The controversial subscription service for movie-goers, MoviePass, is still chasing new customers as it attempts to rapidly grow its user base before its funding runs out. After growing from 1.5 million to 2 million users
in less than a month's time, the company has now teamed up with
streaming service Fandor to appeal to potential subscribers with a
bundled offer.
However, some users were confused about the new pricing plan worked.
Like MoviePass says, the deal
will lower the MoviePass subscription down to $7.95 per month from its
usual $9.95 per month. But the full annual fee has to be paid upfront,
not monthly.
The company hasn't decided how
long before this offer expires, but it's not the first time that
MoviePass has tried a bundle. The same offer was originally tested back
in November 2017, and was well-received, says MoviePass.
The deal arrives at time when MoviePass' business model is being increasingly scrutinized. The company claims its users now drive more than 5 percent of the total box office and is continuing to grow its user base. But MoviePass is subsidizing the cost of those tickets for now, while betting on the fact that it will be able to monetize in other ways.
For example, it aims to make money from studios who want to target its customers with their marketing efforts, or access user data to learn about trends; it's taking a cut of ticket sales and concessions at some theaters; it has begun
to acquire movies; and it hopes that eventually, users will slow down
their movie-going to their usual once per month (or less), after the
initial rush of having an all-you-can-watch subscription wears off.
Not all theater chains are thrilled with MoviePass, however. MoviePass recently pulled out of several high-traffic AMC locations as the chain refused to negotiate on a rev-share deal.
AMC Century City 15 in Los Angeles; AMC Mercado 20 in Santa Clara, Calif.; AMC Disney Springs 24 in Orlando, Fl.: AMC Loews Boston Common 19 in Boston; AMC River East 21 in Chicago; AMC Mission Valley 20 in San Diego; AMC Tysons Corner 16 in McLean, Va.; AMC Veterans 24 in Tampa; AMC Loews Alderwood Mall 16 in Lynwood, Wash.
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