August 30, 2018
Looking to retain subscribers and diversify revenue streams, fiscally-challenged ticket subscription service MoviePass Aug. 30 announced a promotional deal with Postmates, the San Francisco-based online courier service.
Postmates gives consumers access — via courier delivery — to more than 250,000 local merchants that were previously inaccessible online in more than 385 cities. Postmates has helped create an alternative infrastructure for local businesses to better compete against retail goliaths such as Walmart, Amazon and Target.
The agreement affords MoviePass subs special discounts and credit toward both services through promotions within the MoviePass app.
MoviePass will promote Postmates within its app and on corporate parent Helios and Matheson Analytics’ Moviefone.com website and provide subs with access to Postmates delivery credits, a week-long free trial of subscription service, Postmates Unlimited, and a credit toward one month of MoviePass.
MoviePass CEO Mitch Lowe said the pact is part of a larger strategy to provide an array of deals to subs, tapping different companies and brands to develop “creative and innovative” consumer offerings.
Previous MoviePass brand partners include iHeartMedia, Fandor, Costco and others. Additionally, this relationship furthers MoviePass’ ongoing effort to develop non-subscription-based revenue channels.
“Knowing that the vast majority of our subscribers generally have at least one streaming subscription at home, it was a no-brainer to bring them real value not just at the movies but on the comfort of their couches through our relationship with our friends at Postmates,” Lowe said.
Diversifying revenue streams would appear to be a mandatory considering HMNY’s stock is trading at 2 cents per share as Wall Street and consumers turn their backs on the MoviePass business model – and ongoing changes to it.
The $9.95 monthly service a year ago generated millions of subs offering daily access to a theatrical screening. With MoviePass paying exhibitors face value for every ticket used by subs, the service has been hemorrhaging millions of dollars more than it generates. As a result, theatrical access has now been restricted to three screenings monthly, in addition to select movies and exhibition times.
At the same time, AMC Theatres launched a rival service enabling subs access to three screenings weekly for $19.95 per month. The service has more than 260,000 subs.