MoviePass Is Trying To Save Movie Theaters, But It Needs To Save Itself First (HBO)

Movie theater attendance is the lowest it’s been since 1995. But a company called MoviePass is trying to fix that.

Mitch Lowe is the CEO of MoviePass– and as the co-founder of Netflix, he’s partially to blame for movie theaters underperforming.

“You know people have got to get out of this cocooning phase and into the experiential, “ says Lowe.

A subscription to MoviePass lets you see a movie a day, for ten bucks a month.

The math is simple: when MoviePass started in 2011, it cost up to 50 dollars per month, depending on where you lived. At the time, the average price of a movie ticket in the US was about $8 dollars, meaning you’d have to see seven movies a month to get the most out of your subscription.

But when the company dropped prices to $10 last August, the price to see one movie evened out to about the same price as the pass itself, and you got to see an unlimited number of movies a month.

Not surprisingly– subscriptions jumped from twenty thousand to over three million.

But Lowe wants to disrupt your movie-going experience altogether.

“The reason we’re able to offer you at extraordinarily low price is because we’re going to monetize the data to sell you things to create kind of an Open Table for your “night at the movies,” says Lowe, “So we’ll be working with restaurants and bars and build deals…and of course we’ll make a percentage of the revenue that you would spend there.”

Despite Lowe’s confidence in the business model, the stock of MoviePass’s parent company, a big data company called Helios and Matheson (HMNY), is tanking to a current low of $00.11 a share. HMNY has unveiled a plan to raise a billion dollars from investors, and do what’s called a reverse stock split, which could temporarily boost the stock price.

Shareholders will meet and write MoviePass’s next scene–or its ending– on Monday.

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38 thoughts on “MoviePass Is Trying To Save Movie Theaters, But It Needs To Save Itself First (HBO)

  1. That's why I have amc stubs A List. I can see 3 movies a week in any format I want, skip the box office, Reserve my seat/ticket ahead of time and get 10% off concession. I've been loving it so far and have been seeing way more movies.

  2. Well, at least they're open about selling your data. They really should spin it as "half of your other apps are secretly selling your data everyday, so why not get a deal on enjoying a night out"

  3. I'm seeing as many movies as I can before my one year is up in December. I will not sign up if I am subject to their new peak pricing, so might as well take advantage while I dont have to pay that

  4. The problem is, you're selling people they aren't interested in. This would've been great 25 years ago, back when movies were good. Movies aren't what they used to be. Movies just suck now. All you ever see is superhero this, and sequel that. Then they reboot those same movies, and do it all over again. In the past decade, there have been 4 actors who've played spiderman. There's been like 4 who've played Batman in the past decade. Movies have become a huge waste of time. And you see this happening on TV too. People are cutting the cord like crazy, because there's nothing worth a damn on TV anymore. Its all reboots in TV land too.

  5. My issue with MoviePass is that they do not have a solid business model. They keep changing what is and isn’t acceptable. I will resubscribe once they understand what they want to do. I do however think theaters will die because of the prices.

  6. Holy crap your actually defending the scummy actions that movie pass is doing??? Oh please do your research, you are blind if you can't see the real way that movie pass is planning to make a profit, by stealing it from the movie theaters concessions.

  7. I have an idea. What if they just stop making movies completely and actually make really good movies, maybe 10 or so a year and then everyone will have to watch said movies

  8. Movie theaters lost their appeal. $8 for small or medium pop corn, $4 for small drink. $8 to $15 bucks for tickets. Hell no, there used to be a time you could go and enjoy yourself. If you got kids/family, 4 people can easily spend 150 bucks and totally not enjoy the experience.

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