MoviePass is trying to lure more customers its way, offering a limited-time, one-year subscription plan that amounts to $7.50 a month or a flat fee of $89.95 for the year.
According to a news report in Deadline, the monthly price tag for the new offer is less than the average cost of a movie ticket, which stood at $8.93 as of the third quarter, citing the National Association of Theatre Owners. If MoviePass customers opt to subscribe to the new one-year subscription plan, they will get a 25 percent savings from their current plan, in which they pay $9.95 each month.
While critics are decrying MoviePass’ pricing, contending the company will lose money, Deadline reported that it is offsetting losses through sales of marketing data gleaned from its subscribers. AMC Theaters tried to offer their version of a monthly ticket pricing plan, but the major movie studios weren’t receptive.
In the summer, MoviePass announced a $9.95 monthly plan that enables customers to go to movie theaters as many times as they want. Since then, the company has gained 600,000 new customers.
“This limited-time offer is great for movie-lovers. At $6.95 per month, it’s hard to compare it to anything else that provides as much entertainment for a full year,” said Mitch Lowe, CEO of MoviePass. “We are entering the prime movie-going season, so now is the perfect time to take advantage of the MoviePass movement.” Deadline noted that last week, Lowe told CNBC that MoviePass was investigating the idea of launching a streaming digital content service.
MoviePass is majority-owned by Helios and Matheson Analytics, which told Deadline it is the biggest supporter of the company. “We look forward to helping MoviePass continue to broaden its reach and modernize the movie theater industry,” said Ted Farnsworth, chairman and CEO of HMNY.