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3 charts show how MoviePass is changing the movie theater business, but 'playing a dangerous game'
3 charts show how MoviePass is changing the movie theater business, but 'playing a dangerous game'
Jason GuerrasioMar 27, 2018, 01:16 IST
Business Insider
Since MoviePass dropped its monthly subscription price to $9.95 in August, there's been talk around the industry about how the company can sustain itself over a long period of time.
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While that's still yet to be determined, MoviePass is already giving some of the biggest movie chains in the country a lot of business, according to Second Measure, a firm that analyses US consumer spending on anonymized debit and credit card transactions.
Here are three charts provided by Second Measure that show the influence of MoviePass:
MoviePass membership climbs with each subscription price cut — but that's a 'dangerous game'
MoviePass’ numerous price cuts on membership have helped drive up its subscription numbers to over 2 million and CEO Mitch Lowe hopes to pass 5 million by the end of the year.
The initial $9.95 cut led to a subscription growth of more than 16-fold in one month. November’s $6.95 per month cut led to 14% opting for the full-year deal and a quarter of those annual subscribers purchasing more than one membership. That month, sales were five times greater than October.
However, Second Measure believes MoviePass is playing a “dangerous game.” The lower the subscription price drops, the more money the company stands to lose every time it buys a full-price ticket for its millions of users.
Theater sales have skyrocketed since the growth of MoviePass members spiked
Theater owners will like this one. Theaters are making substantially more money from MoviePass subscribers compared to how those people spent before having a membership.
MoviePass subscriptions brought in 81% more sales at AMC than one year prior, and 101% more sales to Cinemark. And that’s not counting the concessions these folks paid for with cash.
Competition is coming
It was only a matter of time before MoviePass imitators came on the scene and Cinemark’s Movie Club is the first major one. For $8.99 a month, you receive one ticket per month (it can be rolled over to the next month if not used). Though it’s not as sexy as MoviePass’ one-movie-a-day deal, people are doing it.
Since its launch in December, Movie Club has enrolled 1/5 as many new users as MoviePass did in that time period.
Nothing MoviePass has to worry about just yet. But there’s now someone in its rear-view mirror.
