Symphony Re-pricing Protest Heats Up
My issue with the Seattle Symphony re-pricing of the Third Tier (formerly the cheapest seats in the house) is not a price increase per se, it's
- the automatic re-seating of all Third Tier subscribers to inferior seats in Orchestra Section D
- the magnitude of the increase (250%), making them second-most expensive seats in the house
There has been press coverage locally in both papers here and here.
As a symphony supporter, I would never begrudge the Symphony a revenue-increasing opportunity. But what I think they may not understand is the nature of the demand for Third-Tier seats. I strongly suspect the demand is based on the historical pricing of those seats (the least expensive in the house). The new pricing scheme prices the Third Tier seats significantly higher than seats in the Second Tier and at the same pricing level as the Founders Tier. I've never seen an arts organization price the "nosebleed" seats in this manner.
I am sure someone at the symphony has done some sort of theoretical price vs. demand curve on this change, but what I think they are missing from the formula (among other things) is the word-of-mouth impact of a maneuver that feels very much like bait-and-switch. In our subscription renewal package, the materials did not even include the option to retain the seats we've held since the hall opened in 1998. Sure, if you read the small print, you see you can call the ticket office to get information about retaining your current seating -- but that is certainly not obvious until you read the materials carefully.
I just think the symphony has completely shot themselves in the foot with this.
Comments
Honestly, it breaks my heart to see them alienate their long-time subscribers and supporters. I think they need to re-think this strategy pronto -- sticking by it is only going to continue to hurt them as an organization.