MoviePass creator credits service's birth to Apple iPhone & mobile apps

In a promotional interview published on the iOS App Store, the one of the creators of MoviePass — a subscription service that lets people see a 2D movie every day — suggested that the Apple iPhone and mobile apps in general were instrumental in getting it off the ground.

"The idea was almost too early," said Stacy Spikes in reference to an earlier attempt at the all-you-can-eat model with the Urbanworld Film Festival in the 1990s. "We didn't have iPhones and apps to figure out payment and interfacing. If it weren't for that development, MoviePass would never have happened."

iPhone users can sign up for the service through the MoviePass app, after which they'll be sent a card in the mail. At that point the app becomes a tool for finding theaters and showtimes — once a showtime is selected, the card is activated for use at kiosks, and in some cases people can simply reserve their ticket online.

MoviePass has actually been around since 2011, but only surged in popularity late last year after fees were lowered to $9.95 per month. At the moment, that rate is just $7.95 per month for first-time subscribers willing to pay for a full year.

The service has been controversial, with some theaters refusing to accept it, and MoviePass itself pulling out of some AMC theaters. Part of its income is derived from data collection by majority stakeholder Helios and Matheson Analytics, and it has yet to make a profit regardless — though it should be able to do so when it hits 4 million subscribers, possibly later this year.

Despite problems MoviePass could be a potential lifeline for theater chains, which have struggled to keep up attendance and profits in an era of online streaming and high-quality home theaters.

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15 Comments

Soli

said about 6 years ago

So far it's been a great service. Some will comment that they'll sell your generalize viewing habits data. Big fucking deal. It's not like movie theaters don't know my viewing habits already. I paid less than $80 for an annual pass last year and it's more than paid for itself.

I know a lot of people with MoviePass, and it seems that many people with it, 1) are going to the movies more, and 2) more likely to get concessions since the movie "feels" free of charge. I'm slightly on the former, but not at all on the latter, but that's probably because I gave up soda in the past few months. Regardless of what I do, I do think there's an argument for MoviePass to get discount costs from the theater and even a small take of the concessions (as they've rumored to be pushing AMC to do) if the theater is benefiting from their existence. That said, I can potentially see a small drop in ticket price but I can't see taking a piece of the concessions ever happening.

tmay

said about 6 years ago

Soli said:

So far it's been a great service. Some will comment that they'll sell your generalize viewing habits data. Big fucking deal. It's not like movie theaters don't know my viewing habits already. I paid less than $80 for an annual pass last year and it's more than paid for itself.

I know a lot of people with MoviePass, and it seems that many people with it, 1) are going to the movies more, and 2) more likely to get concessions since the movie "feels" free of charge. I'm slightly on the former, but not at all on the latter, but that's probably because I gave up soda in the past few months. Regardless of what I do, I do think there's an argument for MoviePass to get discount costs from the theater and even a small take of the concessions (as they've rumored to be pushing AMC to do) if the theater is benefiting from their existence. That said, I can potentially see a small drop in ticket price but I can't see taking a piece of the concessions ever happening.

The issue, I suspect, is that theaters benefit little from ticket sales at a film's first release, with the studios getting all or most of the initial take. How do theaters compensate studios when the tickets are discounted MoviePass? Are the theaters losing money and making it up on snacks and soda?

phone-ui-guy

said about 6 years ago

Soli said:

So far it's been a great service. Some will comment that they'll sell your generalize viewing habits data. Big fucking deal. It's not like movie theaters don't know my viewing habits already. I paid less than $80 for an annual pass last year and it's more than paid for itself.

I know a lot of people with MoviePass, and it seems that many people with it, 1) are going to the movies more, and 2) more likely to get concessions since the movie "feels" free of charge. I'm slightly on the former, but not at all on the latter, but that's probably because I gave up soda in the past few months. Regardless of what I do, I do think there's an argument for MoviePass to get discount costs from the theater and even a small take of the concessions (as they've rumored to be pushing AMC to do) if the theater is benefiting from their existence. That said, I can potentially see a small drop in ticket price but I can't see taking a piece of the concessions ever happening.

All I can see is them going out of business. Seems like Moviepass wants to drive up their subscription numbers enough so that if the service goes away it will tank the theater chains and try to use that as leverage for a deal. It may well cause them to tank, but supporting something that cheapens the cost of the experience that much would do even more to hurt them IMHO. Enjoy it while you can either way.

maestro64

said about 6 years ago

This companies stock sucks, the market drives it up and down all over the place since they can not figure how they will make money and if people will continue to go to actual movie theaters.

Soli

said about 6 years ago

maestro64 said:

This companies stock sucks, the market drives it up and down all over the place since they can not figure how they will make money and if people will continue to go to actual movie theaters.

You know that was the biggest, bullshit scare when the TV was first invented, right? Would you say that movies dropped off after it was invented? What makes you think that no one will continue to watch movies in a theater in near future? I, personally, see no future where a functioning society will not want to see movies in the theater. While I could wait to see The Avengers: Infinity War at home, the cinema offers many benefits that won't soon be replicated well enough.