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This topic comprises 5 pages: 1 2 3 4 5
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Author
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Topic: Let people to all the movies they want for the price of a single ticket
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Justin West
Master Film Handler
Posts: 271
From: Peoria, IL, USA
Registered: Jul 2001
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posted 08-21-2017 02:06 AM
A couple issues include: 1) As Netflix (and, later, Redbox) took off, sales of DVDs dropped. The idea of owning a DVD was to have it available to play at your leisure, at your whim. Their value in the eyes of the consumer became limited as Netflix and Redbox exploded. Why do I need a hard-copy when for my monthly subscription, I can stream a copy instantaneously (or rent one 24/7 on the cheap from any kiosk nearby)? The same reaction could be expected with the proliferation of cheap subscriptions to MoviePass! Why pay full-price at the door when for a few clicks on my smart phone, I'll have a ticket waiting for me? Just swipe my MoviePass! Paying MoviePass, not the theatre will be the mindset developed in the public's psyche!
2) Poorer or less than top of the line theatres (I'm especially thinking hardtops, here) will take a hit. If I could watch a movie with stadium seating, top of the line sound and picture, maybe in toney surroundings all for the same flat monthly price as going to the shoestring-budget indie that can't compete on services but makes up for it by otherwise offering a discounted admission price...well, the MoviePass customer won't have that key factor to consider, and so, expect attendance for the lesser, smaller, indie ops to suffer. Maybe I don't offer stadium seating and multiple-channel surround sound but I am also not charging $10.50 a ticket...but the MoviePass customer won't know this, nor would he or should he care!
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Marcel Birgelen
Film God
Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012
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posted 08-21-2017 07:59 AM
Around here, the price for a regular ticket without any supplements like 3D hovers somewhere between EUR 8 and EUR 11, so it's pretty much comparable to the price of an average ticket in the U.S.
Pathé, part of the French Gaumont Pathé chain and a major player in France and the Netherlands, introduced the concept of an "all-you-can-watch" subscription in the Dutch market a few years ago. They're still actively marketing those subscriptions, and while their offering has been inflation-corrected, the price has essentially been stable. Furthermore, other chains like Vue Cinemas, have adopted essentially the same "flat-fee" subscriptions. So, the model works and people seem to be happy with it.
The basic subscription is EUR 19 a month and offers unlimited access to all shows and a 10% rebate on all concessions. There is a surcharge for supplements like 3D and "IMAX" though. The premium version goes for EUR 26/month and includes all supplements for e.g. 3D and IMAX and offers a 25% rebate on all concessions.
They still have to pay the full price to the studios and RealD and IMAX where applicable off course. So, for the real heavy users, there is no way they still make money on "ticket sales" this way. But since they're getting a bargain on their admission, many of them will spend more on concessions. Also, even with 10 or 25 percent rebate, there will still be sufficient margin left on those. Obviously, they can keep the money of those subscribers, who underutilize their subscriptions.
Initially, I was pretty sceptical about this "all-you-can-eat movie buffet", but we're living in a world were flat-fee is becoming the norm in everything. So, whereas I had my doubts, I now think that a subscription model could become an essential part and maybe even the saving grace for the exhibition industry at large.
Obviously, this MoviePass concept is not going to be that saving grace, it will only amplify a race to the bottom.
Their current proposition is just half of the basic price those subscriptions I mentioned earlier. Also, MoviePass is not a lock-in subscription, as they claim to support practically all movie theaters.
Even if they sell all your personal data to the highest bidder and load their app full of adds, their current model cannot be profitable in the current market. They cannot make a profit, unless they drastically change the market, so it better fits their model.
It's obvious what their plan is. They're currently using investor money to push out a deal to the market that's too good to be true. They're trying to gain a customer base as big as possible, to essentially get a foot in the door.
Once they've reached some kind of critical mass and they assume themselves to be in a leverageable position, you'll see how they'll try to squeeze out both the exhibition industry, the studios and their customers to get some "deals". In the end, they'll get a nice profit margin, without really adding anything to the value chain...
What they're trying to do, is essentially what they did with Netflix. They started to offer monthly subscriptions at a price which was far below the average market price. They could do so, because of big investments from external investors. They undercut practically everybody and essentially forced everybody to partake into their race to the bottom or to be left holding the bag.
