Cineplex to make online tickets purchase fee more obvious
Cineplex Inc. to Adjust Online Ticket Purchase Fee Communication
In response to a hefty penalty of $38.9 million issued by the Competition Tribunal, Cineplex Inc. has announced that it will continue adding a fee to some online ticket purchases but will make adjustments to how the charge is communicated to moviegoers. The penalty was imposed due to allegations that the way Cineplex presented online booking fees to consumers was deceptive marketing.
Cineplex’s Chief Executive, Ellis Jacob, stated in an interview that the tribunal’s concern was not with the fee itself but with how it was displayed on the website. The company has agreed to make modifications to make it more transparent to customers. The $1.50 online booking fee, which has been in place since June 2022 for customers not enrolled in Cineplex’s CineClub subscription and Scene Plus loyalty programs, will now be clearly communicated. Customers enrolled in these programs have the fee waived or reduced to $1.
The Competition Bureau, which initiated the case against Cineplex, argued that the fee misled theatregoers as they were not immediately shown the full price of a movie ticket when booking online. However, Cineplex maintains that customers are informed about potential fees and have the option to avoid them by purchasing tickets in-person at the theatre.
While Cineplex is appealing the penalty, Jacob remains confident that the company will prevail. The Federal Court of Appeal is yet to schedule the hearing for Cineplex’s rebuttal.
The financial impact of the penalty was evident in Cineplex’s third-quarter results, which showed a loss of $24.7 million or 39 cents per diluted share, compared to a profit of $29.7 million or 40 cents per diluted share in the same period last year. The decrease in revenue was attributed to the performance of blockbuster movies, with “Deadpool & Wolverine” facing tough competition from “Barbie” and “Oppenheimer.”
Despite the challenges, Cineplex saw an increase in box office revenue per patron and concession revenue per patron compared to the previous year. Jacob credited this growth to enhanced features in the company’s mobile app, such as online snack ordering for in-theatre pickup and popcorn deliveries.
Overall, Cineplex remains committed to providing a seamless moviegoing experience for its customers while addressing concerns raised by regulatory authorities. The company’s focus on transparency and customer satisfaction will guide its approach to online ticket purchases in the future.
