January 9, 2018
Theatrical ticket subscription service MoviePass Jan. 9 announced it has reached 1.5 million subscribers – less than 30 days after topping 1 million members.
The New York-based $9.95 monthly service, which enables users free daily access to one screening, has been selling discounted annual passes through Costco.
“MoviePass is attracting people back to the movie theaters by lowering their cost, which we believe is transformational for the industry,” Ted Farnsworth, CEO of corporate parent of Helios and Matheson Analytics, said in a statement.
With the service obligated to pay major exhibitors full price for any tickets redeemed, Wedbush Securities analyst Michael Pachter contends MoviePass – absent any discounts – has to reach 2 million subs to break even.
In addition, for the service to make a gross profit, on average each of its subs would have to visit the theater at most once a month. Two or more visits per month on average would drive significant losses for the company, at least until it is able to secure additional sources of revenue.
As a result, the MoviePass seeks to buttress margins marketing information gathered from subscribers.
“We believe the data [collected] from these moviegoers will become an important asset to our partners and the future of the movie industry,” said Farnsworth.