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Anecdote: I paid $18 for a single movie ticket (no peripherals) at an AMC not even two months ago. To be fair, the theater was packed so they must have been doi

Anecdote: I paid $18 for a single movie ticket (no peripherals) at an AMC not even two months ago. To be fair, the theater was packed so they must have been doing something right, but I couldn't believe the price increase even over the last year in movie ticket prices. I guess AMC's downfall strategy is similar to that of AT&T's.

Rebelgecko 7y ago
AMC's version of moviepass seems a lot more sustainable than Moviepass
- listenallyall 7y ago
  Disagree - for one, see AMC's profit and revenue trends, easily summed up in the stark decline in the stock price. AMC's program is flawed in that it allows (encourages?) its members to use the theater's most valuable inventory, i.e. seeing Star Wars in 3-D or Dolby or IMAX on opening night. The people who joined likely made that decision based on the fact the the membership cost less than their typical ticket spend, thus it costs AMC in lost revenue. Plus the costs of advertising it, administering it, etc.
  - scarface74 7y ago
    Movie theaters have never made much money from ticket sales. They make most of their money from concession sales and to a lesser extent advertising before the movie starts. Also, for rev share purposes , they count each ticket sold via the subscription no matter what at $8.99
    - listenallyall 7y ago
      Ticket revenue is the majority of total revenue, while concessions have a much higher margin. For the last quarter with published results, AMC's gross profit on exhibition exceeded that of F&B. ==> http://investor.amctheatres.com/Cache/1001258324.PDF?O=PDF&T=&Y=&D=&FID=1001258324&iid=4171292 http://investor.amctheatres.com/Cache/1001258324.PDF?O=PDF&T... MoviePass sent additional people to the theater --> additional concession sales + additional ticket sales AMC A-List customers occupy prime seats that would have likely been sold anyway --> no effect on concessions, reduced ticket revenue
      - scarface74 7y ago
        They also said Based on an average monthly frequency of 2.40x for our A-List members in the third quarter, their associated full-price bring-along guest attendance, their food and beverage spend and the price increases in the first quarter, we believe the A-List program was profitable in the third quarter and nine-months ended September 30, 2019 compared to our estimated results if the program had not existed. A-List membership levels continue to exceed our expectations despite our price increase and competitive offerings.
        listenallyall 7y ago
        Lol, you've tried to defend AMC before on other threads. Read between the lines. "We believe" is about the lowest level of confidence one could attribute to a statement like this. No data, no methodology, no measurements. It's equivalent to "we hope" or "we guess" or "we really need this to be true." The company's stock has fallen by 80+%. Management is under extraordinary pressure to defend their major decisions, including the rollout of A-List and the rejection of partnering with MoviePass. OF COURSE management is going to claim their decisions were correct, but they are offering ZERO hard data or evidence to that end.
        scarface74 7y ago
        As opposed to the data that you offered? Are you claiming that AMC is lying to investors - if so, you should report them to the FTC. But it’s amazing that you believe some numbers from AMC but not others from your same citations Well, obviously Movie Pass didn’t have a great business model...
        listenallyall 7y ago
        "We believe" is AMC's hedge against actually lying. Maybe they do actually believe it. Irrelevant. Any 3rd party shouldn't believe it, certainly without any evidence. 2.4 visits isn't evidence. I believe the number, but it is meaningless on its own. How many of those tickets are for sold out shows? What pct are utilizing free upgrades (IMAX, Dolby, etc)? How much did these individuals spend prior to membership? What's the average concession spend vs non-members? What are the admin and advertising costs?

Rebelgecko 7y ago

AMC's version of moviepass seems a lot more sustainable than Moviepass

listenallyall 7y ago
Disagree - for one, see AMC's profit and revenue trends, easily summed up in the stark decline in the stock price. AMC's program is flawed in that it allows (encourages?) its members to use the theater's most valuable inventory, i.e. seeing Star Wars in 3-D or Dolby or IMAX on opening night. The people who joined likely made that decision based on the fact the the membership cost less than their typical ticket spend, thus it costs AMC in lost revenue. Plus the costs of advertising it, administering it, etc.
- scarface74 7y ago
  Movie theaters have never made much money from ticket sales. They make most of their money from concession sales and to a lesser extent advertising before the movie starts. Also, for rev share purposes , they count each ticket sold via the subscription no matter what at $8.99
  - listenallyall 7y ago
    Ticket revenue is the majority of total revenue, while concessions have a much higher margin. For the last quarter with published results, AMC's gross profit on exhibition exceeded that of F&B. ==> http://investor.amctheatres.com/Cache/1001258324.PDF?O=PDF&T=&Y=&D=&FID=1001258324&iid=4171292 http://investor.amctheatres.com/Cache/1001258324.PDF?O=PDF&T... MoviePass sent additional people to the theater --> additional concession sales + additional ticket sales AMC A-List customers occupy prime seats that would have likely been sold anyway --> no effect on concessions, reduced ticket revenue
    - scarface74 7y ago
      They also said Based on an average monthly frequency of 2.40x for our A-List members in the third quarter, their associated full-price bring-along guest attendance, their food and beverage spend and the price increases in the first quarter, we believe the A-List program was profitable in the third quarter and nine-months ended September 30, 2019 compared to our estimated results if the program had not existed. A-List membership levels continue to exceed our expectations despite our price increase and competitive offerings.
      - listenallyall 7y ago
        Lol, you've tried to defend AMC before on other threads. Read between the lines. "We believe" is about the lowest level of confidence one could attribute to a statement like this. No data, no methodology, no measurements. It's equivalent to "we hope" or "we guess" or "we really need this to be true." The company's stock has fallen by 80+%. Management is under extraordinary pressure to defend their major decisions, including the rollout of A-List and the rejection of partnering with MoviePass. OF COURSE management is going to claim their decisions were correct, but they are offering ZERO hard data or evidence to that end.
        scarface74 7y ago
        As opposed to the data that you offered? Are you claiming that AMC is lying to investors - if so, you should report them to the FTC. But it’s amazing that you believe some numbers from AMC but not others from your same citations Well, obviously Movie Pass didn’t have a great business model...
        listenallyall 7y ago
        "We believe" is AMC's hedge against actually lying. Maybe they do actually believe it. Irrelevant. Any 3rd party shouldn't believe it, certainly without any evidence. 2.4 visits isn't evidence. I believe the number, but it is meaningless on its own. How many of those tickets are for sold out shows? What pct are utilizing free upgrades (IMAX, Dolby, etc)? How much did these individuals spend prior to membership? What's the average concession spend vs non-members? What are the admin and advertising costs?