The Movie Pass Effect

            I could try to romanticize going to the movies to hide some of the less flattering aspects of it. The smell of old, buttery popcorn and the crunch of stale candy when you walk into the auditorium. The chance that while you’re sitting down, someone who drank way too many sodas earlier has to constantly walk between you and the screen when nature calls. Then of course, a little kid who trots along the isle behind you occasionally screaming “Wakanda forever!” in your ear (I may have experienced this one). There are opportunity costs for going to the movies rather than staying home, but the benefits of top grade sound and visuals can be possibly paired with better pricing in the near future in the form of movie theater subscription plans.

            With movie streaming services like Netflix and Hulu becoming more and more integrated in American culture, the movie theater industry has started to combat these sites with their own subscription plans for customers. One of the most notable and newsworthy companies offering a movie subscription is MoviePass. Opening in 2016, the company offered moviegoers a fantastic value with a monthly fee of $10 to see as many movies as desired. Sounds too good to be true, right? Well, that’s because it was. In July of this year, the company went through a shaky period where it did not have enough cash to pay for subscription holders’ movie theater visits, and it’s bitter sweet because the idea behind MoviePass is great by providing customers with incentives to go back to the movies.

            I don’t plan to talk about the business side of MoviePass; however, do check out the link below to watch a video from the YouTube channel Nerd Writer to learn more about the company’s business model and other financial related information. It’s very insightful and gives this short essay more context. Instead, I want to discuss how the business model behind a subscription plan is a great idea for keeping theaters culturally relevant in 2018.

            First off, I love being able to stream movies on my laptop, home console, and smartphone. The opportunity it’s given me to watch films that I either cannot find elsewhere or making movie viewing affordable to someone with my socioeconomic status is astounding. Those luxuries that I just mentioned, movie theaters have a hard time competing with, but for the type of moviegoer who sees on average two or more films a month like myself, it is likely we’d end up seeing a movie in theaters subscription or no subscription (although a subscription plan is great). However, this demographic makes up a small percentage of consumers.

            The average American sees at the most six movies a year, and theaters want to attract these types of consumers who make up this majority. Getting this section of the market is the great part about subscription-based plans to generate more interest amongst the public because of the price point. Getting customers like these into a theater does obviously means more revenue, but it also continues to keep the act of going to the movies relevant in our culture. I would be happy to see a business model that would make subscriptions work for both consumers and businesses. Other theaters like AMC and Cinemarks have started to adopt this idea, and I hope its popularity continues. People have been going to the movies since the early 1900’s and this trend in the market towards a movie theater subscription would help to continue movie theater relevance.  

             Sources: https://www.statista.com/statistics/264396/frequency-of-going-to-the-movies-in-the-us/

         NerdWriter Vid (also used as source): https://www.youtube.com/watch?v=w876zZZIb10&t=59s