MoviePass may fail. Theatre subscriptions are here to stay.
Ah, MoviePass. A victim of its own success and an optimistic assumption that people would eventually fall into the classic gym membership pattern and use it rarely-if-ever after the first few months. (Spoiler alert: movies > gym)
MoviePass’s parent company is floundering. Bleeding money. Rolling out and back new pricing schemes, desperately trying to stumble upon a viable business model. They’ve gone from unlimited movies to one per day. They’ve disallowed multiple viewings of the same movie, even on different days (a real bummer when I irreversibly checked into RBG only to find my husband’s phone wasn’t cooperating). Right now, they’re trying out an Uber-esque surge pricing system. People aren’t loving it, but I think more than anything they’re frustrated by the lack of consistency.
Clearly, MoviePass may not make it, no matter how confident their CEO is to the contrary. But think about it: People increasingly moved to cities, where owning a car is less practical and economic — enter Lyft and Uber. Rent in those cities rose — perfect timing for the rise of Airbnb. Cord cutters rejoice, Netflix, Amazon Prime Video, and Hulu are here for you.
Faltering industry, generally due to the desire to cut costs + a crowdshare model that makes it more affordable for everyone = $$$. What do you expect when you take into account rising housing and healthcare costs, crushing student loan debt, and stagnant wage growth?
MoviePass’s pricing model was wrong. But movie theaters have struggled to keep their numbers up, especially beyond the blockbusters, and companies like MoviePass have brought back the allure of escapism, the ability to take a chance on a movie that could either be terrible or draw you in with little-to-no budgetary implications, the reinstatement of the theatre as a destination of choice. Other companies, including AMC itself, have taken notes from MoviePass’s stumbles and emulated the strength of their premise.
MoviePass may not be forever, but movie theatre subscriptions are here to stay. I guess the question is, what’s the next industry to follow?
