$9.95/ month MoviePass
- Thread starter cowboyclint25
- Start date
I'm trying to figure that out as well. From what I've gathered, they basically send you a "debit" card, you pay the theater with the card and the theater actually receives the full price for each movie you see.
The articles I've read said that the advertising revenue the site generates would provide the 'difference' and the profit margin. I'm having a hard time with the math making sense to me on that end.
My understanding is that not every theater will be participating. So, you would be limited as to locations, near you, that would take the pass.
Been,
Apparently, theaters who otherwise accept Mastercard (credit or debit cards) CANNOT refuse to accept the Movie Pass debit card for payment, as it would be a violation of terms of their Mastercard agreements.
Apparently, AMC was talking about trying to block it, but if they did so, it would mean that they would lose the right to accept Mastercard at all of their locations and that would probably be a nightmare for them and result in lawsuits.
I don't understand what the problem is for the theaters, the get paid FULL PRICE for every movie ticket. With attendance dropping at theaters, one would think that anything that brought more paying customers in the door would be a good thing. Especially when concessions typically provides more revenue/profits than tickets and you get $0 in concession revenue for every person who is not in the complex. If they're charging $8/ticket what does it matter to them if the person buying is paying cash, a "regular" debit/credit card, or a moviepass debit card? They're still collecting the same amount of money. I'm really confused by the response of some in the movie theater industry.
For the average person, being able to see a movie a day for $10 total, even if you only go to 4 movies a month, it's a hell of a deal. And for the theaters, they're getting the same amount of money per ticket, when they most likely would otherwise be getting nothing in most instances.
Apparently, theaters who otherwise accept Mastercard (credit or debit cards) CANNOT refuse to accept the Movie Pass debit card for payment, as it would be a violation of terms of their Mastercard agreements.
Apparently, AMC was talking about trying to block it, but if they did so, it would mean that they would lose the right to accept Mastercard at all of their locations and that would probably be a nightmare for them and result in lawsuits.
I don't understand what the problem is for the theaters, the get paid FULL PRICE for every movie ticket. With attendance dropping at theaters, one would think that anything that brought more paying customers in the door would be a good thing. Especially when concessions typically provides more revenue/profits than tickets and you get $0 in concession revenue for every person who is not in the complex. If they're charging $8/ticket what does it matter to them if the person buying is paying cash, a "regular" debit/credit card, or a moviepass debit card? They're still collecting the same amount of money. I'm really confused by the response of some in the movie theater industry.
For the average person, being able to see a movie a day for $10 total, even if you only go to 4 movies a month, it's a hell of a deal. And for the theaters, they're getting the same amount of money per ticket, when they most likely would otherwise be getting nothing in most instances.
AMC is exploring every aspect to get out of this deal, they think it is a bad promotion and that their money will dry up and they will not get paid. Can't say I blame them it looks like a to good to be true deal and will be dead soon after its released.
It looks like it will arrive in September. At least the year doesn't start until the card arrives.
They exclude IMAX and specialty theaters. Wife and I love going to either the IMAX on 71st or the Directors Suite at the Warren in BA. Both of these are not included in the membership.
How will the money "dry up" and leave them (AMC) unpaid exactly? It's a debit card, the money is exchanged on an immediate basis. (Same as a cash purchase.)
The company has been around since 2011 and has been selling the movie pass for a number of years now, just at a $50/$60 monthly rate.
One thing they have going for them, in regards to theater support, is that the research is showing that people who use movie pass are likely to spend 125% more on concessions than those who pay normal ticket prices. In reality, theaters typically make more from concessions than from their share of ticket sales. The more butts in seats and the more those butts are buying sodas, popcorn and candy at ridiculously high profit margins, the more the theaters will make. I could really see AMC change their tune shortly.
But from a legal perspective, unless they're willing to deny purchases on Mastercard, they can not deny Movie Pass.
Is there any reason not to wait a month or two before going all in with this deal?
I'm sure they could bump the price back to the previous rate at any time.
I just don't see how many months I even would go to the movies twice in a month.
