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For what won't be the first or last time, a Netflix exec has completely changed the game. Starting Tuesday, MoviePass, an established app where users can see unlimited movies for a flat monthly rate, will cost just $9.95 a month.
Let's repeat that. Unlimited movies in theaters for $9.95 a month.
SEE ALSO:Hollywood movies are getting too long, but there's an elegant solutionMoviePass was started in 2011 and is now run by Netflix co-founder Mitch Lowe. It was $50 at the time, but movie theaters still pushed back at the possibility of lost profits. Lowe told Mashablevia phone interview that MoviePass's drastic new price model is a direct response to the increasing cost of tickets. He said that MoviePass subscribers go to the movies twice as often after signing up as they did before.
“MoviePass was founded to make it easier for passionate moviegoers and casual fans to see films the way they’re meant to be seen — in the theater,” Lowe said in a press release. “Our vision has always been to make the moviegoing experience more affordable and enjoyable for our subscribers. We are changing the way consumers think about going to the movies by making it possible to experience a broader array of films — from the latest summer blockbuster to a critically-acclaimed documentary — through a subscription model."
The new pricing for customers is made possible by a sale to Helios and Matheson Analytics Inc, who will use MoviePass to study viewer behaviors and market to them more effectively. According to an email sent to existing subscribers, the price is guaranteed for at least 12 months.
I've been a MoviePass user since 2014, when it was $30/month ($35 in the notoriously costly New York City) and was limited to big theaters like AMC and Regal. You sign up and download the app, check in for the movie, and then use a special MoviePass debit card to pay for it. In the beginning, users could swipe once for any movie and go every 24 hours -- only a slight hassle if you wanted to see a movie one day at 8 p.m. and the next day at 6 p.m.
The rate quickly went up to $45 in big cities -- still reasonable given that the average New York movie ticket was now around $15.50 -- but spread to more theaters.The new MoviePass costs less for a month of unlimited viewing than a single, full-price movie ticket in major cities, but the average ticket price nationwide is around $8.50.
When the price hiked up further to $50, I put a hold on my membership. I paid normal ticket prices and felt my skin crawl as I swiped my own credit card for $16.50 and chewed gum to avoid spending any more on snacks. I quickly opted back in for a limited plan: $30.99/month for three movies -- still a steal if I used all three, but if I failed to go, I lost the money; there was no question of making it up in another month.
"The amount of transactions that happen, of people going to the movies 1.3 billion times a year U.S. is more than all the sporting events, all the entertainment events, all the live music events all combined," Lowe told Mashable.
A press release shared more about MoviePass' user demographics and financials, but most of the information is kept close to the chest.
MoviePass a true win-win-win situation for the moviegoer, the movie studios and the theaters. For the subscribers -- who, incidentally, represent a powerful demographic with 75% of the user base under 35 -- the low subscription cost enables them to see more movies than they may otherwise wait to see in post-theater release, which is critically important to the films that currently make up the release schedule. It’s further reported that subscribers, on average, have increased their annual movie-going budget four-fold.
So, what does this shocking, brazen, so-crazy-it-might work move mean for MoviePass -- and for movies? As Lowe noted, movie lovers with transaction fatigue can swipe more freely knowing that the bills have already been paid. They can take risks on bad movies or see things in theaters that they'd otherwise wait to see on streaming. Prices won't deter users in cities with skyrocketing ticket prices, and at the same time it could boost actual ticket sales as people take advantage of those unlimited swipes. Lowe also said that in a few years, MoviePass hopes to be a one-stop shop for advanced tickets, assigned seats, and even concessions.
Now sign up already and get yourself to the movies.
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