In an industry seeing decreasing box office revenues as an increasing number of consumers stay home with their streaming options (Netflix, Hulu, Amazon and others), an app called MoviePass may be the savior of brick-and-mortar cinemas: MoviePass customers can see a movie once every 24 hours (or 365 times a year) for only $9.95 a month. In addition, MoviePass pays theater owners full price.
"We have only had a few [MoviePass tickets] redeemed at The Flicks, but so far they have not presented a problem for us," Flicks owner Carole Skinner told BW.
However, it doesn't take an economist to conclude a consumer who goes to the movies three or more times per month is costing MoviePass money, or that MoviePass is risking significant net losses in order to build its consumer base. Great risk can come with great reward, though, which is something Mitch Lowe, the head honcho of MoviePass and co-founder of Netflix, knows well. When Netflix launched, its economic model was also questioned—it is now an unstoppable player in the entertainment field.
MoviePass seems primed to follow the Netflix path to success. MoviePass had more than 1,500,000 new subscribers in its first four months, creating the kind of vast subscription base it took Netflix more than three years to build. To see which theaters near you accept MoviePass, visit moviepass.com.