MoviePass has been making a buzz lately. Since the company lowered its subscription fee last August, they’ve gained over a million subscribers.

So, you’re not hip to MovePass yet, well it’s a subscription service for movie theaters. Think Netflix for TV, and Spotify or Pandora for streaming music. But at their new price point, $9.95 a month, the service is blowing up.

For $9.95 per month, a subscriber is allowed to one movie ticket a day at over 90% of movie theaters in the United States. The only restrictions that have been announced so far are that 3D and Imax films are off limits. In addition, the tickets are only for same day viewing, not advance purchases.

African American entrepreneurs, Stacy Spikes and Hamet Watt are the brands behind the company that began in 2011. It had a pretty slow start, with lot of initial resistance from movie theaters, but after a successful pilot with AMC, they made a few adjustments, but still didn’t jump off a quick as the duo would have hoped.

In June 2016, they brought on board Mitch Lowe as Chief Executive Officer, a position previously held by Spikes. Spikes and Watt now both serve as co-chairmans of the board.

Lowe, who also joined the company board of directors, had been an advisor to the owners for the past 2 years, and recently made an investment in the company. Lowe was charged with accelerating the growth of the company at a time when movie attendance among millennials is down.

He’s succeeded. In fact, in a span of over 2 months since they drop prices from $50 to $9.95 in August, the service saw the number of their subscribers leap from 20,000 to 600,000. They hit 1 million subscribers in December, that’s faster than Spotify, Hulu, or Netflix. Currently, they have over 2 million subscribers and expect to double it by the end of this year.

Now, it appears that the service has already made an increase in moviehouse attendance even in non-blockbuster films and also brought in the coveted millennial demographic as well those who do not usually go to movies.

“Based on the dramatic increase in the number of MoviePass subscribers over such a short period of time, we believe MoviePass will continue to grow its subscriber base significantly,” Lowe said.

Lowe isn’t the only one who believes in the MoviePass Model. Helios and Matheson Analytics – a publicly traded company, recently purchased a majority stake in MovePass.

“This is about getting funded in order to launch our new price point,” Lowe told Variety. “After years of studying and analysis we found that people want to go to the movies more often, but the pricing keeps going up, and that prevents them from going more. We’re making it more affordable for people.”

Leave a comment

Your email address will not be published. Required fields are marked *