Ever since MoviePass announced it’s $10 a month (right now an amazing $7.95) subscription service it’s been the talk of the town. It was such a huge success that MoviePass’s site crashed once it was announced.
Even after the subscription service announced that it was cutting off access to some AMC theaters they still managed to gain 500,000 new subscribers on top of the 1.5 million users the company has already.
A MoviePass subscription allows owners to see one 2D movie a day, every day without having to pay anything extra. MoviePass users have already bought $110 million worth of movie tickets back in 2017. A huge plus is that non-members that accompany subscription holders to theaters generated $146 million in additional tickets sales.
Here is what MoviePass CEO, Mitch Lowe had this to say about the companies current success:
“We’re giving people a reason to go back to the movie theaters, and they’re going in droves. With awards season here, we hope we can make Hollywood and exhibitors very happy by filling seats with eager audiences.”
If this convenient service does sound too good to be true in essence it is. This current system might prove to be too difficult for the company to keep up. MoviePass loses money for every member who watches two movies a month, accountants have already the company this may not serve well for them in the long run. Giant movie theater chain AMC has already called MoviePass’ current business model unsustainable with them already comparing it to turning “lead into gold” in a statement.
So how does MoviePass plan to combat this? They may turn to selling ads, merchandise, and data on moviegoers habits and hopes to get a cut of the refreshment sales. Unfortunately for them, AMC’s CEO, Adam Aron has already expressed his criticisms as well and is on the record saying his chain has no plans of sharing its admissions or concessions revenue.
It’s all a long shot, but it sounds like moviegoers interested in joining the service better get involved now while the getting is still good. I already did.
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