Weve written a great deal about MoviePass over the past few months, but their bizarre business model still takes a little effort to wrap your head around. In an interview with Recode, MoviePass CEO Mitch Lowe answered some questions that may clear some things up for people.
Heres the trick: 89 percent of American moviegoers only go to four or five movies a year. When they join MoviePass, they double their consumption and go to about 10 a year. Thats a little bit less than one a month. They balance out the 11 percent of the population that go 18 times before joining MoviePass and then after go three times a month. It works out. Over time, it actually works out to be about one movie per month per subscriber.
Our goal is to get to breakeven with the subscription and the cost of goods. Then we have all these different ways that we make your life better as a customer. We know how to market films to you. You know, the studios are incredibly inefficient the way they market small films. Over the last three weeks, we bought one in every 19 movie tickets in the country, but when we promote a film, were buying one in 10, so were lifting. These are for subjective $50 million box office films. The studios are paying us to be a more efficient marketer of films.
We know that theyll eventually sell their subscribers information to third parties once they build up a large enough base, but until then, what about the notion that the business model is unsustainable in the long run? Lowe doesnt seem the least bit concerned:
Well, if you think that theres not enough money to support the growth, then yes, you would think so, but most people didnt think wed make it this far. Remember, if were buying one in every 19 movie tickets and its an $11 billion business, you can kind of calculate thats a lot of money. We have been incredibly well funded. We have a backer that is prepared to go all the way to get us to cash-flow positive, which isnt all that far in the future."
I think by the end of this year, well be big enough to where theres Its really about getting enough customers who are beyond their fourth or fifth month and getting more subscribers in the lower-cost markets, in the Omahas and Kansas Citys of the world. Remember, to date, weve never done advertising. In the next couple weeks, well begin advertising.
You can pay the subscription monthly and literally cancel at any time if they do that though. Theres no commitment.I'm curious about this because I do see a lot of movies, but I'm paranoid that the minute I get it, they'll drop my theater chains.![]()
I like the idea but the trade off is they sell all your personal information and market it to who knows what kind of shady as hell businesses to further push advertisements at you.
And when inevitably one of the said shady businesses gets hacked (or Movie Pass itself), there goes your personal information.
MoviePass recently provided data to Business Insider laying out the 27 movies that have been the most successful with their users. Heres how theyre broken down:
Over 200,000 tickets sold:
Pitch Perfect 3
Peter Rabbit
Mollys Game
12 Strong
Tomb Raider
The 15:17 to Paris
A Wrinkle in Time
Darkest Hour
Death Wish
The Commuter
Maze Runner: The Death Cure
Lady Bird
Murder on the Orient Express
I, Tonya
More than 300,000 tickets sold:
Three Billboards Outside Ebbing, Missouri
Justice League
Red Sparrow
Coco
More than 400,000 tickets sold:
Annihilation
The Post
Thor: Ragnarok
The Shape of Water
More than 500,000 tickets sold:
Star Wars: The Last Jedi
Game Night
The Greatest Showman
More than 750,000 tickets sold:
Jumanji: Welcome to the Jungle
More than 1 million tickets sold:
Black Panther
Seeing the numbers for movies like The Greatest Showman and Jumanji: Welcome to the Jungle help explain how those movies remained so successful at the box office for an extended period of time. Though we obviously cant place all the success on MoviePass, surely plenty more moviegoers went to see these movies because it wasnt going to cost them a dime.
If we take the average ticket price of going to a movie in 2017 at $8.97, then the lower tier of movies that sold over 200,000 tickets earned at least $1.79 million from MoviePass tickets. And the numbers only get higher from there.
Doe anyone have a ticket stub verification feature on their Movie Pass? For some reason mine keeps asking me to submit one even though I already have.
After bouncing between a multitude of payment models throughout 2016, subscription-based movie ticketing service MoviePass finally struck gold last August when it lowered the price of its unlimited plan to $9.95 per month. For less than the price of a single movie ticket in New York City, subscribers could see up to thirty movies a month in theaters. But last Friday, alongside the introduction of a limited time iHeartRadio offer, the unlimited movie plan vanished.
With Coachella kicking off last weekend, MoviePass announced that it was teaming up with iHeartRadio to give new subscribers the chance to sign up for three months of MoviePass and a three month trial of iHeartRadio All Access for $29.95. The catch? This version of the membership lets you see just four movies a month.
If you visit MoviePass.com or download the MoviePass app on your mobile device, youll notice that the iHeartRadio offer is the only way to sign up for the service at the moment. Although a three month trial of iHeartRadio All Access is nothing to sneeze at, I imagine that a vast majority of new subscribers would take the additional 26 or so free movies a month over an extended trial of a streaming music service. But for now, they dont have that option.
The good news is that this offer doesnt appear to have any effect on current subscribers. If you signed up for the old $9.95 monthly service before last Friday, your plan should work the same way it always has. The concern is that the four movie limit will eventually apply to all subscribers once the iHeartRadio offer ends.
Of course, theres always the possibility that MoviePass goes right back to the business model it introduced last year once the offer expires, but the company can change its terms and conditions any time. As long as it provides enough notice and doesnt invalidate any of the annual subscriptions that its customers already paid for, it can limit every plan to four movies a month upon renewal. At the moment, theres no evidence that MoviePass is planning to do that, but if you paid for a subscription, it might be worth keeping an eye out in the coming weeks.
I'm confused, how is it ruined?
Yeah help me I'm dumb...?