How Does MoviePass Work? The Reason Why This Subscription Feels Too Good To Be True

Movie Pass Monthly Movie Theater Subscription
Buzz

That will be $9.95 a month, please. No, not even joking.

In a world of endless monthly subscriptions, Americans are constantly signing up for online and mobile subscriptions in order to make their life easier or become a part of something exclusive, and the new version of MoviePass is no different.

This leaves companies no choice but to figure out how they can become a part of it all —and, that includes movie theaters.

With nearly millions of popular movies and TV shows being at America’s disposal, Movie Theater sales are rapidly declining, forcing them to rethink the way to sell to the consumer. 

Netflix co-founder Mitch Lowe knew the rising potential movie theaters still possessed when he took over the ticketing firm MoviePass in early Summer of 2016. 


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MoviePass is a rising American movie ticketing service, and the latest millennial obsession. 

Founded by Stacy Spikes and Hamet Watt in New York of 2011, the company is already at a subscriber count of over one million as of late December.

With the next movie for the month at your fingertips, MoviePass is taking customers and the subscription world by storm. So how does MoviePass work?


Step 1: Sign Up and Pay the Fee

MoviePass initially started off charging nearly $50 per month in 2011 when it initially started. Seeing that that did not take off as planned, they lowered the pricing to $35. From then, the pricing continued to lower until reaching a steady price of $10. Their strategy as brought more customers back to the movies.


Step 2: Get a Card

One of the first thing the MoviePass App will do is prompt you to sign up for their debit card. This is a prepaid card which is later used to purchase the ticket from the cinema the way it normally would be purchased.​ MoviePass will then load your new debit card with the exact money the movie theater you will be attending will ask you for, making it virtually impossible for the theater to refuse this method. 


Step 3: Choose Your Movie and Enjoy!

Once you are within 100 yards of the theater, you have the opportunity to now select the movie. Enjoy the endless array of movies to choose from all month, for a total of $9.95 a month.


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There is no doubt that all of MoviePass' promises are grabbing consumers' attention. However there is a question that remains: how can MoviePass afford to be so cheap?

Movie Theaters have been on the decline for the last few years, especially on the younger generation. In August alone, AMC had a loss of 26% in value as mentioned on Gizmodo.

Lowe's ability to receive funding from other companies, the pricing of the subscription was able to remain low. Because consumers favor low prices , the company has been able to get traction. As a result, many movie theater companies have jumped on board to MoviePass. 


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According to a post from Bloomberg Inc., movie theater companies are in a rush to take consumers off of their couches and back into theaters. MoviePass has been a bit of help to this dilemma at hand.

On the consumer’s end, MoviePass is one the most ideal subscriptions on the market, yet for large movie theater companies such as AMC Entertainment, it is infuriating.

According to the New York Times, chief executive of AMC Adam Aron, said that AMC “appreciates [MoviePass] business” but has “no intention of sharing any of [AMC’s] admissions revenue or our concessions revenue”.

While the concept is fully there, MoviePass does hold its flaws for consumers as well.

MoviePass will only works per cellphone. This means that if a family wants to see a film together they must all have a cell phone; and of their child does not have a phone, they must ay regular price.

As MoviePass expands, the public's concerns should only become smaller. A company that once started off rocky, now ahead of the curve.

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