out as it had hoped. In particular, the company saw “little or no incremental lift in front-row attendance, even with a price reduction applied to those seats.” About three out of every four customers who previously sat in center-middle seats paid the surcharge to continue doing so, AMC said. Some of those people moved to other seats. A small percentage stopped buying tickets at AMC.Notably, competitors did not follow AMC in re-pricing seats, making the company less competitive in the test markets.AMC’s plans to stop the initiative were reported earlier by Bloomberg News. More

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    Live Nation and Other Ticket Giants Promise Transparency on Fees

    Live Nation and SeatGeek said they would show customers the full cost of concerts, after the White House’s complaints that “junk fees” for tickets and hotel stays can mislead consumers.Under pressure from the Biden administration, some of the biggest companies that handle ticketing for concerts and other live events announced on Thursday that they will make it easier for consumers to see the full price of tickets they want to buy, including the fees that can often add more than 30 percent to the total cost of an order.Live Nation, the world’s largest concert company, said it would begin introducing “all-in pricing” — showing consumers the full price up front — at the venues it controls, which include more than 200 amphitheaters, clubs and other spaces in the United States. Ticketmaster, which is owned by Live Nation, said it would make this tool available to other venues and promoters as well. Those changes are expected beginning in September.SeatGeek, a major vendor for reselling tickets that also works for major venues and sports teams like the Dallas Cowboys, said it too would begin introducing a feature that would reveal to consumers the full price of a ticket.Those changes come as the Biden administration has stepped up its pressure on the entertainment and travel industries to rein in what it calls “junk fees.” Before beginning a round table at the White House with executives from Live Nation, SeatGeek, Airbnb and other companies on Thursday, President Biden framed the crackdown on surcharges as a way to appeal to the working class — a major theme of his re-election campaign.“These hidden charges that companies sneak into your bill make you pay more without you really knowing it initially,” Mr. Biden said. “Junk fees are not a matter for the wealthy very much but they’re a matter for working folks like the homes I grew up in.”As Mr. Biden spoke, a screen showed an example of a “service charge” of $12.99. But for the most in-demand concerts, those fees can be many times higher. For one Drake concert, for example, a screenshot ricocheted around social media in March showing that for two tickets costing $544, three surcharges — service fee, facility charge and order fee — added another $541, nearly doubling the total cost.Ticketing, and questions of competition and consumer fairness in the entertainment industry, became hot-button issues in Washington after a botched presale in November for Taylor Swift’s Eras Tour. Ticketmaster’s system was overrun with bots, and many fans reported that tickets they had selected disappeared from their online shopping charts.At a Senate Judiciary hearing in January, Live Nation came under harsh, bipartisan attack, with senators openly calling the company a monopoly. The Justice Department has separately been investigating Live Nation for potential violations of the consent decree that was a condition of the company’s merger with Ticketmaster in 2010; among the terms in that agreement were that Live Nation cannot threaten venues with retaliation for not using Ticketmaster as their official ticket vendor.But the extent to which the most recent promises by Live Nation and SeatGeek would substantially change the ticket market are unclear. The concert industry is complex, with pricing and fees controlled by various parties that have little incentive to reduce their take — especially with live music rebounding after its near-disappearance during the Covid-19 pandemic, and ticket sales now reaching record highs.The changes by Live Nation and SeatGeek do not lower prices or include any commitment to reduce surcharges, which are often set by venues; those companies are simply promising to disclose fees as part of a ticket’s total cost.After Mr. Biden’s State of the Union address in February — at which he said, “We can stop service fees on tickets to concerts and sporting events and make companies disclose all the fees upfront” — Live Nation proposed federal legislation that, among other things, would mandate all-in pricing.Without all competitors held to the same standard, many executives in the ticketing world say, those that comply voluntarily would be put at a competitive disadvantage, since other venues and ticketing services could lure customers by advertising lower prices, only to reveal surcharges once a customer completes a transaction.Senator Richard Blumenthal, a Democrat of Connecticut who is a sponsor of a bill called the Junk Fee Prevention Act, offered a mixed review of Live Nation’s pledge of transparency.“Live Nation-Ticketmaster’s announcement is a step in the right direction,” Mr. Blumenthal said in a statement, “but no substitute for legislation to provide consumers with transparency and prevent companies from imposing ridiculous junk fees.”Still, Mr. Biden said that all the companies he had gathered for the round table were “voluntarily committed to ‘all-in’ upfront pricing,” and he called it a victory.“This is a win for consumers in my view,” Mr. Biden said, “and proof that our crackdown on junk fees has real momentum.” More

