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"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 evi

"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?

scarface74 7y ago
At 2.5 movies a month at $24/month, the ticket price is $9.60. A quick Google search shows that the average price of an IMAX ticket is $19.60 During the first two or three weeks, the distributor gets 70% of the ticket price. Worse case, if they see 2.5 IMAX movies on average, AMC would have lost $7.50 in gross profit from a stubs + user. Since kids can’t get a subscription and a lot of the blockbusters are geared toward families, the kids would not only pay full price, they are also more likely to want concessions. As far as the concession spend, its simple well known marketing psychology that when you get something for “free” you’re more likely to spend more when you get there. It’s an affect that has been seen with gift cards, Groupon deals, etc. But when it comes to admin cost, ticket purchasing online and redemption via the handheld devices at the movie was pre-existing infrastructure they had before the Stubs+. How much harder do you think it really is to add logic to account for a stubs+ member is allowed three movies a week? Most of the advertising is done in the theatre.
scarface74 7y ago
Also, they know the behavior of customers before and after they subscribed to Stubs A+. They already had a stubs program where people ordered tickets online and they could track their behavior and changes in behavior after they subscribe. They also know how much they spend on concessions because most stubs members (not just stubs+ members) show their stubs QR code at the concession stand to get points toward discounts.

scarface74 7y ago

At 2.5 movies a month at $24/month, the ticket price is $9.60. A quick Google search shows that the average price of an IMAX ticket is $19.60 During the first two or three weeks, the distributor gets 70% of the ticket price. Worse case, if they see 2.5 IMAX movies on average, AMC would have lost $7.50 in gross profit from a stubs + user. Since kids can’t get a subscription and a lot of the blockbusters are geared toward families, the kids would not only pay full price, they are also more likely to want concessions. As far as the concession spend, its simple well known marketing psychology that when you get something for “free” you’re more likely to spend more when you get there. It’s an affect that has been seen with gift cards, Groupon deals, etc. But when it comes to admin cost, ticket purchasing online and redemption via the handheld devices at the movie was pre-existing infrastructure they had before the Stubs+. How much harder do you think it really is to add logic to account for a stubs+ member is allowed three movies a week? Most of the advertising is done in the theatre.

scarface74 7y ago

Also, they know the behavior of customers before and after they subscribed to Stubs A+. They already had a stubs program where people ordered tickets online and they could track their behavior and changes in behavior after they subscribe. They also know how much they spend on concessions because most stubs members (not just stubs+ members) show their stubs QR code at the concession stand to get points toward discounts.