MoviePass Relaunching With New Unlimited Plan as Company Aims to Be 'More Humble' in 2019

[MacRumors]

Six months after MoviePass began placing numerous restrictions on its subscribers in an attempt to prevent the service from completely shutting down, the company today has relaunched with a new advertising campaign and the promise of a new unlimited plan.

As reported by Variety, the so-called "MoviePass 2.0" is rolling out with a few new plans this month, with prices that change depending on your region. Plans start at $9.95/month for three movies per month, but you're limited to only a selection of specific films available each day. This "Select" plan is cheaper for people in the middle of the country, because tickets are generally cheaper in smaller cities, and in big cities it'll be priced at $14.95/month.

There's a mid-tier "All Access" plan priced at $14.95 in small cities, allowing access to all 2D films with the usual three films per month limit. Lastly, the top-tier plan is called "Red Carpet," and it is priced at $19.95/month. On this plan, subscribers can see any three movies of their choosing per month, even in IMAX, 3D, and other premium formats. In big cities, Red Carpet will cost as much as $24.95/month.

All of these new plans still restrict every MoviePass subscriber to just three movies per month, but MoviePass executive vice president Khalid Itum said that the company is gearing up to reintroduce an unlimited subscription plan very soon. Next week, a form of the original MoviePass unlimited plan will be unveiled, but pricing and specific plan details were not covered today.

MoviePass says that after losing subscribers steadily over the past few months, it has started to again increase its numbers and customer sentiment has improved.

Prior to launching the new plans, only 44% of customers had a positive feeling towards MoviePass, according to data collected by NetBase. Last week, that rose to 59% of respondents having a positive view.

"I feel like we're turning a corner," said Itum.

In total, Itum says that MoviePass will stop focusing on being a "disruptor" of the industry in attempt to remove the friction between itself and theater chains. This means it will no longer take large cuts of any concessions it helps to sell by getting people to theaters, but will instead charge a small service fee for items it sells. The company will also no longer ask theaters to give MoviePass a discount on tickets that it sells.

Itum is also working on a "red label" solution for exhibitors, which would help them to launch their own theater subscription programs using the MoviePass platform and existing technology. Overall, the vice president described MoviePass as adopting a "more humble" posture in 2019: "Our new business strategy is stabilize, optimize, and grow," he said.

Whether that works for the company remains to be seen. MoviePass originally made waves in August 2017 as the company dropped the price of its main subscription plan to just $9.95/month, allowing users to watch one standard 2D film every day of each month. That price point lasted for nearly one year, and eventually the company added on surge pricing, blockbuster movie restrictions, price hikes, and removed the unlimited monthly plan completely.

Article Link: MoviePass Relaunching With New Unlimited Plan as Company Aims to Be 'More Humble' in 2019

 

[mgollaher92]

MoviePass changing up their plans again? Didn’t know it was that time of the month already.

 

[vicviper789]

Unlimited? Fool me once...

 

[adamjackson]

MoviePass needs critical mass to make this profitable. Losing subscribers is the inverse of that. They need the majority of their users to not use the entire allocation...just like people who pay for streaming and listen a few times a day to offset the cost of streamers who leave their music playing 24/7. If they have 50K people watching 3 movies a month, they're going to go out of business soon. They need another 100K people watching 1 movie a month.

 

[JohnnyApple$eed]

Just stop

 

[Zoboomafoo]

Lol, that’s some awesome statistical manipulation. Of course your customer sentiment is going to go up when you’re bleeding customers. The customers that don’t like you left!

 

[Lord Hamsa]

Meanwhile, for $20/month, I can see any three (non-special event) screenings pre WEEK at AMC, plus get their benefits of their VIP program. (Regal are you listening?)

MoviePass lost all market credibility with their constant changes for the worse. I can't see how anyone can ever trust them again to provide even this minimal level of service without yanking out the rug under them on no notice.

 

[Exile714]

MoviePass needs critical mass to make this profitable. Losing subscribers is the inverse of that. They need the majority of their users to not use the entire allocation...just like people who pay for streaming and listen a few times a day to offset the cost of streamers who leave their music playing 24/7. If they have 50K people watching 3 movies a month, they're going to go out of business soon. They need another 100K people watching 1 movie a month.

MoviePass reminds me of that episode of The Office where the new paper company sits down with a financial advisor and learns they’re going broke. “I looked at the numbers and as sales grow we’ll be profitable.” “Under a fixed cost system yes, but that’s not how it works.” “Crunch the numbers again.” “It’s a program, you can’t just...” “Just, crunch them.”

They could ONLY ever be profitable under the gym membership model, as in 90% of people PAY, but don’t ever use the facilities.

 

[newyorksole]

Mannnn I had an awesome run with the original MoviePass. Sad that it had to crash and burn.

