Can The MoviePass Model Of Unlimited Tickets For $10 Per Month Last?

Can The MoviePass Model Of Unlimited Tickets For $10 Per Month Last?

Can The MoviePass Model Of Unlimited Tickets For $10 Per Month Last?

The $10-per-month MoviePass plan has already attracted a flood of new customers, with the massive interest actually crashing the subscription service's website.

Via Business Insider, MoviePass has sold a majority stake in the company to Helios and Matheson as part of its new initiative.

The company is guaranteeing its $9.95 price for 12 months.

AMC Theatres issued a strongly worded statement Tuesday afternoon, saying that MoviePass is "not welcome here" and that they were exploring ways to opt out. Heck, I'll even go out on a limb and say that it'll probably fail lover the long haul (assuming it can get off the ground at all).

MoviePass is using the capital injection from the sale to fund an overhaul to its pricing model.

MoviePass, a Netflix-style subscription service for new movies, will charge only $10 per month to allow members to watch one movie everyday in theaters.

"MoviePass will be paying the full price of every ticket sold at theaters, with the exception of IMAX or 3D", Farnsworth wrote. But exhibitors have preferred to bolster their own loyalty programs instead of aligning themselves with the service.

Per Variety, AMC's claim is basically that what MoviePass-which buys tickets from the theaters at regular retail prices, and then passes them off to subscribers-is offering is literally too good to be true. AMC believes that holding out to consumers that first run movies can be watched in theatres at great quantities for a monthly price of $9.95 isn't doing moviegoers any favors.

"MoviePass will be losing money on every subscriber seeing two movies or more in a month".

MoviePass is absorbing the ticket discount and hoping to make up the discount through monetizing the data and the breakage.

New users of MoviePass are sent a debit card in the mail and pick the movies they want to see through the MoviePass app.

Nearly two decades ago, Netflix offered an appealing option to fine-weary movie lovers: Unlimited DVD rentals that customers could keep for as long as they wanted. As we build the whole ecosystem for the movie business, the studios and players will see their profits increase. "Our vision has always been to make the moviegoing experience more affordable and enjoyable for our subscribers". MoviePass will cover the deficit between the subscription and the full ticket price offered. "That price is unsustainable and only sets up consumers for ultimate disappointment down the road".

With the advent of Netflix and other streaming services, theaters have seen a decline in attendance.

Update, August 16: Because we can't have nice things, AMC Theatres is threatening to take legal action against MoviePass.

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