The remedy is simple enough, but it requires some kind of common understanding, which is unfortunately something hard to achieve. If all the other parties involved with this scheme simply keep the door shut, it will eventually just go away. Once they sold sufficient souls their semi-freeloader subscriptions, they'll start their negotiation tactics with both Hollywood and the exhibition industry. By then, they'll be pissing out millions and millions of dollars each months, to cover for the free tickets.
If nobody takes their bait, they'll be stuck with a defunct business model and it will be over and out for them rather sooner than later.
Unfortunately, if one of the major chains takes the bait and switch, then I'm afraid we're in for a whole new world of hurt in the long term.
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Jonathan M. Crist
Jedi Master Film Handler
Posts: 531
From: Hershey, PA, USA
Registered: Apr 2000
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posted 10-21-2017 01:26 AM
MoviePass Backer Helios' Shares Off 23% On News Of Strong Netflix Growth 10/18/2017
Helios & Matheson, the big data analytics company that is the largest shareholder in movie ticket subscription service MoviePass, saw its shares drop 13 percent to $18.23 at the close of trading on Tuesday, and an additional 10 percent to a close at $16.23 on Wednesday, on news that streaming video giant Netflix saw better than expected subscriber growth in the past quarter.
The news that Netflix added 5.3 million subscribers in its most recent quarter, compared to previous guidance of 4.4 million, underscored the challenges MoviePass faces as it plays out its David vs. Goliath battle for the attention of movie viewers. Although the two services don’t compete directly with each other, both seek to engage the patronage of entertainment consumers through their respective subscription offerings.
Helios & Matheson has made a big bet on the nascent prospects of MoviePass, by investing $28.5 million, to acquire a 53.7% stake in the movie ticket subscription service, according to its recent 8–K filings. Prior to August, when Helios initiated its investment, MoviePass had a revenue run-rate of under $10 million annually, and a staff of just nine people.
All of that changed on August 15th, when MoviePass announced that it was dropping the price of its movie-ticket-a-day service from as much as $50/month down to $9.95. Consumer reaction was swift, and the company received initial payments from over 400,000 new subscribers in a matter of days.
When MoviePass announced its new numbers the next month, Helios' stock reacted just as swiftly, rocketing by 1400% from $2.50 on September 14 to an all-time high of $38.66 on October 11.
Investors Business Daily suggested that the huge run-up in the Helios share price may have been spurred partly by short sellers being forced into covering their positions. According to shortsqueeze.com, 62% of Helios shares are held by short sellers.
The stock has been in a volatile price and volume pattern over the past few weeks as investors digest the MoviePass economic model and the company's longer-term prospects. Prior to Tuesday's 13 percent decline, Helios had plunged by 45 percent on October 12th, on news that the company had met the financing conditions necessary for it to consummate its investment in MoviePass.
The Netflix news and subsequent pummeling of Helios' stock must come as particularly ironic for MoviePass CEO Mitch Lowe, who earlier in his career had served as a senior, founding executive at Netflix.
The Beginning of the End?
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Justin West
Master Film Handler
Posts: 271
From: Peoria, IL, USA
Registered: Jul 2001
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posted 10-30-2017 10:26 PM
Hmmm, so much for the one-movie per day enticement? Moviepass updated terms including the following: 2.4. MoviePass reserves the right to change or modify the Service or subscriptions at any time and in its sole discretion, including but not limited to applicable prices, at any time, without prior notice. MoviePass reserves the right to change the rules of movie-going attendance and ticket availability to members in connection with the Service at anytime. MoviePass reserves the right to change from time to time the number of eligible movies a member can see per month. MoviePass reserves the right to offer members a new price option if they exceed watching a certain amount of movies per month. You will be notified of any price changes made to the terms of service prior to your next billing cycle, at which point you would have 14 days to opt-out of the Service and terminate your subscription. MoviePass will not make any changes to your subscription mid-cycle, all changes will be in affect at the start of your next billing cycle. MoviePass is not responsible for theater programming, cancellations, or rescheduled performances. MoviePass reserves the right to change from time to time the number of eligible movies a member can see per month. MoviePass reserves the right to offer members a new price option if they exceed watching a certain amount of movies per month.
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Frank Cox
Film God
Posts: 2234
From: Melville Saskatchewan Canada
Registered: Apr 2011
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posted 11-17-2017 04:19 PM
MoviePass Reveals Annual Subscription For $6.95/Month, But Is It A Deal?
quote:
MoviePass seemed like the deal of the century: $10 a month to see one movie a day at the theaters? No contest. But in the three months since the start-up company seeking to disrupt the theater market with a Netflix-like service launched its new business model, MoviePass has been plagued by technical hiccups, backed-up deliveries, and potential lawsuits.
