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Why The Major Theater Chains Are Suspicious Of MoviePass, According To The CEO
Since August of last year, one of the biggest stories in the movie industry has been the emergence of MoviePass. The theater-going subscription service reduced its monthly rates and experienced a massive surge in subscribers as a result. But along the way, MoviePass has faced stark opposition from major theater chains like AMC, which staunchly oppose the service. For Netflix co-founder and MoviePass CEO Mitch Lowe, the suspicion the chains have for MoviePass stems from their aversion to having someone else come between them and the customer, as he explained:
If you think back when Orbitz and Travelocity, Expedia were founded, the airlines and the hotels wished they didn't exist. They want that one-to-one relationship with customers. That's exactly the way the big theaters look at us. They go, 'Geez, we want that one-to-one relationship. We don't want a middleman.'
I am sure that there are countless reasons the higher ups at the big theater chains would cite for why they don't like MoviePass, but Mitch Lowe's explanation certainly sounds logical. The theater chains had a direct relationship with the consumer that they could control, and I imagine they see MoviePass as breaking the directness of that relationship and making money by doing so. The theater chains could create uniformity to the moviegoing experience, carefully setting certain expectations for the consumer and crafting perceived value. MoviePass interrupts and changes that relationship.
The travel websites that Mitch Lowe noted are a fair, if not entirely equivalent comparison. The travel sites are acting as a middleman between the consumer and the hotels and airlines, and you can often get a better price by using them. The hotel and airline industry may have initially resisted this disruption, but eventually they adapted, and the two now peacefully co-exist. MoviePass is different though, in that the potential value added is huge compared to the discounts you might find on airfare by booking through a third party site. The more movies you see a month with MoviePass, the less each ticket averages out to be, thus changing consumer perception of the value of a movie ticket. As of yet, there is no such service that disrupts the airline or hotel industry to this extent (although can someone please get on that, airfare is expensive).
Later in his interview with Recode, Mitch Lowe also noted that independent and mid-sized theater chains are not as adamant in their opposition to MoviePass, with some seeing the service as a way to get people back into the theaters where attendance continues to decline. It will be interesting to see how the battle between the major theater chains and MoviePass shakes out. The theatergoing service has clearly struck a chord, recently passing the 2 million-subscribers mark, less than a month after hitting 1.5 million. Perhaps the service will struggle with profitability and go the way of the dodo, or maybe it will leverage its assets and settle into a symbiotic relationship with the theater chains just like the travel sites did with the airline and hotel industries. Only time will tell.
MoviePass just cut its prices again, but Mitch Lowe's service isn't the only game in town. There are some alternatives to the service worth looking at if you're considering a theatergoing subscription service. There are plenty of movies to see this year, too, regardless of how you're paying, so check out when they're arriving in our release schedule.
How Major Theater Companies Are Reacting to MoviePass. CEO Adam Aron saying, "[I] MoviePass paid AMC, according to our records, $11.88 for each and every ticket that it purchased for our
MoviePass to Charge $2 Extra for Major New Movies - and Add
Why The Major Theater Chains Are Suspicious Of MoviePass
The MoviePass CEO has some thoughts about why the big theater chains are so against his rapidly growing subscription service. Subscribe To Why The Major Theater Chains Are Suspicious Of MoviePass
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MoviePass to Charge $2 Extra for Major New Movies - and Add 3D, IMAX Screenings something that MoviePass only offers at partner theater chains. AMC Theatres CEO on Why New Monthly
MoviePass - Wikipedia
MoviePass has ballooned in just a few short months, but subscribers and theater chains are suspicious of its business model. MoviePass is subsidizing the cost of each ticket its users buy, at a
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How Major Theater Companies Are Reacting to MoviePass the beleaguered movie theater chains were skeptical of the new low-priced entrant, MoviePass paid AMC, according to our records, $11
How Major Theater Companies Are Reacting to MoviePass
Why The Major Theater Chains Are Suspicious Of MoviePass, According To The CEO Since August of last year, one of the biggest stories in the movie industry has been the emergence of MoviePass. The theater-going subscription service reduced its monthly rates and experienced a massive surge in subscribers as a result.
MoviePass now has more than 1 million subscribers - The Verge
(The big four US theater chains -- AMC, Regal, Cinemark and Cineplex -- didn't respond to requests for comment.) AMC says it's looking at ways to block MoviePass, but why would AMC need to block
How Major Theater Companies Are Reacting to MoviePass -- The
MoviePass CEO: Why We Bought Moviefone. It also matches up with a study they did a few years ago with AMC theater chains. according to Lowe, MoviePass customers are also enthusiastic film
CEO: Your $10 MoviePass is still coming, AMC be damned - CNET
For Netflix co-founder and MoviePass CEO Mitch Lowe, the suspicion the chains have for MoviePass stems from their aversion to having someone else come between them and the customer, as he explained: I am sure that there are countless reasons the higher ups at the big theater chains would cite for why they don't like MoviePass, but Mitch Lowe's
Why The Major Theater Chains Are Suspicious Of MoviePass
The business model of MoviePass has faced notable resistance from major cinema chains since its launch; the company's 21-theatre pilot in San Francisco was called off after objections by AMC Theatres and Landmark Theatres, who were included in the slate of locations without their knowledge.
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