MoviePass Subscribers Top 600,00024 Oct, 2017 By: Erik Gruenwedel
MoviePass, the subscription-based theatrical ticket service, Oct. 24 announced it has surpassed 600,000 subscribers — up from 20,000 subs in August when it revamped the monthly fee to $9.95 from $29.95.
The New York-based service projects it will top 3.1 million subs through next August compared to a previous estimate of 2.5 million subs.
With the 2017 box office attendance reportedly projected to hit a 25-year low, MoviePass bills itself as an industry antidote capable of bringing consumers of high-margin concessions back into theaters.
MoviePass subs are limited to one theatrical screening per day. A Harris Interactive poll in 2014 found the average American watches about five theatrical movies per year.
“I believe our ongoing investments in customer experience, usability and convenience have steadily improved customer satisfaction and retention,” CEO Mitch Lowe said in a statement.
Helios and Matheson Analytics, the private equity firm and majority shareholder in MoviePass, said the service had a subscriber churn rate of 2.4% (from 4.2%) after lowering the subscription price. Based on current churn rates, monthly sub retention is above 96% and average paying monthly subscriber life expectancy is 46.8 months.