Movie pass fails with the cinema-flat rate


The company movie pass has lured with a cheap cinema subscription the Americans back in front of the canvas. The data of the moviegoers. But the Plan didn’t work. Anne Schwedt, Germany, from New York.

The subscription card movie pass

9,95 $ a month for this price, the movie pass can go to owners in the US to the cinema every day. No matter what movie, no matter when. With an average regular price of more than $ 16 per movie in the movie pass for cinema Fans in New York, even at less than one cinema visit per month. “If you go more than Once, saving you even more”, says a cinema visitor in Manhattan.

The company Helios and Matheson Analytics seemed to have in the autumn of last year, the great Los drawn. The company bought a majority stake in movie-pass – a previously sleepy subscription service for about 20,000 movie-lovers. The new owners lowered the monthly price from 50 to 9.95 dollars and within a few months the number of customers exploded to over three million. The share price rose from 2.5 dollars to more than $ 30, up to seven percent of all ticket sales were in the U.S. on the movie pass. It seemed as if the big screen in the age of Netflix and Co would experience a Comeback.

Lack Of Business Model

Today, less than a year later, is the enthusiasm, however, little to be desired. The share price of Helios and Matheson is on the decline. Last week, the movie pass Service was even at all, because the company was insolvent. What is missing is a well thought-out business model. Of the many win users movie pass has first of all nothing. On the contrary, With each new movie pass users, the company is making losses.

Flat rate for the cinema movie pass has made this possible

While the subscribers can pay for you, free of charge, with a special credit card to across the country, over 90 percent of the box office, pay movie pass to the theater operators in General, the full ticket. In order to keep these losses as low as possible, speculated the company that the users would make with the time, rarely, from your movie pass to use. “I don’t believe in this strategy,” says Ross Gerber, founder of the consulting firm Gerber Kawasaki. “If people have no desire more, simply cancel your free membership,” he says. Unlike, for example, in the case of a membership in the Fitness Studio, you have less inhibitions.

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Data as a source of revenue

Movie pass is from those losses, however, don’t be afraid. It ostensibly also not to earn money with the subscriptions. It was in the first line, an analysis company, said the movie pass. So the idea is to eventually make money with the data collected at each visit to the cinema by many users. Movie pass CEO Mitch Lowe says, you know “everything” about the customer.

Analysts are however sceptical as to whether movie studios would be willing to spend for this data not really that much money. “Facebook and Google know everything about each of us. There is nothing in the data that could be collect movie pass, which would be better,” says industry expert Gerber. Add to that the business with the data of experience in accordance with the risks – if the data is to be used without the consent of the customer and sold.

Many movie pass users don’t know that you can pay for your cheap Film-Flatrate with your data. “I think the movie pass is so cheap, because the contracts with the theaters, and this is sort of advertising for the cinema,” an ignorant movie-pass-user in New York.

A new beginning or the end?

The fact that the movie pass is trying to collect user data, has provoked criticism and negative headlines. The company was then forced to promise not to data resell. Now, movie pass, frantically looking for other sources of income. The Experiments range from our own film productions, T-Shirts and mugs to extra fees for specific movies and times.

Screenshot of the Online page of the movie pass – in the meantime, the Flat-Rate is restricted to three visits to the cinema in a month

Recently movie pass announced to increase the monthly fee to just $ 15. This idea was quickly taken back and a new regulation replaced. Starting next month, movie pass will be allowed to users with your subscription to just three films per month. Any more will cost extra. “If the movie pass would have its own cinema chain, would make the business model more meaningful,” says Analyst Gerber. Then the company would have what of the many movie-goers and could earn money with Popcorn, food, or Parking.

But it may be too late, because the competition has already reacted. At the end of June, the largest cinema chain, announced in the country, AMC, a private Can – at the movies in 3D, 4D and IMAX. Unlike movie pass cinemas themselves are able to negotiate with such Offers directly with the production studios low prices.

After all, as experts have movie pass to shake the industry up. “Movie pass has shown that people would again go to the cinema, if the price is right,” says Gerber. In his opinion the movie pass have shown the large cinema chains that you need to be with your pricing creatively to make a Comeback to the movie screen. Whether it is a perfect Movie then, if that happens, however, is questionable.