5 ms·

Why do cinemas not like it? They get paid for each ticket and people go more frequently.

by maym86 8y ago

analogmemory 8y ago
I think it was just the editor trying to create a strawman. The only objection I saw was an AMC exec saying their pricing model is flawed. That's not really hating it's existence.
hb3b 8y ago
They foresee Moviepass flexing it's muscle to drop the average cost of tickets below what's already a low margin service. Also, I wonder how many Moviepass users get concessions each time they see a flick.
- jonny_eh 8y ago
  > Also, I wonder how many Moviepass users get concessions each time they see a flick As a MoviePass customer I buy more concessions since my budget isn't blown on the ticket.
  - nixgeek 8y ago
    Ditto.
    - cheeze 8y ago
      I buy a soda, and bring a friend with my extra pass and they usually get a large popcorn. Very happy with it. I've seen tons of good movies I wouldn't have seen with friends that I wouldn't have seen.
tristanj 8y ago
AMC spells it out in a press release. http://investor.amctheatres.com/file/Index?KeyFile=389925821 http://investor.amctheatres.com/file/Index?KeyFile=389925821 The AMC average ticket price for watching a movie at AMC Theatres in the most recent financial quarter was $9.33. From what we can tell, by definition and absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month. [...] In AMC’s view, that price level is unsustainable and only sets up consumers for ultimate disappointment down the road if or when the product can no longer be fulfilled. AMC also believes that promising essentially unlimited first-run movie content at a price below $10 per month over time will not provide sufficient revenue to operate quality theatres nor will it produce enough income to provide film makers with sufficient incentive to make great new movies. Therefore, AMC will not be able to offer discounts to MoviePass in the future, which seems to be among their aims. While AMC is not opposed to subscription programs generally, the one envisioned by MoviePass is not one AMC can embrace.
- cheriot 8y ago
  > AMC also believes that promising essentially unlimited first-run movie content at a price below $10 per month over time will not provide sufficient revenue MoviePass has proven theaters are interesting to more people than I'd have thought in a world of 70"+ TVs and 4K streaming. A smarter Pass could experiment with non-peak times, second release movies, and concessions. Average ticket price really isn't the best metric with the fixed costs of a theater.
  - pertymcpert 8y ago
    It's also a way to get out of the house with your SO if you both like movies.
robryan 8y ago
If Movie Pass manages to do well they are at the mercy of a middle man that can turn supply on and off for their cinemas and ultimately crunch them down on price. If Movie Pass fails it still helps set an unrealistic price for the cinemas who won't be able to match it. It may drive even more people away from cinemas who no longer wish to pay full price.
jogjayr 8y ago
It turns them into a commodity supplier to MoviePass. Who wants to be a commodity supplier?

Why do cinemas not like it? They get paid for each ticket and people go more frequently.

by maym86 8y ago

Why do cinemas not like it? They get paid for each ticket and people go more frequently.

I think it was just the editor trying to create a strawman. The only objection I saw was an AMC exec saying their pricing model is flawed. That's not really hating it's existence.

hb3b 8y ago

They foresee Moviepass flexing it's muscle to drop the average cost of tickets below what's already a low margin service. Also, I wonder how many Moviepass users get concessions each time they see a flick.

jonny_eh 8y ago
> Also, I wonder how many Moviepass users get concessions each time they see a flick As a MoviePass customer I buy more concessions since my budget isn't blown on the ticket.
- nixgeek 8y ago
  Ditto.
  - cheeze 8y ago
    I buy a soda, and bring a friend with my extra pass and they usually get a large popcorn. Very happy with it. I've seen tons of good movies I wouldn't have seen with friends that I wouldn't have seen.

tristanj 8y ago

AMC spells it out in a press release. http://investor.amctheatres.com/file/Index?KeyFile=389925821 http://investor.amctheatres.com/file/Index?KeyFile=389925821 The AMC average ticket price for watching a movie at AMC Theatres in the most recent financial quarter was $9.33. From what we can tell, by definition and absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month. [...] In AMC’s view, that price level is unsustainable and only sets up consumers for ultimate disappointment down the road if or when the product can no longer be fulfilled. AMC also believes that promising essentially unlimited first-run movie content at a price below $10 per month over time will not provide sufficient revenue to operate quality theatres nor will it produce enough income to provide film makers with sufficient incentive to make great new movies. Therefore, AMC will not be able to offer discounts to MoviePass in the future, which seems to be among their aims. While AMC is not opposed to subscription programs generally, the one envisioned by MoviePass is not one AMC can embrace.

cheriot 8y ago
> AMC also believes that promising essentially unlimited first-run movie content at a price below $10 per month over time will not provide sufficient revenue MoviePass has proven theaters are interesting to more people than I'd have thought in a world of 70"+ TVs and 4K streaming. A smarter Pass could experiment with non-peak times, second release movies, and concessions. Average ticket price really isn't the best metric with the fixed costs of a theater.
- pertymcpert 8y ago
  It's also a way to get out of the house with your SO if you both like movies.

robryan 8y ago

If Movie Pass manages to do well they are at the mercy of a middle man that can turn supply on and off for their cinemas and ultimately crunch them down on price. If Movie Pass fails it still helps set an unrealistic price for the cinemas who won't be able to match it. It may drive even more people away from cinemas who no longer wish to pay full price.

jogjayr 8y ago

It turns them into a commodity supplier to MoviePass. Who wants to be a commodity supplier?