MoviePass Suspends Service Indefinitely

Fiscally challenged MoviePass suspended service midday July 4 for an indefinite period of time to revamp its app.

The eight-year-old movie ticket subscription pioneer, in an email to subscribers, said the stoppage was in order to “provide the level of service you deserve.”

“We have listened and we understand the frustrations of our subscribers,” Mitch Lowe, CEO of MoviePass, said in the July 3 email. “We plan to make this improvement by utilizing an enhanced technology platform, which is in the final stages of completion.”

During the shutdown, MoviePass will not take on new subscribers. Existing subs will be credited for the number of affected days once the service continues.

Owned and operated by Helios Matheson Analytics, the service at its peak generated more than 3 million subscribers paying $9.95 for daily access to theatrical releases.

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The business model quickly proved unsustainable as MoviePass paid exhibitors face value for each ticket consumed by subscribers. Unable to reduce ticket fees and market subscriber data to exhibitors, the service hemorrhaged money — losing $329.3 million, on revenue of $232.3 million in 2018.

In March Helios said it received nearly $6 million in funding from an unidentified investor.

“There’s never a good time to have to do this,” Lowe said. “But to complete the improved version of our app, one that we believe will provide a much better experience for our subscribers, it has to be done.”

Regardless, movie subscription service appears here to stay as exhibitors grapple with burgeoning over-the-top video competitors.

AMC Stubs A-List service has more than 800,000 subs, while rival Regal Cinemas is working on its own branded service. Atom Tickets and Cinemark have separate subscription plans in place.

 

 

AMC Theatres Ticket Service Tops 700,000 Subscribers

AMC Theatres said its Stubs A-List subscription ticket service added 100,000 subscribers in January and February to increase its membership base above 700,000.

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AMC Theatres launched A-List (priced from $19.95 monthly) on June 26, 2018 and was originally expected to hit 500,000 members 12 months after launch. Membership includes access up to three movies per week, in every available AMC showtime and format, including Imax at AMC, Dolby Cinema at AMC, RealD 3D and Prime at AMC.

AMC said its conventional Stubs A-List membership program has totaled 14 million attendees, including the purchase of traditionally-priced tickets for family and friends.

AMC Stubs Premiere and A-List members receive a $5 credits for every 5,000 points earned, which translates to a 10% credit toward future AMC purchases.

“With every passing milestone, Stubs A-List is proving to be a huge benefit to our guests, our studio partners and our shareholders,” CEO Adam Aron said in a statement. “Members are watching more movies than they did before A-List was created, and they’re bringing their friends and family members along, who are paying for their tickets at full price.”

 

AMC Theatres Ticket Subscription Service Tops 380,000 Members

AMC Theatres Sept. 26 announced that AMC Stubs A-List – the ticket subscription service launched three months ago to compete against MoviePass – has generated more than 380,000 monthly subscribers – including 120,000 members in the past six weeks.

The nation’s largest theatrical chain heralded the sub growth during the traditional “slow period” at movie theatres in late August and September, as the summer blockbusters give way to school schedules.

AMC said A-List is also driving box office revenue at its theaters, as the service’s impact on attendance, along with AMC’s other initiatives and a film slate, has AMC in position to increase U.S. attendance year over year for the first time since 2015, excluding the impact from the Carmike acquisition.

A-List subs are watching a wide variety of movies, including more than 363 different movie titles in just under 90 days. Early program analysis indicates incremental movie-going frequency among members after joining the program is significant. AMC noted that more than 45% of A-List subs were not previously signed up to its existing AMC Stubs loyalty program.

AMC also recently announced that its 12-month protection guarantee from the date of a member’s enrollment against any increases in A-List monthly pricing has been broadened to further provide consumers with a sustainable value. The 12-month protection guarantee for members of A-List enrolling anytime in 2018 now includes no changes in the pricing or benefits from the program within a member’s initial 12 months after joining the program.

“The early success of this program is evident as AMC is projecting an attendance increase at our U.S. theatres for the first time in three years,” CEO Adam Aron said in a statement. “This is very good for AMC, and very good for our guests and movie studio partners.”