MoviePass Cannonballs the Movie Industry

Total Ticket and Revenue for Domestic Cinemas Over Time, The Numbers
Ticket Prices in USD Over Time, Statista

“When you do a subscription, especially an all-you-can-eat, the first subscribers you get, about 11% of the total, are going to be in high cost markets and they’re going be people who see a lot of movies. It’s like health insurance: The first sign ups are the people that are going go to the hospital. You have to weather the storm to get to the profitable subscribers. You’ve got to get enough breakeven customers to off-set the expensive ones”

and further,

“Like any unlimited service, when subscribers first start, they gorge on movies in the first three or four months. Then they slowly but surely settle into a pattern which is still double what they used to do,” CEO Lowe explained. “Our target is someone who only spent $50 last year going to the movie theaters — and now at $9.95, they’re spending $120 at movie theaters a year.

Ultimately, MoviePass won’t make a profit off their core subscription model. They just need it to be good enough for the long enough.

There is a new boss in town

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