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    The Cure Says Ticketmaster Will Issue Refunds After Fee Complaints

    The band said it wanted to make its North American tour “affordable for all,” but after tickets went on sale this week, fans said that fees had ratcheted up the price.The Cure’s frontman, Robert Smith, said on Thursday that Ticketmaster will provide $5 and $10 refunds to fans who purchased tickets for the band’s North American tour after the band complained to the company about high fees.In recent months, Ticketmaster faced increased criticism from ticket buyers as well as from members of Congress who accused its owner, Live Nation Entertainment, of being a monopoly that hinders competition and harms fans.Mr. Smith said on Twitter that Ticketmaster would provide the refunds. “Ticketmaster have agreed with us that many of the fees being charged are unduly high,” he wrote.1 OF 2: AFTER FURTHER CONVERSATION, TICKETMASTER HAVE AGREED WITH US THAT MANY OF THE FEES BEING CHARGED ARE UNDULY HIGH, AND AS A GESTURE OF GOODWILL HAVE OFFERED A $10 PER TICKET REFUND TO ALL VERIFIED FAN ACCOUNTS FOR LOWEST TICKET PRICE (‘LTP’) TRANSACTIONS…— ROBERT SMITH (@RobertSmith) March 16, 2023
    Ticketmaster did not immediately respond to a request for comment.Mr. Smith said that people who had purchased the lowest-priced tickets would automatically receive a $10 refund per ticket and that all other ticket buyers would get a $5 refund. He said that these refunds applied to people who had purchased tickets as a “verified fan,” a Ticketmaster system that requires people to register to gain early access to ticket sales.Fans who buy tickets during the general sale on Friday will “incur lower fees,” he said.This week on Twitter, Mr. Smith addressed questions and concerns from fans about buying tickets for the 30-show tour, which runs from May to July and includes three performances at Madison Square Garden in New York in June.The Cure had said in an earlier statement that it wanted tickets “to be affordable for all fans.” As part of this effort, Mr. Smith said that the Cure had refused to participate in Ticketmaster’s dynamic pricing system, which adjusts ticket prices based on demand.The system was criticized last year after it drove up the cost for Bruce Springsteen tickets, some of which were selling for thousands of dollars.After tickets for the Cure’s tour went on sale on Wednesday, fans shared screenshots that showed tickets priced at $20 with added fees close to or above the $20 base price.Mr. Smith said on Twitter later that day that he was “sickened” by Ticketmaster’s fees.“I have been asking how they are justified,” he wrote in all capital letters, his usual Twitter writing style. “If I get anything coherent by way of an answer I will let you all know.”Ticketmaster and Live Nation Entertainment have been under increased scrutiny since November, when the company botched its planned public sale of tickets to Taylor Swift’s latest tour.In November, the Justice Department opened an antitrust investigation into Live Nation Entertainment focused on whether it had abused its power over the live music industry.In December, 26 of Ms. Swift’s fans filed a lawsuit accusing Live Nation Entertainment of anticompetitive conduct and fraud.In January, the company was the subject of a Senate Judiciary Committee hearing in which senators from both parties criticized the company’s handling of ticket sales for Ms. Swift’s tour as well as its wider business practices.Last month, on the same day Live Nation Entertainment announced it had made $651.3 million in ticket revenue in the fourth quarter of 2022, the company responded to politicians in a statement.The company, which sold more than 550 million tickets last year, said it had submitted more than 35 pages of information to policymakers to provide context on the “realities of the industry” that it has dominated since Ticketmaster and Live Nation, an events promoter and venue operator, merged in 2010.“These include the fact that this industry is more competitive than ever: Ticketmaster has actually lost market share since the 2010 merger, not gained it; that venues set and keep most of the fees associated with tickets and are increasingly taking an ever-larger share; and Ticketmaster has for years been advocating for a federal all-in pricing requirement,” the statement said.Ticketmaster and Live Nation Entertainment have for decades been criticized for their business practices. The Justice Department said in 2019 that Live Nation Entertainment had “repeatedly violated” the terms of the regulatory agreement that the government imposed as a condition of the merger.The Justice Department investigated complaints of anti-competitive practices by Ticketmaster in the 1990s, after a dispute with the Seattle grunge band Pearl Jam. More

