Uh-oh. I worried this was too good to be true. Last year, MoviePass introduced the ridiculously great deal of $9.95 to see a movie a day every day of the month. All of a sudden, going to the movies seemed a hell of a lot more affordable than ever before, and I’d hoped this would lead to theaters seeing increased concessions and studios selling more tickets.
But is it a sustainable business model? That’s the eternal question. And if it’s not, will consumers get a skewed perception of the value of a movie were this service to go out of business? I feel like we’re starting to see the chinks in the armor of this service. MoviePass has been experimenting a lot with pricing, dropping it to $6.95 a month for a hot second, pairing a weird subscription with a music subscription, and now it sounds like starting in July, they’ll be experimenting with surge pricing.
So what do I mean? The actual term being used by MoviePass CEO is “high demand” pricing. They will charge an additional $2 for films that are very popular with subscribers of the service.
“At certain times for certain films — on opening weekend — there could be an additional charge for films,” Lowe told Business Insider.
RELATED – AMC To Launch MoviePass-Like Service
So yeah, those Marvel movies? If you want to see them in the opening weekend, you may have to foot the bill for a few more bucks. The philosophy behind this is that Lowe wants to bring in more MoviePass subscribers to theaters during the week, rather than just all bunched up during the weekend.
But will this actually work, or will it only drive away consumers to competing services, like the recently-announced AMC alternative?
One plus side to this is that it would allow users to pay an extra $2 to $6 to upgrade to IMAX or Real 3D movies (right now, you’re only allowed to get standard 2D tickets).
A final note is that if you have an annual subscription, YOU WILL NOT BE SUBJECT TO “HIGH DEMAND” PRICING. This will only apply to those paying month-to-month.
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SOURCE: Business Insider