China's Group Buy Sites Face Limits on Movie Ticket Discounts
Tencent Tech, 2/27/12
China's State Administration of Radio, Film and Television (SARFT) has issued regulatory guidance proposing movie ticket prices for theater members and groups may not be offered at less than 70% of the listed price, prompting group buy websites to call on SARFT to rationally assess group buy deals on movie tickets.
Movie tickets have been one of group buy sites' most popular types of deal, with 60-70% discounts dropping prices to approximately RMB 30.
According to one group buy site employee, the industry is adopting a wait-and-see attitude since the proposed regulations are currently open to public feedback and have not been implemented. Inquiries with several group buy sites revealed that movie ticket deals are still popular, with a single deal typically receiving several thousand orders. The aforementioned source said that according to internal industry data, group buy deals accounted for 9% of all movie tickets sold in 2011.
According to a source at group buy site 55Tuan, group buy sites can reach large numbers of users, particularly those that don't typically go to movie theaters. While group buy ticket prices are comparatively low, the source said it provides a better alternative to empty seats during the low season for movie theater operators.
Li Yunlong, PR director of group buy site Ftuan, pointed out that group buy should be a channel for merchants to develop new customers rather than target existing customers. Meituan VP Wang Huiwen said that some low-priced movie theater chains need to use group buy deals for marketing purposes.
Keywords: Li Yunlong film Internet SARFT Wang Huiwen group buying regulation
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