MoviePass is once again cutting their prices, with the hope of attracting more customers to their subscription service. The service was initially offered at a little under $10 a month, which allowed subscribers to see a movie every day for a month. The temporary price cut is now at $6.95 a month. Both deals are less than the price of a single ticket in certain markets such as Los Angeles and New York City.
The average movie ticket price across the U.S. last year was $8.97. The new price is only available for new users. The company attracted more than 2 million customers since last summer, when they lowered their price from $50 a month.
While they are able to attract moviegoers, they are making enemies in the process. Movie theater chains like AMC blasted MoviePass and their business model. According to Variety, MoviePass pays full price for every ticket their subscriber buys, subsidizing their theater visits. MoviePass has not made public any of their financial information. However, some financial observers believe the company is operating at a loss.
I’ve had my MoviePass for exactly 3 months and I’ve seen 21 movies with it #holla
— lindSLAY (@LindsTheMormon) March 24, 2018
MoviePass is looking for ways to increase revenue
Screencrush has said that MoviePass says they are collecting valuable data on their subscribers, which they plan to sell to theaters or studios, leading them to eventually make a profit.
MoviePass has said that they are working to diversify their revenue streams through marketing deals with studios and film companies, as well as partnering with theater chains. MoviePass recently made a deal with Landmark Theatres, allowing them to expand their reach.
MoviePass CEO Mitch Lowe released a statement saying that the company is dedicated to making the moviegoing experience easy and affordable for everyone. Lowe also said that the recent price cut is a result of its growth and support from new partnerships and exhibitor revenue. Last summer Helios and Matheson Analytics bought a majority stake in the company.
MoviePass has dealt with some hiccups
Lowe is hoping to reach 3 million subscribers by this summer.
They also want to renegotiate a deal for more cuts of the concession revenue. MoviePass currently has a concessions deal with some theater chains. While its been a successful service, it has dealt with some bumpy patches including long delays in bringing in new customers. While continuing to run at a loss, Lowe says that the company expects to break-even early next year.
