MoviePass Drops Prices To An Even Lower $6.95 A Month: What Is Their Business Strategy?
By Hoai-Tran Bui/March 23, 2018 11:30 am EST
What is MoviePass’ business model? Is it getting a portion of the theaters’ box office or concessions income? Is it partnering with studios to promote their films? Or is it using its growing subscriber base as leverage in an ongoing revenue war against theater chains?
Whatever their strategy is, it doesn’t seem to making MoviePass much money in the long run. So why do they keep dropping their prices? MoviePass has just dropped its prices to the lowest they’ve ever been: $6.95 a month. MoviePass announced that, for a limited time, it is offering its annual subscription to new subscribers for $6.95/month. That’s half the price of a regular movie ticket in most markets. This isn’t the first time the company has offered the limited-time annual plan for the equivalent of $6.95 a month. In November 2017, MoviePass announced a special limited-time subscription of $89.95 for a year, which would be roughly the equivalent of $6.95 a month. We speculated back then that this was a grab for some fast cash for MoviePass, whose new plan of $9.95 a month barely seemed sustainable.
Now, MoviePass is offering the annual plan again. In a statement, the company said: The annual $6.95/month plan is available for new MoviePass subscribers only, and gives new subscribers the ability to attend up to one new movie per day in theaters for a whole year. MoviePass works at over 91% of theaters in America. “Our vision has always been to make the movie going experience easy and affordable for anyone, anywhere,” MoviePass CEO Mitch Lowe said in the statement. “With the current growth and support that we’ve seen within the last several months, our studio and exhibitor revenues and other marketing partnerships have motivated us to lower the price once again, offering movie lovers greater access to MoviePass.”
MoviePass Drops Prices To An Even Lower $6.95 A Month: What Is Their Business Strategy?
By Hoai-Tran Bui/March 23, 2018 11:30 am EST
What is MoviePass’ business model? Is it getting a portion of the theaters’ box office or concessions income? Is it partnering with studios to promote their films? Or is it using its growing subscriber base as leverage in an ongoing revenue war against theater chains?
Whatever their strategy is, it doesn’t seem to making MoviePass much money in the long run. So why do they keep dropping their prices? MoviePass has just dropped its prices to the lowest they’ve ever been: $6.95 a month. MoviePass announced that, for a limited time, it is offering its annual subscription to new subscribers for $6.95/month. That’s half the price of a regular movie ticket in most markets. This isn’t the first time the company has offered the limited-time annual plan for the equivalent of $6.95 a month. In November 2017, MoviePass announced a special limited-time subscription of $89.95 for a year, which would be roughly the equivalent of $6.95 a month. We speculated back then that this was a grab for some fast cash for MoviePass, whose new plan of $9.95 a month barely seemed sustainable.
Now, MoviePass is offering the annual plan again. In a statement, the company said: The annual $6.95/month plan is available for new MoviePass subscribers only, and gives new subscribers the ability to attend up to one new movie per day in theaters for a whole year. MoviePass works at over 91% of theaters in America. “Our vision has always been to make the movie going experience easy and affordable for anyone, anywhere,” MoviePass CEO Mitch Lowe said in the statement. “With the current growth and support that we’ve seen within the last several months, our studio and exhibitor revenues and other marketing partnerships have motivated us to lower the price once again, offering movie lovers greater access to MoviePass.”
Whatever their strategy is, it doesn’t seem to making MoviePass much money in the long run. So why do they keep dropping their prices? MoviePass has just dropped its prices to the lowest they’ve ever been: $6.95 a month.
MoviePass announced that, for a limited time, it is offering its annual subscription to new subscribers for $6.95/month. That’s half the price of a regular movie ticket in most markets.
This isn’t the first time the company has offered the limited-time annual plan for the equivalent of $6.95 a month. In November 2017, MoviePass announced a special limited-time subscription of $89.95 for a year, which would be roughly the equivalent of $6.95 a month. We speculated back then that this was a grab for some fast cash for MoviePass, whose new plan of $9.95 a month barely seemed sustainable.
Now, MoviePass is offering the annual plan again. In a statement, the company said:
The annual $6.95/month plan is available for new MoviePass subscribers only, and gives new subscribers the ability to attend up to one new movie per day in theaters for a whole year. MoviePass works at over 91% of theaters in America.
“Our vision has always been to make the movie going experience easy and affordable for anyone, anywhere,” MoviePass CEO Mitch Lowe said in the statement. “With the current growth and support that we’ve seen within the last several months, our studio and exhibitor revenues and other marketing partnerships have motivated us to lower the price once again, offering movie lovers greater access to MoviePass.”
Is MoviePass Aiming for Profile, Not Profit?
But maybe profit isn’t MoviePass’ goal. Maybe it’s a higher profile.
