Movio, part of Vista Group – a global leader in providing software and technology solutions across the film industry sectors of distribution, exhibition, and moviegoers – has revealed research findings from a study that proves the positive impact concession
discounts have on moviegoer spend and behaviour.
The study sought to uncover several things, including whether targeted concession discounts could increase the amount moviegoers spend per visit, increase the number of items purchased, positively influence visitation, and generate concession sales from moviegoers who typically did not purchase concessions.
To answer these questions, Movio conducted a trial between November 2021 – March 2022 with two US exhibitors involving over 28,000 moviegoers. The study tested the different impact that $1, $2, and $4 discounts on large-sized popcorn had on moviegoer purchases. Each exhibitor used four groups in total, including one control group, with all participants consisting of moviegoers with historically lower ratings of spend-per-admit. These were identified through past behavioural data.
Interestingly, the study found that the $2 discount performed better overall than the $4 discount. This is a welcome result for the industry, as it shows higher discounts are not necessarily more effective.
The findings also indicated concessions discounts could increase the overall amount moviegoers spend each visit, with up to a 17.6% increase in spend-per-admit, and also proved that concession discounts could increase the number of concession items purchased overall.
The two moviegoer groups in the trial were ranked in the lowest 25% in terms of historical spend-per-admit, but the discounted popcorn produced a 44.1% and 37.1% increase in spend-per-admit, respectively.
The research found that discounted concessions could positively influence visitation. While the trial ran during a restricted window of time, with a relatively limited film slate, the results still showed an uplift in visitation rates. This was calculated by monitoring visitation rates when participants received the discount offer in advance. The $4 discount produced a visitation rate of 39.3% compared to 36.3% for the control group; the same discount also demonstrated a slight visitation rate increase for group two, with 30.9% from 29%.
Ultimately, the research indicates promising insights for exhibitors to capitalise on – namely:
- Discounted concessions can increase overall spending during cinema visits; and
- Discounted concessions can motivate moviegoers who do not usually buy concessions to take advantage of a discount and spend on concessions.
“Our goal is to help our clients and the industry to answer challenging business questions such as ‘does discounting concessions cannibalize spend’?” says Sarah Lewthwaite, Movio CEO. “Movio is uniquely positioned to generate research like this study, and we are thrilled with the actionable insights it will provide.”
For more information, check out the full study results here.
Movio is the global leader in marketing data analytics and campaign management solutions, revolutionizing the way the film industry interacts with moviegoers. Movio is the world’s most comprehensive source of moviegoer data and has products designed specifically with the challenges of movie marketing in mind. Movie lovers at heart, it’s our mission to connect everyone with their ideal movie. Movio is a company of Vista Group International Ltd (NZX & ASX: VGL).
Vista Group International Ltd (Vista Group) was founded in New Zealand in 1996 and listed on both the New Zealand and Australian stock exchanges in 2014 (NZX & ASX: VGL). Vista Group provides software, data and technology solutions across the global film industry. Vista Entertainment Solutions, the original business of Vista Group, provides cinema management software and digital solutions for large cinema circuits and, with Veezi, also for independent cinemas. Movio (authority in moviegoer data analytics), Maccs (film distribution software), Numero (box office reporting software for film distributors and cinemas), Powster (creative studio and marketing platform for movie studios) and Flicks (moviegoer ‘go to’ app and platform for movie and streaming information) provide an innovative range of complementary products across additional film industry sectors, from production and distribution, to cinema exhibition, through to the experience of the moviegoer. Vista Group has offices located in New Zealand (Auckland HQ), Los Angeles, London, Mexico City, Sydney, Cape Town, Amsterdam, Groningen, Timi?oara, Shanghai, Beijing, and Kuala Lumpur.