Is MoviePass Really Worth It?
For $10 a month, you can see as many movies as you'd like
At first glance, MoviePass sounds almost too good to be true - a movie theatre subscription service that let's you see as many movies as you want for only $10 a month? Most movie tickets cost at least $10, and that's just for one movie. Is MoviePass too good to be true? The Sitch has broken down a bit of the history of MoviePass along with pros and cons of subscribing to the service.
How It All Began
Founded in 2011 by Stacy Spikes and Hamet Watt, MoviePass started out as an "invitation only" movie subscription voucher service. Subscribers could purchase their ticket online at a discounted rate, print a voucher, and show it at the theatre in order to see the movie. MoviePass began to really pick up speed in August of 2017 when they released a new payment plan that would involve a MoviePass Mastercard (able to be used only on movies purchased through the app) and subscribers would pay $9.95 per month to see as many movies as they would like (up to one movie per day). Now MoviePass has over 3 million monthly subscribers.
How It Works
MoviePass made an agreement with a select group of theaters (primarily AMC) that they would pay the ticket prices in full for the tickets purchased by subscribers on the promise that it would not only help fill up seats in theaters, but that it would also drive up revenue for the theaters through the purchase of snacks. If customers were paying less for a movie ticket, there was more incentive for purchasing a popcorn and Coke. In the first year of MoviePass it was reported that 64% of it's subscribers were seeing more movies than prior and the subscribers were paying approximately 123% more on concessions (since they didn't have to pay for a ticket at "full price").
Pros & Cons Of using moviepass
For subscribers, if you see roughly one movie per month, you break even. Which means that most subscribers are getting their money's worth, if not more so. The average MoviePass subscriber is seeing six times the movies they were prior to subscribing to MoviePass.
For theaters, MoviePass subscribers spend (on average) $15 on concessions when they attend a movie, which is driving up revenue for the theaters.
For subscribers, MoviePass is instating new rules in order to prevent user fraud. You have to be within 100 feet of the movie theatre in order to reserve your ticket, a picture of your ticket is now required within the app, and you can only see each movie once.
For MoviePass, they began their service with the idea that more people would purchase MoviePass than would actually actively use the subscription. This, in turn, would offset the cost of paying the theaters back for each ticket purchased on the app. However, the subscription has been so successful for consumers that MoviePass has already lost millions of dollars in revenue.
For theaters, many independently owned theaters are concerned that if/when MoviePass goes under that the backlash will seriously affect their business in a negative way.
Is MoviePass worth it?
While MoviePass is still offering a monthly movie subscription for $10 a month, it is a no brainer that it's worth it - as long as you see at least one movie per month. If MoviePass increases their prices due to the seemingly unsustainable model, it might be less worth it in the future.
What do you think about MoviePass? Is it really worth it? Be sure to let us know in the comments section below!
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