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MoviePass Reaches 1 Million Subscribers

20 Dec, 2017 By: Erik Gruenwedel



MoviePass, the subscription-based theatrical ticket service, Dec. 20 announced it surpassed 1 million subscribers — up from 20,000 subs in August when it reduced the monthly fee to $9.95 from $29.95.

The subscription enables users to claim one standard movie ticket per day, excluding 3D and in-theater dining.

“We believe that growth will continue as we further develop our application, improve customer service, enhance exhibitor relations and fill movie theater seats for incredible films to be released in the future,” CEO Mitch Lowe said in a statement.

The launch of MoviePass comes as 2017 ticket sales dropped by 50 million to 1.24 billion, from 1.29 billion in 2016, according to The-Numbers.com.

Sub growth and/or user-frequency are key to MoviePass’ long-term survival. The New York-based service pays participating theaters the full value of a movie ticket — banking its survival on the fitness gym business model. 

Indeed, 67% of gym members never actually go to the gym despite monthly fees automatically charged to their credit card, according to data from Static Brain.

Rival Cinemark just launched an $8.99 monthly subscription Movie Club service enabling users access to two standard movies monthly, in addition to 20% off concessions.

Ted Farnsworth, CEO of Helios and Matheson Analytics, majority owner of MoviePass, said the service topped 1 million subs faster than any SVOD service, including Netflix.

“We know this is what it will take for people to enjoy the experience of movies again,” Farnsworth said.

 

 


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