Not even Netflix could pull these numbers off. Mitch Lowe stated that they expect to have 5 million by the end of the year. In February, they had reached two million, and just in March, the monthly subscription was dropped to $6.95, plus a regular fee. After lowering their prices in August to $10.95, they accrued an additional one million by October. A year ago, they had just 20,000 subscribers. ![]() In the end, MoviePass shares revenue with everyone that earns more on the additional theater traffic that they create.įrom here, MoviePass plans to use unprecedented subscriber growth to fuel their revenue growth. By getting us to go to movies, they increase revenue for each level in the supply chain. Now, if subscribers use MoviePass at Landmark theaters, they can take advantage of e-ticketing, seat selection, and premium platform reservations. Just last week, MoviePass announced that it had reached another deal with Landmark Theaters. They bargained for discounts of up to $3 on tickets, portions of concessions revenue, and revenue on advertising and consumer turnout. Since February, MoviePass has been able to start doing this by signing their first contracts with 1,000 theaters and distributors. MoviePass has the potential to profit on every one of these companies. Finally, the streaming services sit at the bottom of the chain. Following them are the movie theaters, which further account for ticket and concessions sales. At the top of this supply chain are the production studios, such as Sony, Disney, and Warner Bros., and then come the distributors like Lionsgate and Paramount. In recent press releases, MoviePass revealed that their users go to theaters twice as often and spend more than double on concessions.Īs you can imagine, the entire movie industry supply chain benefits from this (Figure 1). In fact, they count on people taking advantage of an opportunity and spending more when someone else is footing the bill. In a way, MoviePass practically pays you to see a movie, so users will go to theaters. Pair these numbers with the introduction of streaming and you can easily see the issue. Since 2002, ticket prices have increased by 54% while ticket sales have fallen by 22%. Supply Chain Revenue-Sharing Modelįirst of all, by offering low prices, MoviePass increases theater traffic and "reconnects the cord" of a struggling movie industry. MoviePass wants users to go to as many movies as they can. ![]() So, why would a subscription-based company's business model be to lose money every time a subscriber uses the subscription? You probably figure that they do not want the subscribers to go to see movies too often. How could you lose on this deal? It looks like your gain is MoviePass' loss. The company, Helios and Matheson Analytics ( OTC:HMNY) who owns 82% of MoviePass, will pay the theaters for you to watch 30 new release movies a month. Today, you pay $6.95 a month to get a MoviePass.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |