(pic credit: http://experience-ny.com/en/the-metrograph-new-yorks-cinema-paradisio/)
I love movies. I used to go to movie theaters a lot when I lived in Moscow. Once I went to Amsterdam for three days and spent two of them in a theater — the two parts of Lars von Trier’s “Nymphomaniac” just came out (not great, but the theater was sublime). Tickets in Europe cost no more than $7, half the price of New York ($15!) -- way too much for a young cinephile.
The Metrograph, Lower East Side's movie theater, is absolutely beautiful. Some media referred to it as “the coolest new movie theater in the world”. When I came there for the first time, there were good-looking bearded guys and well-dressed girls slurping fancy cocktails and chewing handmade candies (there’s a small artisanal candy store inside).
“Do you think these people really pay $15 per ticket? They look so at home here, they must be regulars.”, — I turned to my friend. That’s when one of the guys discreetly approached and intimated: “You can watch movies every day for free if you sign up for a monthly $10 movie pass.”
Business Model
I signed up for MoviePass the next day, paid $10 and got my membership card in in three weeks. The idea is that simple: you pay a $10 subscription every month and can watch one movie daily. It turns out most New York theaters are involved in this program (at least my favorites —Metrograph, IFC and BAM). And when you want to see a movie, you can use your phone app and MasterCard debit card to buy a ticket. You don’t have to pay for it, MoviePass transfers money to your debit card and you pay with it.
I have no idea why all New Yorkers haven’t signed up for the project yet. The company has been around for six years. But they’ve dramatically cut their prices last year, which is probably why it’s not that popular.
Also I still don’t fully get their business model although I’ve read interviews with their CEO, ex-Netflix exec, Mitch Lowe. He says the company is going to accumulate a large marketing database about moviegoers — like their viewing habits, etc. We all know data is incredibly valuable these days. But does it really worth it to pay $15 for millions of subscribers every day?
(photo credit: http://observer.com/2013/10/and-action-movie-theaters-do-another-take-during-new-yorks-silver-screen-revival)
Adversaries
Since its launch, MoviePass has faced objections from major cinema chains, particularly the AMC Theatres. This is another thing that I don’t really get: it looks like MoviePass pays the whole price to the theater. Moreover, you are more likely to buy popcorn & soda with the money you save on the ticket. So why aren’t the chains satisfied?
Some predict that could be an “Uber” model where companies like MoviePass use mobile apps to channel moviegoers to specific movie theaters. If we mirror Uber’s model onto the movie market, it would seem like movie chains could find ways to partner with the new generation of industry players.
Also, I’ve read some funny comments about moviepass. Despite the great bargain, some subscribers write, “you can watch only one movie in 24 hours!” Ha!
It would be interesting to hear comments from the industry insiders. Is MoviePass system profitable for filmmakers, film studios, movie theaters? I definitely see benefits for film buffs such as myself. But I also think indie theaters and movies that can’t afford huge publicity budgets to attract the masses would benefit from it — people would more likely to take a chance to a modestly-priced, well reviewed film they might otherwise be hesitant to see.
Disclaimer: No, MoviePass hasn’t paid me a cent for that post.
This is one of my favorite movies I've seen recently:
