Exhibs end tix price flap
Ster-Kinekor, Nu-Metrohas reach agreement
In an attempt to grow long-stagnant cinema auds, Ster-Kinekor in mid-March halved ticket to R14 ($2.15) at 80% of its cinemas, retaining the old price of $5.90 at only seven cinemas, which were upgraded and rebranded as Ster-Kinekor Classic "luxury" venues.
Nu-Metro responded by dropping its prices to R12 ($1.80) at all its cinemas as an "interim competitive measure" -- and then Nu-Metro Film Distribution, the local distrib for Warner and Fox movies, turned the screws on an irate Ster-Kinekor by demanding a minimum payment for each seat, regardless of the ticket price.
This effectively increased the distrib charge and made it impossible for Ster-Kinekor to show popular new Warner and Fox releases at its budget Ster-Kinekor Junction cinemas. But despite what it called the "attempted sabotage" of its plan, Ster-Kinekor decided to stick to its "long-term business strategy to grow auds."
In line with the compromise deal announced by Ster-Kinekor chief executive Ferdi Gazendam, six of the existing budget Ster-Kinekor Junction theatres will be converted into Classic cinemas to add to the seven already in operation, while Nu-Metro Film Distribution will distribute its releases to Ster-Kinekor in terms of the previous pricing structure.
"The agreement means that Ster-Kinekor will now show all movies at all its cinemas as originally intended when our new cinema pricing strategy was launched," says a pleased Gazendam.
