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Topic: AMC Joins The Subscription Service Wars

Harold Hallikainen
Jedi Master Film Handler

Posts: 906
From: Denver, CO, USA
Registered: Aug 2009

posted 07-19-2018 10:09 AM

What service do you get for the $1.50 to $2.00?

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Terry Monohan
Master Film Handler

Posts: 379
From: San Francisco CA USA
Registered: May 2014

posted 07-19-2018 12:39 PM

Just like rock and music live shows movie theatres are now adding a service fee when you buy movie tickets on line. Some circuits charge more then others. I think AMC does not let you use their monthly movie pass for any AMC IMAX or Dolby Cinema/Vision auditoriums. It's a wonder they don't include 3D also. We mostly try to see new movies in the best large format theatres in the SF Bay Area. Will just do a box office walk up and save the online service fee. Who gets this service fee? Is it the people handling the cc/ money transfer or the AMC people?

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99

posted 07-19-2018 01:10 PM

We don't sell individual tickets online, but we do sell gift cards, with a one-dollar service fee per online order. That fee gets you my time in packing up the order to mail it, plus the cost of the envelope, a friendly "thanks for your purchase letter" and the cost of stamps. Not a bad deal, I think.

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Lyle Romer
Phenomenal Film Handler

Posts: 1400
From: Davie, FL, USA
Registered: May 2002

posted 07-20-2018 05:09 AM

quote: Harold Hallikainen
What service do you get for the $1.50 to $2.00?

It's probably to offset the cost of either a 3rd party that actually administers the online sales or to pay the software licensing for their online sales system.

The regular POS cost is built into the ticket price since everybody who buys a ticket via any means interacts with the POS. Only some people use the online option so they offset the cost.

If a 3rd party handles the online sales, it would likely be a per ticket sale agreement for compensation.

As far as subscription services, the biggest benefit would be to bring customers in during normally "dead" times. If I was a chain like AMC, I'd have 2 price points. One for the existing program and a lower cost program that can only be used for Mon-Thurs shows (excluding holidays). They could even go a step farther and offer an even lower tier that only works for shows before 6PM Mon-Thurs.

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Martin Brooks
Jedi Master Film Handler

Posts: 900
From: Forest Hills, NY, USA
Registered: May 2002

posted 07-26-2018 01:50 AM

quote: Terry Monohan
I think AMC does not let you use their monthly movie pass for any AMC IMAX or Dolby Cinema/Vision auditoriums.

Yes, they do - that's one of the advantages of their program. It's good for 3D as well.

quote:
AMC Stubs A-List is our newest and best tier in the AMC Stubs loyalty program! See up to 3 movies every week including all our premium formats such as IMAX® at AMC®, Dolby Cinema®, PRIME at AMC®, RealD® 3D, BigD® and D-Box at any of our U.S locations. Members can make advance reservations online and via the AMC app for free. Not only that, AMC Stubs A-List members also receive benefits of AMC Stubs Premiere complimentary.

and

quote:
AMC Stubs A-List members never pay online ticketing fees!

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Steve Kraus
Film God

Posts: 4094
From: Chicago, IL, USA
Registered: May 2000

posted 07-30-2018 12:41 AM

It's probably a big secret but does anyone have any idea how AMC will account for their pass users with the studios insofar as rentals are calculated?

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Marcel Birgelen
Film God

Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012

posted 07-30-2018 01:45 AM

In order for them to account differently for "subscription subscribers", they would need specific provisions in their master agreements with the studios. I'm pretty sure they don't have those. The studios willing to give up some of their own? I really doubt so.

I can't speak for AMC, but flat-fee subscription services have been available around here for a while now, many chains of variable sizes offer them. Their base-prices are usually in the range of two adult tickets per month. Most of those subscriptions also allow for rebates on concessions, somewhere between 10 and 25%, depending on the "tier". The basic "tier" usually doesn't include extras like 3D or "PLF".

The theaters account for fulfilled reservations as normal ticket sales. Depending on your running costs, your subscriber will be profitable if he visits your theaters no more than 2 or 3 times a month on average or he/she needs to offset it by buying much more of your concessions.

In the end, the model seems to be profitable, although they sell most of those subscriptions to the group of people that are most likely to "abuse" it: students.

The biggest advantage of having a solid subscription base is that it generates a form of reliable cash flow and you also receive this money up-front, which is also worth a lot.

