January 19, 2018
Subscription ticket service MoviePass and corporate parent Helios + Matheson Jan. 19 announced the launch of a subsidiary to co-acquire movies with distributors.
The announcement was made at The Sundance Film Festival during MoviePass’ content series, “Off-Script: The Future of Film,” to a room of filmmakers, producers, directors, investors, distributors, and other industry executives.
MoviePass says that through its business model it is purchasing about 3% of domestic box office. That percentage increases to more than 10% of a particular title’s domestic box office when it uses a series of levers within its app and marketing-based platform to impact a consumer’s selection of a particular independent film.
It claimed upping by 10%+ box office performances of The Post, Three Billboards Outside of Ebbing, Missouri, Call Me By Your Name and The Shape of Water.
“We’ve experienced enormous success bringing people back into the theaters since our launch in August and with an influx of business from distributors, have proven the impact of our marketing over and over again, giving them an incremental lift in ticket sales,” CEO Mitch Lowe said in a statement. “Given the successes we have demonstrated for our distributor partners in ensuring strong box office in the theatrical window, it’s only natural for us to double down and want to play alongside them – and share in the upside.”
By boosting performance in the theatrical window, MoviePass said it is creating an annuity and benefiting from greater downstream revenues on all platforms, including theatrical, home entertainment, digital, physical, transactional (Blu-ray Disc, DVD, electronic sell-through and pay-per-view), in addition to network TV, cable, airlines and hotels, among other revenue streams.
“We aren’t here at Sundance to compete with distributors, but rather to put skin in the game alongside them and to bring great films to the big screen across the country for our subscribers,” said Ted Farnsworth, CEO of Helios and Matheson Analytics Inc. “We’re open for business.”