Why Dynamic Pricing for movie tickets might be a hard sell?

People aren't going to the movies as much anymore. Are they staying away because of the Covid-19 pandemic, the films are duds, or is it because tickets are getting too expensive? AMC is making a bet that cost, not quality, is behind this downturn. Last week, the country's largest exhibitor announced it will be testing a new pricing initiative in which it will charge a premium for movies that are "of the highest appeal." In turn, less in-demand films will be cheaper. For now, AMC will limit the pricing model to 30 venues across four cities Boston; Columbus, Ohio; Indianapolis; and San Diego. The surcharge will be between 50 and $1.50. "Think of it being applied, let's say, to one or two movie titles each month," AMC chief Adam Aron explained. "This is basic economic theory that goes back to the first microeconomics course we all might have taken in college: Charge more in peak periods and charge more for high-demand products, but charge less in the off-peak." Aron's bold gambit comes as box office receipts are struggling. Prior to the Covid-19 pandemic at the start of 2020, the domestic market had slid more than 6% from the same time in the previous year. The downturn had exhibitors reigniting conversations about variable pricing, where the cost fluctuates depending on the movie or time of day. The hope is that reduced fees encourage audiences to see more than just the next Marvel movie. While dynamic pricing works for airline and concert tickets and is commonplace in exhibition across Europe and parts of Asia it has historically been a point of contention for the movie business in North America. With the exception of Disney, every major Hollywood studio is finding it ever more difficult to make movies that people want to see. It's not that audiences are averse to going to multiplexes. Blockbusters, particularly those of the superhero ilk, are still smashing box office records. Disney-Marvel's "Avengers: Endgame" became the highest-grossing movie in history, and fellow studio releases like "The Lion King" and "Aladdin" have cruised past the billiondollar mark globally. The more intimate dramas and comedies, the kind that seem to populate Netflix queues, are a harder sell.

Provide TWO (2) examples from the case study that defend use of this type of pricing strategy.