MoviePass, the bankrupt movie subscription service that enabled it’s users to see a certain amount of movies in an allotted time for varying prices, is looking to launch again. Thanks to court-approval, original co-founder Stacy Spikes has re-established ownership of MoviePass and is considering a reboot of the company.
Declaring bankruptcy in 2019, one of the major reasons for MoviePass’ demise was the resistance the company experienced from major film exhibitors, such as AMC and Regal. The theater chains were not only hesitant to allow an independent company to have so much sovereignty over the box office, but they also did not want to share concession profits with MoviePass.
On the other side of the spectrum, MoviePass could not figure out a consistent deal to offer its customers and ultimately destroyed consumer belief in the brand. At first, MoviePass appeared to be a free-for-all where moviegoers could pay one monthly price, $30, and see a movie a day. However, MoviePass went through several changes in their business model and ended up with subscription users only having access to three movies a week, before dropping their prices to $10 a month. The inconsistencies did not help their bottomline.
The conventional Hollywood system that holds film exhibitors as essential channels of film distribution are known to be slow to embrace innovation — hence, the ongoing sea of confusion surrounding release windows among competing distribution platforms, such as streaming versus theater releases.
Not one to believe before it happens, conventional Hollywood seems to always need proven validation that a business strategy will work before embarking on something fresh and new. That’s probably why we’re seeing some major studios regurgitate their entire IP from the ’80s and ’90s into different formats or themes, hoping to recapture the original magic.
Once conventional Hollywood sees the vision (or the money that a competitor is making), it is then that they all want to jump on board and get with the program. The same thing happened when Netflix tried to get the studios on board to provide their IP on the streaming platform, but was ultimately shunned…that is, until their popularity and revenue started to soar. Now, everyone wants a streaming platform to complement their studios.
Back to MoviePass, the company had a brilliant idea to offer a ticket subscription service. Instead of the theater chains embracing the company, they copied the company’s business model and used it for their own benefit, cutting out the middle man.
AMC and it’s very popular A-List subscription and loyalty program that rewards ticket buyers with concession discounts and upgrades, has adopted the business model of offering moviegoers three movies per week for less than $30.
Regal’s three-tier subscription service has a more flexible approach, enabling its users to view unlimited movies and enjoy a small discount on concessions with prices varying between $18 and $24 for the service.
The more conservative Cinemark, offers its Movie Club subscribers one free movie ticket per month and discounted concessions for a low cost of $10.
Now, that MoviePass is considering a comeback, what can the company do to standout from the competition?
“Momentum is a key element to success when it comes to a fast-moving industry,” said Betty Bema, owner of The MouthSoap and former Worldwide Theatrical Distribution employee. “I’ve been watching MoviePass as a business case study for a while and I knew that the moment the exhibitors didn’t buy in, the company was in a heap of trouble. You don’t want to be in business that is heavily reliant on whether the old heads get it or not. They’ll eventually get it, but then, they’ll try to cut you out of it — and by then, the first-to-market advantage has dissipated.”
Betty Bema recommends that MoviePass considers embracing other circuits that require ticket purchases, such as live events, special screenings, conferences, and so forth. By doing so, the customer is being offered way more for their buck and the opportunities for collaboration and partnership will expand, giving MoviePass leverage in the ticket subscription business.
“With events, such as Comic-Con, the Olympics, Super Bowls, music festivals, and more, coming back to their pre-pandemic state, perhaps MoviePass can create a ticket subscription service based on the consumers’ needs and desires to create an all-encompassing ticket service. And this time around, offer price tiers so that no consumer is left out.”
Betty Bema
As far as the movies, it may be a lost cause, unless MoviePass can somehow reserve exclusive seats at theaters for their subscription users for sold out events, such as Marvel and Disney releases, or highly anticipated films. Sort of like the theme parks that offer “first-in-line” access to rides for a premium price. Customers will pay for exclusivity and first-pickings.
Betty Bema continues, “When one door closes, bust the window.”
Photo Credit: NASA