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    Movie Tickets Veer Away From One-Price-Fits-All

    Anyone buying a ticket for a concert, baseball game, Broadway play or flight has experienced it: Seats are now priced with dizzying complexity, with costs in some instances changing minute by minute, based on demand.But movie theaters? In many ways, they have been trapped in pricing amber. A seat has cost the same no matter where it is or when it is bought.No more.As they struggle in a fast-changing business, multiplex operators — some carrying astounding debt because of pandemic shutdowns — have started to experiment with pricing in ways that have startled moviegoers. AMC Entertainment, the world’s largest cinema chain, is testing “sightline” pricing, giving seats at evening screenings different costs depending on their location. (Discounts of $1 to $2 for the neck-craning front row, increases of $1 to $2 for the center middle, status quo for the rest.) Chains have also started to charge more on opening weekends for expected blockbusters like “The Batman” and “Spider-Man: No Way Home,” with plans to ramp up the practice.“It’s a taste of what’s coming,” said Stacy Spikes, who co-founded the subscription ticketing service MoviePass, which he plans to reintroduce nationwide this summer. “The big theater chains are gaining the technology to implement variable pricing on a wide scale. This may have near-term financial benefits, but it may also reduce attendance of younger customers who are more price sensitive and key to future growth.”Increasingly, theaters have been pushing customers toward premium-priced specialty tickets. On Saturday evening at AMC Lincoln Square in New York, for instance, patrons interested in the boxing drama “Creed III” could choose from three IMAX screenings (a $7 to $11 surcharge, depending on seat location), three screenings with Dolby audio and visual technology and reclining chairs ($8 to $12 more), and two standard screenings ($18 for a regular adult ticket).“I’m going to go, no matter what, because I love it, but sorting through all the options is starting to feel like a nuisance,” said Chris Ordal, a tech executive in Los Angeles. “I understand why chains are doing this, but they’re not doing a good job of communicating how it helps the consumer.”Theaters have increasingly been pushing premium-priced specialty tickets for movies like “Creed III.”Eli Ade/MGM, via Associated PressThe move toward pricing complexity adds risk as theater owners look for ways to get people back into the ticket-buying habit after three pandemic-battered years. IMAX has been experimenting with live events, including concert simulcasts. Fathom Events has premiered episodes of a religious TV show, “The Chosen,” in theaters; episodes have generated $20 million at the box office since November, despite being available free online.Prices may actually be going down for certain types of movies — ones that have struggled to attract ticket buyers in the streaming age, including comedies, conventional dramas and art films. Last month, theaters lowered opening-weekend prices for the octogenarian comedy “80 for Brady” to attract value-sensitive older customers. Tickets for evening screenings cost the same as a matinee, a discount of up to 30 percent, depending on the location. Some theaters offered the same deal for “A Man Called Otto,” starring Tom Hanks.“In a business where the only innovation in pricing has been to go up, this is a good first step,” said Chris Aronson, the president of domestic distribution at Paramount Pictures, which released “80 for Brady” and urged theaters to lower prices.Inside the Media IndustryRupert Murdoch: The conservative media mogul acknowledged in a deposition in a $1.6 billion defamation lawsuit that several Fox News hosts promoted the false narrative that the 2020 election was stolen.Dropping ‘Dilbert’: Hundreds of newspapers across the country will stop running the comic strip after its creator, Scott Adams, said that Black people were “a hate group.”Carlos Watson: The founder of the troubled digital start-up Ozy Media was arrested on fraud charges, punctuating one of the more precipitous falls in the annals of online journalism.Vice Media: The departure of Nancy Dubuc, the chief executive of Vice, highlights the fallen fortunes of a group of digital media companies that not long ago was talked about as the future of the industry.“We’re hopeful that others will follow,” Mr. Aronson added, “and that this is hopefully the beginning of alternative ways of looking at pricing.” (Antitrust rules prevent studios from setting ticket prices themselves.)Theaters offered lower ticket prices for “80 for Brady,” hoping to attract value-conscious older customers.Scott Garfield/Paramount PicturesParamount spent about $28 million to make “80 for Brady,” which has so far collected about $40 million. Roughly 15 percent of the film’s target audience, women over 50, had not been to a theater in more than a year, according to exit surveys.Charging less for certain kinds of movies and more for others has long been a Hollywood third rail, with filmmakers panicking that it will send a message about quality. Just try telling Martin Scorsese that tickets for his next prestige drama will cost less than ones for “Ant-Man and the Wasp: Quantumania.”The difference now is that the theatrical marketplace has become so difficult for certain genres that many filmmakers may have no choice. Do you want your film to be seen in theaters? Or are you fine with it going straight to streaming, where it could get lost in the digital maw? If the answer is theaters, you may have to accept a discounted price.The average movie ticket cost $11.75 in 2022, according to EntTelligence, a research firm. In New York, prices reach $28, depending on the format. A small popcorn at AMC Lincoln Square costs $10 with tax. (Fun fact: The average movie ticket price in 1969 was $1.42, according to the National Association of Theatre Owners. Adjusted for inflation, that ticket would cost $11.93 today.)Because multiplex chains make most of their money from popcorn and soda, it is in their economic interest to keep ticket prices low; concession counters rely on foot traffic. But there isn’t much room to raise the price of popcorn anymore, prompting some operators to look at “creative” ticket pricing for growth.It has been a tough stretch for theaters. More than 500 movie screens have closed since the start of the pandemic.Philip Cheung for The New York TimesCinema attendance had been declining for decades, with people citing a variety of reasons for going less often: 50-inch TVs at home, streaming services, rude patrons who text on their phones when the lights go down. But the pandemic caused ticket sales to collapse in 2020 and 2021. More than 500 movie screens have closed since the start of the pandemic. Cineworld, the world’s No. 2 chain, filed for bankruptcy in September, and dozens of its Regal multiplexes in the United States have closed.A recovery has been slower than expected. Cinemas in North America sold $7.5 billion in tickets in 2022, a 34 percent decrease from 2019, according to EntTelligence. This year, domestic ticket sales are running 24 percent behind the same period in 2019, according to Comscore.The gap is expected to narrow this summer, largely because the flow of new movies is normalizing. Movies delayed by pandemic bottlenecks are finally ready. Studios are also rerouting fewer movies to streaming services. Twelve movies costing at least $100 million to make will arrive in theaters from May to July, up from six during that period last year.“If you squint hard enough, it is possible now to see a return to the better days,” Robert Fishman, an analyst at SVB MoffettNathanson who follows the Cinemark multiplex chain.Cinemark has comparatively little debt, but the hole for other theater companies is deep. AMC, which according to security filings has more than $5 billion in debt, said last week that it generated $990 million in the fourth quarter of last year, a 15 percent decline from 2021, and lost about $288 million.To shore itself up, AMC has offered $5 movie tickets on Tuesdays, introduced home popcorn products in partnership with Walmart, enhanced its Stubs loyalty program, announced plans to turn some theaters into Zoom conference rooms for corporate events and invested in a struggling Nevada gold mine. (Yes, really.) Last month, AMC announced its pricing experiment with seat location, which it calls Sightline.Adam Aron, AMC’s chief executive, characterized that move — charging a bit more for the best seats — as less a moneymaking gambit than a way to avoid broader price increases.“In these inflationary times, we are coming under pressure to raise prices,” Mr. Aron said in an interview. “We could have raised prices on every seat in the house. Instead, we are holding the line on 75 percent of the seats in the house.” (Also, subscribers to AMC’s premium loyalty program, Stubs A-List, can book a “preferred” seat at no extra charge.)Wall Street responded favorably. But cinephiles had a conniption. In a column, The Chicago Tribune’s film critic, Michael Phillips, called Sightline “a bush-league pickpocket move” and “the latest tiny nail getting tap-tap-tapped into the coffin currently under construction for an entire era of filmgoing.”AMC has pushed back, noting that some European cinemas have charged a premium for prime seats for years. Yes, prices are high in New York and Los Angeles, Mr. Aron acknowledged. But he said 30 percent of AMC customers paid less than $8 a ticket.“When you change the way an industry has priced itself for 100 years, it is not surprising that there is going to be lots of reaction,” Mr. Aron said. “It is our expectation that consumers will adjust to this very quickly.” More

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    How Much to See a Movie at AMC? It Will Soon Depend Where You Sit.