 

[12vElectronics]

I still don’t understand what MoviePass does? Are there really that many people watching a movie a day or 3 movies a month in theatres? I’m lucky if I go twice in a year!

 

[scuac]

How is this company still in business? Who are the investors keeping it alive? I would like to meet them, I have a nice, slightly used bridge over the bay area I would like to sell them.

 

[Mycya4me]

I had MoviePass.. I got the Annual pass Nov 2017.. Due to the changes I was NOT even able to even see 1 movie in Oct and then only 2 in Nov. at that rate it would have cost me More to keep MoviePass. If they just get rid of the selected movies at the lower price I might come back.. But then again they would have to wave the 9 months between leaving and rejoining.. Yes Regal are you listing.. I now only go to the AMC and the other couple budget theaters.

 

[jlc1978]

I still don’t understand what MoviePass does? Are there really that many people watching a movie a day or 3 movies a month in theatres? I’m lucky if I go twice in a year!

Asymmetric information and the principal - agent problem. The individual signing up for MoviePass knows how many movies they may watch, and if the cost of MP < individual tickets they will sign up. If you only go occasionally it isn't worth it and you don't sign up. As a result MP would tend to get customers who watch a lot of movies and render their unlimited business model untenable in the long run. In addition, once the marginal costs of one extra movies is essentially zero, the customer, who is already predisposed to going to the movies, may go more often even if the movie is of little interest.

AMC took a slightly different tack in limiting the number per week and to their own chain. That gives them a bound on their total liability (x customers x 3 movies x fees to show the movies) and by adding the VIP membership may encourage users to buy more concessions where there is real money. In addition, as a large chain, they may be able to negotiate breaks in fees with distributors. They could, for example include the ticket price in reporting the box offices but not have to pay, or pay reduced price, for pass users. If they get more viewers, the box goes up, a win for the studio in advertising and creating hype, and they get the revenue from the pass less reduced or zero fees plus any concession sales.

 

[CalvinBroadus]

How about no

 

[simplynando]

Yeeaah, I'll stick with my AMC A-List subscription. 3 movies PER WEEK in any format, options to reserve movies/seats ahead of time, seamless/easy interface in their app, automatic enrollment in AMC rewards, no need for a physical card and there's even 2 AMC theaters in my city. Also, your price is locked-in for 12 months from the start date of your membership!

MoviePass proved their business is unsustainable and too unpredictable.

 

[Surfer13134]

These guys are still around? They have Burt to many bridges by changing the plans to existing customers. All while my local theater does $5.00 movies on Sundays, any movie just not iMax or 3D.

 

[aaronhead14]

It's too late. This company screwed over all their customers and now they're regretting it haha. It's only a matter of time before they go completely down under.

 

[DaveNinja]

Last I heard, you had to pay for the MoviePass plans with a money transfer since no credit card companies would deal with them after all the charge backs they had to do.

 

[Scottsoapbox]

People have time to see 3 movies a month at the theater!?! Man I miss my youth: so much time. (Though so little money).

 

[macadamianuts]

I don't think there is anyone left as gullible to sign up for moviepass after all these mess for the last year. They are rip-off. I already have Sinemia and this new mpass plans are just a copy of Sinemia plans. Except sinemia really cares about its customers

 

[nutmac]

There's a small movie theater chain called Showplace Icon that offers $6 movie ticket every Tuesdays. And since the theater chain is so new, all seats are reserved sitting with latest projection and sound technologies (no IMAX or Dolby Theater though, and very little no 3D screens).

To me, that is my MoviePass.

 

[augustrushrox]

Moviepass's business model is exactly why health insurance providers being forced to cover pre-existing conditions is an economically worthless battle. Adverse selection.

 

[fathergll]

People have time to see 3 movies a month at the theater!?! Man I miss my youth: so much time. (Though so little money).

Seriously. Being under 21 and especially under 18 movies were a weekly thing. Also in age before the internet and when movies took at least a year or so to come out to home release it was a routine.

Once I got old enough to bars/clubs movies for me pretty much stopped. Especially today when access to HD/UDH sources and large screens make the viewing experience at home good enough for most releases. I average 0-3 movies a year at this point. I saw 3 movies in 2017(Alien, Dunkirk, Last Jedi) and I haven't been to the theater since the end of 2017.

edit - i forgot i saw IT as well in 2017. I really dropped off.

 

[ImAnAgent]

I didn't think they were still around honestly.

 

[unplugme71]

MoviePass needs critical mass to make this profitable. Losing subscribers is the inverse of that. They need the majority of their users to not use the entire allocation...just like people who pay for streaming and listen a few times a day to offset the cost of streamers who leave their music playing 24/7. If they have 50K people watching 3 movies a month, they're going to go out of business soon. They need another 100K people watching 1 movie a month.

This is why I think unlimited plans are stupid. Charge me $10 a month, give me 5 free basic tier movies a month and charge me $2 for every new/recent release.