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Studios take the bulk of the ticket price, and MoviePass is paying the full price of the ticket. Theater chains make the bulk of their profit on refreshments, s
by dahdum 9y ago
Studios take the bulk of the ticket price, and MoviePass is paying the full price of the ticket. Theater chains make the bulk of their profit on refreshments, so I don't think they're all that terrified.
MoviePass has to grow large enough to be able to negotiate deals with studios, like Disney, or raise rates significantly to cover the true cost of the service. If they raise rates too much, they could start hemorrhaging to the individual theater chain programs.
It's a cool service, but it can't last like it is.
- nether 9y agoThe average American only spends $45 per year on movie tickets (5 movies, $9 per ticket). MoviePass costs $120 per year. On the internet, we disproportionately hear from those in big cities, where tickets cost much higher than average, but that is not what most of country experiences. The viability of MoviePass depends on whether they capture enough people outside of major cities, and that they do not increase their movie viewing significantly.
- djsumdog 9y agoI'm glad you mentioned theater revenue. When I worked in a theater, my manager would tell me they saw less than 5 cents per ticket on most movies, maybe a little more for independent films. The $2.85 small bag of popcorn cost less than a penny in raw material to make. We made minimum wage with no overtime (theaters got a tax loophole back then; not sure if they still do) so even factoring in labor and electricity, it's still a huge profit margin. Theaters chain execs love it I'm sure. Still even if/when MoviePass goes under, the studios will probably take a small hit for a while, but I'm sure they'll recover.