    By the end of 2023, the movie theater chain will offer tickets at three different price tiers, with middle seats costing the most. You’ll pay less if you like the front row.Some middle seats at AMC movie theaters will be more expensive than others as part of the company’s new ticket-pricing strategy, announced this week.AMC Entertainment, the world’s largest cinema chain, said in a news release on Monday that this new pricing system, known as Sightline at AMC, would be in place at all of its United States theaters by the end of the year.The seats in the front row of the theater will be the least expensive and seats in the middle of the theater will be the most expensive, the company said. However, new prices will not affect showings before 4 p.m. or tickets sold at a special discount on Tuesdays, AMC said.AMC’s executive vice president and chief marketing officer, Eliot Hamlisch, said in the news release that the tiered system “more closely aligns” with the reserved seats and pricing models of other types of ticketed events, such as sporting events and concerts.Mr. Hamlisch said that the change would give people “more control over their experience.”Critics of the new system, including the actor Elijah Wood, have said it would give wealthy people an unfair advantage.“The movie theater is and always has been a sacred democratic space for all, and this new initiative by @AMCTheatres would essentially penalize people for lower income and reward for higher income,” Mr. Wood wrote on Twitter.Under the new system, the most common seats available, the Standard Sightline tickets, would be priced as traditional movie tickets, AMC said.If you’re willing to crane your neck to see the screen, you’ll be able to pay less to sit in the “Value Sightline” seats in the front row. Some accessible seating for people with disabilities will also be priced in the value tier. To access the value tier prices, people must register with the AMC loyalty program, which includes one free membership tier.The seats in the middle of the theater will become “Preferred Sightline” tickets. The extra cost of these tickets will be waived for members of AMC’s top-tier loyalty program, A-List.A map outlining seating options will be available when buying tickets online, through the company’s app and at the box office, the company said in its announcement.AMC did not specify what the price differences would be for each ticket or whether prices would be consistent across cities and films.In New York City, the price differences were about to take effect at some locations later this week. At AMC’s 34th Street location in Manhattan, tickets were listed under the new pricing system for Friday’s showings of films, including “Magic Mike’s Last Dance” and a 25th anniversary screening of “Titanic.”For the 6:45 p.m. showing of “Magic Mike’s Last Dance,” the front row seats, a space for a person in a wheelchair and a seat for the companion of someone in a wheelchair were described as “Value Sightline” seats and colored blue on the seating map.A key for the map explained that the value tickets were $2 off and that the preferred seats were $1 extra. Those were the five middle seats in each of the four back rows of the theater with gold-colored icons. Discounts for children and older moviegoers remain in effect.The “Standard Sightline” tickets for this showing included the two to three seats on either side of the preferred seats, the second-row seats and the six other seats made available for people in wheelchairs and their companions.Movie theaters have been experimenting with new tactics to boost ticket sales in response to two decades of weakening attendance, shutdowns during the first years of the coronavirus pandemic and the widening availability of digital streaming of first-run movies.In September, Cineworld, the London-based company that operates Regal Cinemas in the United States, filed for bankruptcy.Cineworld is the second-largest theater chain in the world behind AMC, and the company’s chief executive, Mooky Greidinger, said in the bankruptcy filing that “the pandemic was an incredibly difficult time for our business.”AMC said that by the end of the year, its new pricing system would be in place at all of the company’s theaters in the United States. AMC has about 950 theaters and 10,500 screens worldwide. More

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    Netflix Adds 2.4 Million Subscribers, Reversing a Decline

