C.

PRICING STRATEGY

The entertainment industry is a large and dynamic sector that comprises a wide range of products and
services, from movies and music to live events and streaming platforms. Pricing strategies in the industry
focus on two points: balancing profit and accessibility. Pricing in this sector is quite important since it
affects not only how profitable these goods are but also how accessible they are to a range of customers.
This examines the complex world of pricing in the entertainment industry, highlighting the key factors,
challenges, and strategies involved.

Finding the difficult balance between generating revenue and ensuring accessibility is one of the
fundamental factors in determining how much entertainment to strike. On the one hand, businesses in
the entertainment industry strive to maximize their profits, and they frequently use a variety of pricing
schemes to do so. Accessibility, on the other hand, is a crucial issue. Due to lockdown, many customers
in the era of digital media demand easy access to affordable entertainment. The industry is also
becoming more conscious of the need to address issues of equity and inclusion and reach
underrepresented consumers. This has resulted in initiatives like reduced ticket prices for seniors,
students, or low-income people as well as the availability of free, ad-supported streaming services.

PANDEMIC

In the entertainment industry pricing varies across different sectors and can be influenced by internal
and external factors. Before the COVID-19 pandemic, various pricing strategies were commonly
employed in different industries. When the pandemic started, many businesses adjusted their pricing
strategies to adapt to the changing economic landscape, shifting consumer behaviors, and restrictions.
To address these types of challenges, the entertainment industry employs their pandemic-oriented
pricing strategies in different fields in the Entertainment Industry.

1.) SPORTS

New pricing of arena tickets: The increasing price is the cause of the use of a variety of technologies to
get a wholesome experience inside the coliseum during the game and will take a lot of processes to
undergo to ensure the safety of the market.

2.) APPS
E-Payment: During the pandemic online transactions of payment gained more attention from companies.
The sending of money through the use of e-payment becomes more accessible and convenient due to
protocols.

3.) LITERATURE

E-Book: Because libraries were unable to operate during the epidemic, numerous reading applications
saw an increase in popularity.

Premium accounts in reading apps: Instead of membership promos for private libraries, for a better
reading experience, the marketers used a subscription strategy, special bundles, and various seasonal
discounts for e-book apps.

It’s important to understand that pricing methods were significantly impacted by the pandemic. While
some industries adjusted by providing discounts, unique packages, or flexible cancellation policies,
others encountered difficulties in revenue management as a result of shifting demand and restrictions.
Businesses continue to adjust and develop their pricing strategies as the world recovers from the
epidemic in order to satisfy shifting customer expectations and market realities.

NEW NORMAL

With the emergence of the “new normal,” which has been influenced by a variety of factors, including
changes in consumer behavior, technological advancements, and the effects of major world events like
the COVID-19 pandemic, the entertainment industry has undergone significant changes in recent years.

The entertainment sector has frequently used fixed price structures. Additionally, as more people turned
to home entertainment during the COVID-19 pandemic, digital distribution and streaming gained
popularity faster. To appeal to a wider audience, entertainment companies had to quickly adapt by
striking a balance between affordability and quality. The entertainment business uses pandemic-oriented
pricing techniques in several areas of the industry to handle these kinds of problems.

1.) THEATER
Variable Pricing: This allows theaters to adjust prices to attract audiences during off-peak times or
provide discounts for less desirable seating options.

Pay-What-You-Can: This approach aims to make theater more accessible to a wider range of people,
especially during challenging times.

Subscription Packages: This provides financial stability for theaters and incentivizes audience members to
commit to attending multiple performances.

Online Ticketing: These platforms often offer convenience and flexibility for purchasing tickets, allowing
audiences to select preferred dates and times.

2.) VIDEO GAMES

Web3 Technology: Developers focus on the needs of their market, they create hyper realistic graphics,
high definition effects and adopt web3 technology in the industry that’s why it’s much more expensive to
develop but it can give a more comfortable and better gaming experience.

Subscription-based games: This type of services like Xbox Game Pass and PlayStation Now, offered
gamers access to a library of titles for a monthly fee. This move away from individual game purchases
has reshaped how consumers access and pay for entertainment.

3.) TOURS AND ATTRACTIONS

Full pack promos: The prices went up because they brought back the package inclusions.

Example:

-For 1 night stay you will have free food -Promos like buy 5 tickets for a certain place then get 1 free.
 4.) MUSIC

Freemium: Many platforms offer a basic service for free and charge for premium features or an ad-free
experience. This approach has become prevalent in the music streaming industry, and it has allowed
services to expand their user base while still generating revenue.

The new normal in the entertainment sector has resulted in a reevaluation of pricing tactics, to put it all
up. Companies have been able to respond to changing consumer preferences and market situations
thanks to the move away from fixed pricing and toward more flexible models, like tiered subscriptions
and freemium services. Pricing strategies will remain a dynamic and crucial element for success in the
constantly shifting entertainment market as the industry continues to develop.

In conclusion, setting prices in the entertainment sector is a complex process where the delicate balance
between profitability and accessibility is constantly put to the test. The financial success of the
entertainment industry and consumer satisfaction depend on finding the appropriate balance. Pricing
methods will continue to change to fulfill the needs of both producers and customers in an industry
characterized by quick technology improvements, shifting consumer tastes, and market dynamics.