31 Jan 2016
Studios Back App, Hoping to Fill Cinema Seats
Led by alumni cofounder, new ticket app has plans to offer dynamic pricingTopics:
Backed by $50 million in capital from three movie studios, startup Atom Tickets is planning a nationwide launch this summer, reports the Wall Street Journal.
Cofounded by Matthew Bakal (MBA 2004), Atom is entering a market as “first serious challenge to Comcast Corp.’s Fandango.” In addition to making group sales easier, the new company will allow for dynamic pricing for movie tickets:
Theaters set ticket prices, though studios typically set the minimum revenue they will accept per ticket sold, which can make discounts difficult.
“We think it’s a place theaters will evolve to and we’re going to keep testing it,” said Mr. Bakal, adding that variable pricing won't be among the company’s offerings when it launches nationwide.
Atom Tickets has been operating in three test markets since April, where the great majority of users are in the 18-40 age range—a contingent whose movie ticket purchases have been declining in recent years.
Class of MBA 2004, Section C