    Netflix, which has about 223 million subscribers worldwide, will soon introduce a lower-priced service with ads in a bid to attract more customers.Netflix said Tuesday that it added more than 2.4 million subscribers in the third quarter — mainly from outside the United States — snapping a streak of customer losses this year that spurred unease among investors and questions about how much more the streaming business could grow.The streaming giant said it now has 223 million subscribers worldwide, after beating its earlier forecast of about one million additions for the quarter. Netflix lost 200,000 subscribers in the first quarter, and nearly one million in the second.“After a challenging first half, we believe we’re on a path to re-accelerate growth,” Netflix said in its quarterly letter to shareholders. “The key is pleasing members.”Netflix is preparing to introduce advertising on its service on Nov. 3, part of a bid to attract more customers with a lower-cost subscription. The advertising-supported tier, priced at $6.99 a month in the United States, will show subscribers four to five minutes of ads per hour of content they watch.Netflix generated about $7.9 billion in revenue in the third quarter, a nearly 6 percent increase from the same period last year. The company generated about $1.4 billion in profit, a 3 percent decrease from a year earlier.The Race to Rule Streaming TVNetflix Ads: The streaming company said it will soon offer a cheaper ad-supported subscription, which will show people four to five minutes of ads per hour of content they watch.Late-Night Talk Shows: TV executives are mulling the future of the genre, which is struggling to make the leap to the streaming world.Apple’s Will Smith Movie: After a long discussion, Apple said it will release the film “Emancipation” — the actor’s first since his infamous slap at the Oscars — in December.Cable Cowboy: The media mogul John Malone opened up about the streaming wars, the fast-changing news business and his own future.Netflix shares were up more than 10 percent in after-hours trading.Netflix said in its letter to shareholders that it expected to add 4.5 million subscribers in the fourth quarter, a 46 percent decrease from the 8.3 million subscribers it added during the same period last year. Netflix also said it would stop providing guidance to investors on its projected subscriber count beginning next quarter.Rich Greenfield, an analyst for Lightshed Partners, said the results indicated that Netflix would flourish as competitors continue to lag behind.“I think the reports of streaming’s death or maturity have been greatly exaggerated,” Mr. Greenfield said.The decision to introduce an advertising option on Netflix was an about-face for the company, which for years had highlighted its ad-free experience as a selling point for customers. But this year, after announcing subscriber losses on the company’s first-quarter earnings call, the co-chief executive Reed Hastings reversed course, saying that an advertising-supported plan would allow customers to choose their experience.Streaming has become an increasingly competitive industry in recent years. Disney, for instance, reported in August that it had about 221 million subscriptions across its bundle of services. It will start offering a lower-priced advertising tier for Disney+ in December.Mr. Hastings expressed relief about the company’s financial results during a video interview conducted by an analyst that was posted by Netflix on Tuesday evening.“Well, thank God we’re done with shrinking quarters,” Mr. Hastings said, laughing.Netflix is breaking with convention in other ways this fall. The company plans to release “Glass Onion: A Knives Out Mystery” in 600 theaters across the United States for one week beginning on Nov. 23 ahead of its streaming debut, the first time the company has struck a deal with the nation’s largest theater chains at once. The movie, written and directed by Rian Johnson, is the anticipated follow-up to the 2019 hit starring Daniel Craig as the Delphic detective Benoit Blanc.Netflix told employees this year that it was also planning to crack down on password sharing, which allows users to watch content without paying for a subscription. The research firm MoffettNathanson estimates that 16 percent of Netflix users share passwords, more than any other major U.S. streaming service. Netflix said in April that passwords were being shared with an additional 100 million households, according to its estimate.The company has also cracked down on costs. In May, Netflix laid off about 150 workers across the company, primarily in the United States, or about 2 percent of its total work force. Netflix said in a statement that the cuts had been spurred by the company’s slower revenue growth.Despite the changes, Netflix hasn’t yet been able to reverse a precipitous decline in its share price. The company’s stock has tumbled more than 60 percent over the last year amid a broader market slump, as investors and analysts grapple with the economics of streaming video.During the third quarter, Netflix released a mix of films and TV shows, including “The Gray Man,” a big-budget action film starring Ryan Gosling and Chris Evans and directed by Joe and Anthony Russo, the sibling filmmakers behind “Avengers: Infinity War.” Other popular titles included the serial killer show “Monster: The Jeffrey Dahmer Story”; the romantic drama “Purple Hearts”; and “Stranger Things,” which released the second half of Season 4 near the end of last quarter. More

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    How Much Would You Pay to Hear Great Music?

