Unlimited movies for $10 a month? MoviePass drops prices as AMC pushes back
Watching unlimited movies for just $10 a month sounds almost too good to be true, but MoviePass wants to make that a reality.
The service had offered subscriptions for between $15 and $50 dollars for unlimited movies. Basically, MoviePass members could go see one movie a day (standard 2D films—3D and IMAX showings are ineligible) at major theaters across the country.
The company has plans to drop the subscription price to $9.95 a month. Subscribers get to see the movie; the company foots the bill for each movie ticket used.
The company hopes lowering the subscription price will help it grow its subscriber base, according to Bloomberg. Having more subscribers means the company will get a better understanding of viewing behavior, helping MoviePass entice advertisers for targeted marketing.
It’s no secret that movie theaters are struggling these days, and summer box office receipts have been a disappointment so far. Still, it doesn’t look like all major theater chains like the idea. AMC Theatres, the country’s largest theater chain, called MoviePass’ business model “unsustainable” and is considering legal action to keep MoviePass subscribers from using the service at its venues.
“From what we can tell, by definition and absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month,” AMC said in a statement released Tuesday.
“We are actively working now to determine whether it may be feasible to opt out and not participate in this shaky and unsustainable program,” the company said.
MoviePass was founded in 2011 and signed a deal with AMC in 2014. The company hoped to get subscribers to pay $30/month for unlimited movie passes and make money from customers who didn’t use the service enough to justify the full price tag.
The company named Mitch Lowe its new CEO last year. Lowe is a former executive for Netflix and RedBox. He believes high ticket prices, not competition from streaming services like Netflix and Amazon, are to blame for the current theater slump.
According to Bloomberg, the top four cinema operators last $1.3 billion in market value early this month after disappoint summer box office returns. In addition, the price of a ticket has almost doubled in the last two decades.
Learn more about MoviePass at the company’s website.