MoviePass is a subscription based movie ticketing service that recently dropped its prices and looks to provide moviegoers a more affordable way to see films in theaters.
The company has been in operation since 2011 and is run by Netflix co-founder and former Redbox president Mitch Lowe, who took over in 2016.
Subscribers are allowed to see one movie a day, at many of the large theater chains including Cinemark, Rave and AMC. They can potentially see 30 movies over a month for the price of one. MoviePass states that they are connected to over 91 percent of theaters in the U.S.
However they have to pay for their food and drinks, and can only purchase the tickets on the day of the showing using the MoviePass app when they are within 100 yards of their preferred theater.
Also, only basic 2-D movies are available with MoviePass. Imax, 3D and any other format that costs more than a regular ticket is not included in the plan. Moviegoers can also see movies at any time, even opening night, so long as there are tickets available.
MoviePass originally was priced in tiers that ranged from $15-50 a month until the price was changed to $9.95 a month in August when the company sold a majority stake to Helios and Matheson Analytics Inc., a publicly traded data firm.
The service operates by buying movie theater tickets for subscribers directly from theaters at normal asking price. This means that they are operating at a loss but are looking to use data to create revenue, in more ways than one.
“This is about getting funded in order to launch our new price point,” Lowe said in an interview with Variety. “After years of studying and analysis we found that people want to go to the movies more often, but the pricing keeps going up, and that prevents them from going more. We’re making it more affordable for people.”
The company’s goal to earn money is to show the movie theaters data that confirms MoviePass helps their customer base grow. Lowe hopes this encourages them to cut MoviePass in on the profits.
“We’re hoping that if we can drive a meaningful increase in attendance we can share in that success,” Lowe said.
Another way the company hopes to generate revenue is by selling data; including general moviegoer data as well as specifics about their viewing habits. Google and Netflix practice similar methods of data collection.
The new approach to MoviePass is in response to a 2017 box office year that has disappointed. Five big theater companies have recorded losses, and less people are going to the movies, especially millennials due to the high cost of tickets. AMC Theaters in particular recorded a 26 percent loss.
“We serve Millennials who have grown up with Netflix and other subscription models,” Lowe said. “They like that model.”
MoviePass has said that 75 percent of subscribers are millennials. They are the largest demographic subscribed to the service.
The service had 20,000 subscribers in August before the new price was announced. As of October, there are now 600,000 subscribed to the service.
However, some of the theater chains are not happy with the deal. AMC Theaters especially is against the service and announced that MoviePass was “not welcome here” in a press release.
AMC stated that they would try to find a way to opt out, as it believes lowering the cost of ticket prices would devalue the theater-going experience overall.
While MoviePass isn’t the most convenient way to get movie tickets, it does provide a cost affordable to many movie buffs, either in college or outside of it.
Henry Wolski
Executive Editor