MoviePass Will Start Co-Acquiring Films For Theatrical Distribution
By Hoai-Tran Bui/Jan. 19, 2018 8:30 am EST
MoviePass announced the formation of MoviePass Ventures, described as a “wholly-owned subsidiary founded to co-acquire films with film distributors” at Sundance, where the company was debuting its content series “Off-Script: The Future of Film.” MoviePass CEO Mitch Lowe told the room of filmmakers, producers, directors, investors, distributors, and other industry executives:
“We’ve experienced enormous success bringing people back into the theaters since our launch in August and with an influx of business from distributors, have proven the impact of our marketing over and over again, giving them an incremental lift in ticket sales. Given the successes we have demonstrated for our distributor partners in ensuring strong box office in the theatrical window, it’s only natural for us to double down and want to play alongside them – and share in the upside.”
This was a hugely unexpected move for MoviePass, which I had assumed would take its next steps into the original content streaming field, not theatrical distribution. It’s an odd move for a company that appears to be on shaky financial ground, repping an appealing but unstable financial model that doesn’t seem built for the longterm. But MoviePass seems confident that “boosting performance in the theatrical window” will reap rewards for them by creating “greater downstream revenue” for streaming and home video platforms. Is that a hint that MoviePass plans to expand into the streaming field as well?
While that’s unclear for now, it is clear is that MoviePass Ventures is going full steam ahead, with Ted Farnsworth, CEO of Helios and Matheson Analytics Inc., announcing that the subsidiary will make its first acquisitions at Sundance. “We aren’t here at Sundance to compete with distributors, but rather to put skin in the game alongside them and to bring great films to the big screen across the country for our subscribers,” Farnsworth said. “We’re open for business. We’re here at Sundance – and SXSW is next.”