    With ticket prices for performing arts rising, could fresh approaches like pay-what-you-can increase access and foster more adventurous programming?“I’m a cellist, and I have played in orchestras my entire life,” Blake-Anthony Johnson, the president and chief executive of the Chicago Sinfonietta, said recently. “I used to ask the other musicians, ‘What is the most you would pay for your ideal concert?’ And it was nowhere near what our patrons actually pay.”Johnson was describing a slow-moving crisis in the performing arts: Ticket prices have risen far more precipitously than most Americans’ earnings — to say nothing of the seductively low cost of streaming services at home.This rise doesn’t just trouble short-term sales. It also affects the long-term health of arts organizations, which depend on the philanthropic support of patrons who have generally built close relationships with the objects of their giving.“I have long been concerned that ticket prices present a barrier to newcomers who are curious, and a barrier to inciting habitual attendance,” said Marc Scorca, the president and chief executive of the trade organization Opera America, noting that kind of habit can lead to later giving.“High ticket prices are a disincentive to experimentation, and they raise the level of expectation,” he added. “And the higher the price, the less likely that expectations will be met, leading to disappointment.”It’s axiomatic: High ticket prices are barriers at a time when organizations need their doors to be open ever more widely. And dependence on ticket sales also hobbles programming innovation. (In Europe, where arts institutions receive sometimes substantial public subsidies, ticket sales are a far smaller percentage of budgets, so artistic decisions don’t have to prioritize attendance.)But could new approaches to ticketing work to increase access and foster more adventurous programming?“Removing socioeconomic barriers is one of those things we have to be ahead of,” said Johnson, whose Chicago Sinfonietta introduced a pay-what-you-can ticketing approach last season. “I sleep really well at night, to have someone say, ‘I’m able to bring my family to these concerts.’”Experimentation in this area has been spreading in the theater world. Most recently Ars Nova, the prominent Off Broadway incubator, announced that it would move to a pay-what-you-want model for the coming season.In classical music, this kind of initiative has been far rarer, with the Sinfonietta leading the recent charge. But a much larger and more influential institution, Lincoln Center, threw down a gauntlet this summer, when it made the Mostly Mozart Festival Orchestra’s brief season choose-what-you-pay.The results were heartening. According to the center, 90.5 percent of tickets were sold for the concerts, which took place at Alice Tully Hall since the orchestra’s usual home, the larger David Geffen Hall, was being renovated.The suggested ticket price was $35, but the average paid was just over $19 — compared with almost $60 during the orchestra’s 2019 season, when face value ranged from $35 to $90. Sixty-three percent of Mostly Mozart ticket buyers this summer were first-timers to a Lincoln Center presentation (though not, perhaps, to the center’s constituents, like the Metropolitan Opera or New York Philharmonic).Of course, many institutions have reduced-price tickets available for students or seniors, or for last-minute buyers. And increasingly some have subscription-style programs that make cheaper tickets available for a monthly or annual fee. But those programs effectively penalize newcomers and occasional ticket buyers. And what about those who aren’t students or seniors, but are still challenged by rising prices?“I find it really odd that we subsidize tickets for youths and senior citizens,” Johnson said. “There is a very large group of people in between. What I’m suggesting is that we have the kind of relationship with the community in which we are a public service and want to be a part of your life regardless of whether you’re giving us money.”As Renee Blinkwolt, the producing executive director of Ars Nova, told The New York Times when that company’s new pricing policy was unveiled in August: “It’s not income based, it’s not age based, there’s no demographic basis. It’s just radically accessible — the doors are wide open to any and everyone to pay what they will.”The rise of dynamic pricing — in which ticket prices fluctuate based on demand — is spreading beyond the commercial theater world. This can help maximize revenue for institutions when they have a hit.But it can also do a disservice to audiences and the long-term fate of presenters. Aficionados are probably