MoviePass Sees Boom with Price Cut

In the US, movie theatres are clearly seeing the pressure. The Moviepass ‘all you can eat’ monthly pass for film viewing, which was originally launched in 2011, has seen its subscription base jump from 20,000 at the end of last year to 150,000 now, with the 2018 targets exceeded. The demand took the company by surprise and caused problems on the firm’s website. Previously, passes were from $15 to $50.

Analyst Comment

The idea of a $10 pass is appealing, but MoviePass admits that it is losing money at the moment and AMC has said that it will try to block the pass (which is a debit card that only works in theatres). However, it will not work for 3D movies or Imax screenings and bookings cannot be made – with the pass accepted only where there is space. The company was recently taken over by Helios and Matheson Analytics Inc according to Variety. It is run by an exec that came from Netflix in the early days.

Some commentators have pointed out that movie theatres make their money from the sale of confectionery and other items, so the see the move as possibly encouraging more sales of these items. (BR)