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Box Office Mojo


#2683

Their hope is that people forget they’re subscribed. 70% of the revenues for Planet Fitness comes from members who don’t actually use the gym.

They should have called it dead a year ago. Honestly it’s an idea that was never workable.


#2684

I have heard from friends in the distribution side of the industry that there is wide suspicions in that side of the business that the CEO, who has a background in Netflix and Redbox, is perfectly fine devaluing the theatre experience by getting people used to a much lower price and then yanking it away.


#2685

Interesting. What do they gain from the devaluation? Netflix and Redbox had a clear reason to devalue their competition. MoviePass don’t seem to be in direct competition with theaters unless their next move is to buy out or start their own chain.


#2686

I think the suggestion is that if people get used to free or deeply discounted tickets, as people got used to free music in the Napster days, or free news on the internet, they won’t want to go back to paying $10 or more a pop.

That then helps any streaming services undermine the hold cinema has on new releases.

It’s has a whiff of conspiracy theory about it, and it’s a lot of money to lose with no clear link to that being the case, but I can see the basic logic.


#2687

I got a year long subscription back in March as a gift and I’m just about at the break even point. I do wonder how they’d handle refunds for those if they shut down before the year is up.


#2688

I suspect they’ll declare bankruptcy and you’ll be bang out of luck. Use up what you can now.


#2689

That’s what I figured. Ironic that every bad headline caused by their trying to limit use motivates people like me to use it even more.


#2690

Yeah, I suspect MoviePass’s end will come in the next month or so. They launched this service near the end of August and everyone was locked into a year in order to get that price. Sure, some people won’t be paying attention and will let their subscription auto renew, but if a bunch of people jump off at the year mark (which seems likely) then that should be where they finally declare bankruptcy and move on. MoviePass also has a dumb policy where if you cancel you can’t re-subscribe for 9 months. I’ve already canceled my subscription so that it doesn’t auto-renew.


#2691

Such cost-reduction and subscription revenue increase measures:

–Actions that have been implemented are currently cutting the monthly burn by 60%. We’ve seen during MoviePass outages this weekend, that they continue to serve Landmark Theatres, which they have an exhibition partnership with.

–A future increase of the standard pricing plan to $14.95 per month within the next 30 days.

–First Run Movies opening on 1,000+ Screens to be limited in their availability during the first two weeks, unless made available on a promotional basis. A conditional detail like this will truly make its subscribers head over to AMC Stubs A-List. Why even have MoviePass now that it can’t cover any title? The company’s press release this morning acknowledged that they shut down any ticket buys for Mission Impossible – Fallout over the weekend, “the first film included in the measure. This is a strategic move by the company to both limit cash burn and stay loyal to its mission to empower the smaller artistic film communities. Major studios will continue to be able to partner with MoviePass to promote their first run films, seeding them with a valuable moviegoing audience.”

–Implementation of additional tactics to prevent abuse of the MoviePass service.

Meanwhile at AMC:


#2692

…and what AMC are doing there has been proven to work in other countries and these are the reasons why it does and Moviepass doesn’t and it’s all about ownership of the theatres.

  1. Cinemas already make a huge chunk of their money on concession sales. A study by Vue in the UK found that with a monthly pass they spend more lavishly there, upgrade to a large popcorn because they feel they are spending less than usual. (It actually drove my mate Alex nuts and to resign as a manager from AMC owned Odeon as he felt they only cared about selling popcorn and fizzy pop and declared them all ‘popcorn sheds’).

  2. A majority of screenings are not full. The cinema pays the same in wages and overheads whether there are 1500 customers in watching movies or 15. In most cases that extra seat taken won’t practically cost them anything whereas Moviepass were paying for each seat.

  3. It’s a loyalty card. In most decent sized towns and cities you’ll have at least two chains operating, if you buy the AMC pass (or equally for any other operator) you’ll need a very strong reason to pay more and visit the rival.


#2693

I’ve got a movie pass from Vue cinemas here that allows me to see all their movies for eur 18 a month. That’s more expensive than the US movie pass I think?

It is advantageus for me since I see a movie on average every week which would cost me double if I had to pay a ticket each time.


#2694

The AMC one is $19.99 so quite comparable.


#2695

Don’t AMC still have to pay the studio for every viewing? Aren’t they somewhat still in a Moviepass situation where they need the right amount of usage - too much and they rack up big losses?

Doesn’t the Moviepass story suggest that those who buy the pass are likely to abuse it? I don’t know if concession sales make up the difference.


#2696

Yeah, when Movie Pass finally goes under I’ll probably switch over to the AMC plan, as it looks far more sustainable, and I’m near enough to some AMC theaters to make it worthwhile.


#2697

It’s a bit like any company having a pass. Pubs could have beer passes - $20 per month to drink as much as you like. Restaurants could have chicken wing passes. SPA’s could have massage passes. Most car wash places have passes.

You need just the right balance of interest and indifference. It’s difficult.

I’d considered a chicken wing pass when I ran the bar. At the end of the day I didn’t think the math would work out.


#2698

This exists? I would go to a pub like that. Mostly when I go to a pub - very rarely - I have 2 beers which will cost me 10 euros so it would be advantageous.


#2699

They do kind of but there is already flexibility in pricing. Hence your Wednesday matinee is half the price of Saturday night but they pass on the same percentage box office.

I have to admit I don’t know enough about the US system to say what the exact rules are around that, or even the UK one. Passes are long after my time.

I know studios carry out random checks just to make sure cinemas aren’t lying on numbers but when I declared back to the BFI in the UK it was just admissions (which the US doesn’t record) and then cash and the cash percentage was paid across to the distributors. We issued free tickets as rewards and they were never counted, we’d also suspend the ‘free list’ if films looked like selling out so really no revenue was lost. The pricing changed daily, Vue now operate computer controlled variable pricing based on demand. It was still always percentage based, not a fixed payment per show which Moviepass are paying.

There is a control in there as if the money passed back is too low they can and have stopped giving access to releases and favouring other exhibitors.


#2700

Not long before I left Wales there was a local nightclub that charged £10 for entry with free drinks all night. You ordered the bottle you wanted and they’d replace it when finished and you handed over the empty one.

My mate knew the boss and said they made loads of money. The wholesale price for each bottle cost 60p and only a few male heavy drinkers would have enough to make that a loss and most of the ladies had 3 or 4. It was always packed and they only needed one barman per bar as there was no cash or collecting glasses, just handing over a bottle.

It stopped not because it lost money but the local council said it encouraged binge drinking and they banned it. :slight_smile:


#2701

AMC’s program limits you to three movies per week (12 movies per month). I asked Christel about it as she is a regular Stubbs member and goes to more movies than I do and she said she truly doubted she would see three movies every week, let alone 12 per month.

I think 1% (if that much) of the membership would see 12 movies per month. I could see the average person going to 2-3 movies per month and even that would depend on personal tastes and what is showing. I think it would become like the “gym membership” and used heavily in the beginning tapering down to occasional usage.


#2702

That seems to echo what we’ve seen from people here. Monk is just about at break even point, Jerry goes pretty regularly but not at those levels. I think most weeks you’d struggle to find 3 movies at a multiplex that interest you.