Once movie pass has a significant control on the market they will be able to dictate prices much like insurance companies do. They will end up saying that they'll pay 75-80% price and movie theaters will have to agree if they want to fill their theaters.
This will be a good thing for consumer if it works. I'm not sure moviepass will have to investors and financial girth to make this strategy work long term
Plus they'll also make money on unused movie passes that say use 8 times a year with 12months of revenue.
Most people don't have time or desire to go more than 2 movies in a month and usually there are months they won't go at a time
Also many times families will be duped into buying 4 passes. It only 2,3 get used on every family outing
This will be a good thing for consumer if it works. I'm not sure moviepass will have to investors and financial girth to make this strategy work long term
Plus they'll also make money on unused movie passes that say use 8 times a year with 12months of revenue.
Most people don't have time or desire to go more than 2 movies in a month and usually there are months they won't go at a time
Also many times families will be duped into buying 4 passes. It only 2,3 get used on every family outing
https://www.engadget.com/2017/08/16/amc-moviepass-opt-out-deal/
"MoviePass explained that it's funding the venture with the $27 million it's getting by selling a 51 percent stake to data firm Helios and Matheson Analytics. It knows that it will lose money from subsidizing tickets, but it's hoping that theaters and studios will eventually sell them at discounted rates once viewers pour in -- it aims to gain 80,000 new subscribers -- and concession sales go up."
Because their funding this with a stock sale in hopes that theaters will give them a good deal on tickets down the road. And if you have some visa or master card what happens if Movie pass can no longer pay off the payments for those tickets?
OSUIvan - "... if you have some visa or master card what happens if Movie pass can no longer pay off the payments for those tickets?"
It's a pre-loaded debit card, the most you stand to lose is the $10 you prepaid for the service monthly X the number of cards you have (assuming you bought a couple or so for family members.)
MoviePass loads in the purchase price so it will work when you buy your tickets online or at the venue, after you have "reserved" a ticket through their app. When you swipe your card at the kiosk or ticket window, just like any other debit card transaction, the payee receives their money immediately, just like a cash transaction.
It's a pre-loaded debit card, the most you stand to lose is the $10 you prepaid for the service monthly X the number of cards you have (assuming you bought a couple or so for family members.)
MoviePass loads in the purchase price so it will work when you buy your tickets online or at the venue, after you have "reserved" a ticket through their app. When you swipe your card at the kiosk or ticket window, just like any other debit card transaction, the payee receives their money immediately, just like a cash transaction.
For movie theaters, in general for the first two weeks a movie is in release, they only keep about 20% to 25% of the ticket price. In the third week, that number typically jumps to about 50%. (The rest going to the studios/distributor.)
But what the theaters do keep is 100% of the concession sales and their advertising sales. If the people using moviepass are in fact spending more than double the amount on concessions compared to non moviepass users, then the theaters are going to be making bank.
After all, how much profit margin is in a large soda that costs them about 30-40 cents for the portion of ice, syrup, carbonated water and the cup it comes in, when you're getting $5.10 for a small and $6.29 for a large? Or popcorn, which sells at AMC for between $6 to $9 and couldn't cost more than 50 cents to make (and that includes a refill). Toss in a box of candy that they are charging $4 to $5 and which costs them 30 - 40 cents wholesale and their profit margins are way, way higher for concessions than actually selling tickets.
But what the theaters do keep is 100% of the concession sales and their advertising sales. If the people using moviepass are in fact spending more than double the amount on concessions compared to non moviepass users, then the theaters are going to be making bank.
After all, how much profit margin is in a large soda that costs them about 30-40 cents for the portion of ice, syrup, carbonated water and the cup it comes in, when you're getting $5.10 for a small and $6.29 for a large? Or popcorn, which sells at AMC for between $6 to $9 and couldn't cost more than 50 cents to make (and that includes a refill). Toss in a box of candy that they are charging $4 to $5 and which costs them 30 - 40 cents wholesale and their profit margins are way, way higher for concessions than actually selling tickets.
