MoviePass is a concept that has the potential to be a real game-changer in Hollywood, for better or worse. The service already has well over 1 million users who are enjoying unlimited films for less than $10 a month. That’s quite a deal, considering the average ticket costs around the same number of dollars.
The way the system works, MoviePass pays full retail price for the ticket, then passes the ticket off to the consumer. The studio and theater get their same cut of the ticket, and audiences (hopefully) increase in size, probably spending much more money at concessions, and let’s be real, that’s where theaters get most of their money, anyway.
So, everyone’s a winner, right? Not quite. Some theaters, like AMC and Cinemark have expressed their displeasure with MoviePass. The former spoke out against it, saying that it devalues the cost of movies, and the latter has even launched their own (read: worse) MoviePass-like service. But what’s the real reason behind the hate?
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Speaking with Recode, MoviePass CEO Mitch Lowe gave his own thoughts on the matter, saying:
“If you think back when Orbitz and Travelocity, Expedia were founded, the airlines and the hotels wished they didn’t exist. They want that one-to-one relationship with customers. That’s exactly the way the big theaters look at us. They go, ‘Geez, we want that one-to-one relationship. We don’t want a middleman.'”
I can definitely see his point here. While I’d like to believe the idea of theaters thinking the system undervalues movies, I think it may be truer that they don’t like the idea of their customers going through another service. It puts them in a complacent position, and makes them lesser masters of their own fates, which is never good for any business.
What do you think theaters hate about MoviePass? Let us know down below!
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