As the company expanded its operations, it finally began to settle into its new subscription base of more than 600,000 users. And now MoviePass is already offering up a new deal: an up-front annual subscription of $89.95, which amounts to about $6.95 a month. But how much of a discount is it really?
The MoviePass annual subscription is a limited-time promotion that will last 12 months, according to the website. Users pay $89.95 up front, plus a $6.55 processing fee. “Once your year is up, your plan will convert back into your $9.95 a month. Offer valid until it’s not. Limit two per household,” the MoviePass website says.
Current subscribers can change to the annual plan for 12 months if they want to, after which the subscription will revert to the $9.95 per month plan. According to the MoviePass FAQ, the annual plan is the only one available to new subscribers, who can’t subscribe to the monthly $9.95 plan until the limited offer expires. However canceling is another issue: ” You may cancel your annual subscription at any time. However, there are no refunds for the remaining unused time on your plan. If you change your mind, you will not be able to set up a new account for nine months,” MoviePass writes. You can, however, change your monthly plan to the annual program if you are already a MoviePass subscriber.
We reached out to MoviePass for confirmation on this promotion, and a representative confirmed to us that the company is launching annual subscription, with more details to follow on November 17.
It seems like an ambitious move for a company that is still trying to complete its overflow orders, with many subscribers still not receiving their MoviePass cards up to three months after their initial orders. The company was inundated with requests after its August announcement of the $9.95 monthly subscription and received a far greater amount of orders that the small start-up anticipated. MoviePass has since expanded operations but is still struggling to complete its orders and live up to its promise of 5 to 7-day delivery.
Signed up for @MoviePass over a month ago. Still have not received anything. Thought it was a good concept, but not sure about follow through. @MoviePass_CS
— Josh Seefried (@JoshSeefried) November 15, 2017
lol at @MoviePass offering this new annual plan when people who subscribed to the monthly plan over 3 months ago still haven’t received their cards. @MoviePass_CS
— Justin Snyder (@Justin__Snyder) November 16, 2017
@MoviePass_CS You sent me this on Sept. 18. That was 59 days ago. Did you mean to say 57 days instead of 5-7? pic.twitter.com/USSHjZsF6u
— kb???? (@gregkb) November 16, 2017
Here’s how the app works: You open your MoviePass-friendly theater’s page on the app displaying the movie showtimes. You select the showtime you want to go to, and the app sends the necessary amount of money into your MoviePass card, which you then use like a credit card at the ticket kiosk or window. However, this simple (but not quite intuitive) process isn’t foolproof: Users have complained that theaters that supposedly accept MoviePass turn subscribers away at the door. E-ticket orders don’t go through to the theater. Users complain about long loading times, or movies incorrectly displayed in the app.
These are part a series of bugs that MoviePass has been struggling to smooth over since the app was first introduced, though the problems are decidedly fewer than when it first launched.
what moviepass said was playing at my local theater vs what is actually playing OMFG pic.twitter.com/OGf4sjcj2S
— monica (@tomhardty) November 16, 2017
It begs the question of what would motivate MoviePass to suddenly announce this plan that would certainly bring the company a brand new, immediate cash flow. It could be because the company is still in the process of expanding operations, recently hiring a vice president for exhibitor relations to head outreach to independent theater chains, who could stand to grow their customer base through MoviePass. The company also announced that it had raised $100 million to fund operations.
Until recently, MoviePass was also being beset upon on all sides by major theater chains like AMC, whose CEO Adam Aron initially predicted the start-up would fail and even threatened legal action. But MoviePass CEO Mitch Lowe assured Variety that “None of the big guys are threatening lawsuits anymore.” Lowe added that the major chains still aren’t offering discounts on tickets or giving a cut on concessions, however, which may explain the new limited-time promotion.
Another possibility: Lowe hinted that MoviePass may make a pass at the increasingly crowded streaming service field, according to the Hollywood Reporter. “It may be at some point we launch a streaming service,” Lowe said Monday on CNBC. No official announcement about a streaming service has been made, but it wouldn’t be unusual, with more companies like Disney announcing their own exclusive platforms.
In the end, MoviePass’ new bid at some quick capital may just be because they’re presumably losing money — offering users tickets at the going rate doesn’t generate the company much revenue.
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