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001

posted 07-30-2018 08:46 AM

quote: Steve Kraus
It's probably a big secret but does anyone have any idea how AMC will account for their pass users with the studios insofar as rentals are calculated?

I imagine it won't be difficult at all. If Stubs A-List works anything like the regular Stubs Premiere service customers will get their account number scanned every time they see a movie. I have a QR code in my phone to display my account number. You need that to take advantage of the "cut in front of everyone in line" service. [evil]

Many theaters are going to reserved seating and lots of people order their tickets online in advance anyway. If you buy tickets online you can show the ticket taker a QR code on your phone and skip the line at the box office and/or concession stand. Stubs A-List may work the same way. You'll just have a zero balance for ticket costs. But you'll likely still be forking over some cash for concessions. Everybody has to have that porcorn.

Although I could see customers trying, I don't think AMC would simply let Stubs A-List customers just walk into the theater and go directly into the auditoriums without any ticket stubs or hop from one movie to the other.

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Steve Kraus
Film God

Posts: 4094
From: Chicago, IL, USA
Registered: May 2000

posted 07-30-2018 11:29 AM

The question was not how the customer is handled but how AMC will account for Stubs A-List patrons when it comes time to figure gross and film rental. The studios will likely insist that the gross be based on that person having purchased a ticket at the price normally charged for that showtime and then figure rental based on that. While not as lossy as MP paying theatres full price it still doesn't take too many visits to put them in the red.

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99

posted 07-30-2018 12:20 PM

quote: Steve Kraus
The studios will likely insist that the gross be based on that person having purchased a ticket at the price normally charged for that showtime and then figure rental based on that.

Agreed, considering that's how they do it with free passes. I think most contracts allow a certain small percentage of actual free admissions, but if you go over that number (2% or something similar) then you have to pay full rental as if a ticket was purchased. I can't imagine them wanting to give any of that up.

Maybe AMC has worked out a deal where they pay on the entire gross and take an average admission price.... or maybe they pay the studios an amount based on each subscription-type ticket sold, independent of normally-sold tickets.

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Marcel Birgelen
Film God

Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012

posted 07-30-2018 12:22 PM

quote: Steve Kraus
The studios will likely insist that the gross be based on that person having purchased a ticket at the price normally charged for that showtime and then figure rental based on that.

Like I said... they're simply counted as normal ticket sales. At least that's how it works for every single one of those services in Europe. I doubt AMC will get any special treatment.

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001

posted 07-30-2018 01:24 PM

As big a chain as AMC is now I wouldn't be surprised if the studios did work out some special agreement with them.

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Marcel Birgelen
Film God

Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012

posted 07-30-2018 02:17 PM

We'll never know, because they will not tell us and they're certainly under a mutual NDA regarding their contracts with the studios.

But, I highly doubt it. They, as in the studios, don't bow for big chains in Europe and they're certainly not giving you anything for free if they don't need to: "You want to offer a flat-fee subscription? That's fine with us, as long as you give us our cut and account for every patron like a normal patron and you figure out how to make it work..."

It's like the meat supplier to your all-you-can-eat buffet doesn't care if you offer flat-fee steaks to your guests, as long as you simply pay every pound you buy from them. Why should they sell it to you at a lower rate?

AMC has an advantage when it comes down to "all you can see" subscriptions: that's their massive size and potentially large subscriber base. It's easier for them to stomach more "abusive usage", because they can spread the "damage" better. Also, because of their reach, their product will be potentially more valuable than a subscription from some smaller local player.

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Philip Jones
Film Handler

Posts: 90
From: England
Registered: Dec 2011

posted 07-30-2018 04:11 PM

The Cineworld Unlimited Card in the UK certainly used to go through cheaper than a normal ticket.

Going back about 10 year it used to come up at about £3.50 on the till when ticket prices were an average of about £5.50

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Marcel Birgelen
Film God

Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012

posted 07-31-2018 08:38 AM

quote: Philip Jones
The Cineworld Unlimited Card in the UK certainly used to go through cheaper than a normal ticket.

Going back about 10 year it used to come up at about £3.50 on the till when ticket prices were an average of about £5.50

Maybe it's some internal accounting between the franchise and the holder, but somehow it feels counter-intuitive to give out a sales receipt when the sale has already been made in the form of a subscription. You're going to end up paying taxes on it twice...

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