MoviePass has managed to rack up 1 million active subscribers. And this has all been achieved in just four months, which is less time than it took Spotify, Hulu, and Netflix to reach 1 million subscribers. The question now is whether MoviePass’ business model is sustainable or not.
A Brief History of MoviePass
For the uninitiated, MoviePass offers subscribers the chance to see one film a day in a theater of their choosing for just $9.95-per-month. That affords you the opportunity to see up to 31 films for the price of just one standard ticket. Which is as insane an idea as it sounds.
MoviePass started out offering a tiered pricing model ranging between $15- and $50-per-month. And then in August 2017 MoviePass lost the plot and decided to switch to a flat rate of $9.95-per-month. This secured MoviePass a lot of coverage, some cynicism, and a dose of controversy.
The coverage came from sites like us, keen to clue their readers in. The cynicism came from potential subscribers keen to find the catch before it was too late. And the controversy came from theater chains such as AMC which think this is unsustainable and therefore potentially damaging.
1 Million Subscribers and Counting
MoviePass has now managed to secure more than 1 million subscribers. All of whom are paying $9.95-per-month to see as many movies as they want (with caveats). MoviePass is almost certainly losing a lot of money, but the company is still pleased to have passed this milestone.
— MoviePass (@MoviePass) December 20, 2017
In the celebratory press release announcing the service had surpassed 1 million active users, MoviePass CEO Mitch Lowe said, “We are excited and proud to have reached the one millionth subscriber level in such a short time while still early in the consumer adoption curve.”
Meanwhile, Helios and Matheson Analytics (of which MoviePass is a subsidiary) CEO Ted Farnsworth said, “We know this is what it will take for people to enjoy the experience of movies again and we’re thrilled that movie-goers are embracing a new and exciting era for cinema.”
A Cause for Celebration or Concern?
MoviePass has certainly proven to be a game-changer by lowering prices to such a degree that it’s an absolute bargain. The problem is where does MoviePass go from here? An increasing userbase is cause for celebration, but losing money on everyone who signs up is surely cause for concern.
Are you a MoviePass subscriber? How have you found the service so far? And how many movies do you see in an average month? Is this the first you have heard of MoviePass? Do you think its business model is sustainable? If so, how? Please let us know in the comments below!