less likely to be purchasing tickets at the last minute, when in a dynamic pricing situation they’ll be most expensive. So relative newcomers will disproportionately be the ones stuck needing to pay a premium, when they should be most diligently targeted with discounts. (For this reason, the Metropolitan Opera did not employ dynamic pricing during its highly successful run of “Fire Shut Up in My Bones” last season.)The obvious solution would be for institutions simply to systemically lower prices — without expecting patrons to comb through websites for special ticketing programs or know how to game the dynamic pricing system.One way to lower prices is to eliminate ticket revenue as a factor in budgeting. Yes, that sounds extreme: When Emilee Syrewicze, the executive director of Opera Grand Rapids in Michigan, told her board earlier this year that their company was going in that direction, there was a little freakout.“Their first thought was, We’re no longer selling tickets,” Syrewicze said.What she was envisioning, though, was something different. Syrewicze had realized that the company’s ticket sales, as at many small and midsize institutions, were bringing in only a small portion of the budget: in the case of Opera Grand Rapids, around 15 percent. She also saw that the company consistently lacked a steady source of income to direct toward new projects and new works.What if, she thought, the opera reorganized its finances — and juiced its fund-raising to compensate — so that all of the money from ticket sales would be devoted to creative programming? In other words, as she put it: “What if we had a couple hundred thousand laying around?”When she explained to the board that the company was not simply disappearing the ticket revenue, but was planning to put it into other programs — and that the change would happen gradually over a few years, starting this fall — the members calmed down.“The freakout was only momentary,” Syrewicze said with a laugh.In Grand Rapids, the goal is not to lower prices, which are already cheap and addressed by several accessibility programs. But other organizations could use the same strategy as a model for price reductions: If ticket revenue doesn’t matter, tickets can be cheaper.Small or midsize institutions may well have an easier time experimenting, because if changes to ticket strategy are going to work without cutting budgets, donations will need to rise to fill the gap. That said, smaller organizations also tend to have less fund-raising prowess; the Stavros Niarchos Foundation supported the Mostly Mozart pilot program this summer, and Syrewicze and her new development director are confident that their city — which has a notably strong philanthropic record — will support their experiment.But it is still a gamble, and it requires a rethinking of the entire organization around a goal of lowering prices.For larger companies that sell more tickets, and those that still look to ticket sales as a bigger percentage of their budgets, the losses — and increased pressure on fund-raising — might not be workable. And as Johnson pointed out, the very configuration of most concert halls, in hierarchical tiers, resists truly democratic approaches to pricing.But Lincoln Center has shown that even the biggest organizations can at least experiment in this area, embracing the radical accessibility espoused by Ars Nova and opening the door to broader audiences of their own while providing inspiration for the rest of the field.There is still work to do. Syrewicze said she didn’t know of other organizations doing truly creative thinking in the pricing area, though a couple of her colleagues approached her to learn more after she had presented what she was working on in Grand Rapids at an Opera America meeting.“They liked the sound of it, but we like the sound of a lot of things,” she said. “How things translate to a budget is totally different. Because of our size and because we keep ourselves lean, we’re comfortable experimenting with this.”Of course, even if ticket prices came down, it wouldn’t solve all of the problems faced by orchestras and opera companies seeking to build their audiences and secure their donor bases.“When we’re talking about folks who have not come to the opera generally, price is not the only barrier,” Scorca said. “We should not kid ourselves that lower ticket prices will make people feel totally comfortable. But it is a potent, tangible, identifiable barrier.”Just the same, it would be unfortunate if the fact that lowering prices won’t solve everything keeps it from solving anything.“Let’s see what happens,” Scorca added. “It doesn’t have to be all or nothing in an experimental mind-set.” More