The changes for Cinmark's Theater at Lexington Green go into effect on Friday.
Theater officials say they hope the move will draw in more customers.
Neighboring businesses say they hope the change will bring in more foot traffic to their stores.
All seats at the theater will now cost $1.50, with discounts offered for seniors and families.
The Kentucky Theater, on East Main, will now be the only theater in Lexington, showing artistic films.