AMC Entertainment Stock Is Trading Lower Thursday: What's Going On?

AMC Entertainment Holdings Inc AMC shares are trading lower. The company on Thursday announced plans to abandon its seat-based pricing initiative.

What To Know: Following a test pilot program, AMC said more than 75% of AMC Stubs members who previously purchased tickets in preferred Sightline sections continued to select those seats after prices were raised. 

A little over 10% of members selected a seat outside of the section that included additional charges and the company saw little to no lift in front-row attendance, even after reducing prices for those seats.

To remain competitive on ticket pricing, AMC said it will not continue the pilot program at the test locations and it will abandon its plans to roll out seat-based pricing nationwide. 

AMC is now planning a new initiative in which it will test enhanced front row seating to try to increase attendance in the first row at theaters.

"Beginning in late 2023, AMC will begin testing its newest seating concept. Large, comfortable lounge style seating areas will allow guests to lay all the way back and relax. The angle of the seats will also make it more enjoyable to watch movies from these front row seats closest to the screen," the company said.

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AMC Price Action: AMC shares are down nearly 60% over a one-year period, but the stock is up about 5% year-to-date.

AMC shares were down 2.55% at $4.26 at the time of writing, according to Benzinga Pro.

Photo: Jon Seidman from Flickr.