June Changes
In late June, we reported that MoviePass had included an option for you to bring a friend along with you. What’s interesting about this is that you would still have to pay the full price of the ticket. It was just allowing you and your friend to be able to sit together. Rather than each person having to buy their ticket and not getting to sit together. While I think this is an ok feature, it doesn’t really do anything to enhance their model.In June, MoviePass also introduced Peak Pricing. Which means – for some showtimes where there is a high demand, you will have to pay more. Basically, MoviePass is trying to get you to go to the movies on days when other people aren’t. Which makes the ticket cheaper. And thus, giving MoviePass a break because they don’t have to pay extra for the ticket.Another interesting upgrade option is around 3D movies. No matter what plan you’re on, you will still have the option of seeing RealD 3D, 2D IMAX, 3D and other Premium Large Format movies by paying an upgrade fee.
AMC
But here’s what really might be killing MoviePass – AMC announced Stubs A-List, in an attempt to rival MoviePass. Their service allows moviegoers the ability to see up to three movies a week for a flat rate of $19.95/month. Which, is much more manageable. Not only that, but AMC doesn’t necessarily have to reimburse anyone for the ticket. MoviePass is a third party company, who was making deals with the movie theaters themselves. MoviePass would have to pay the cost of the ticket so being able to go to one movie a day, could cost MoviePass $300/person/month – or more. If AMC is offering the service, they don’t have to negotiate with the theaters themselves, and likely don’t have to worry about reimbursing. I’d also argue that by limiting the number of movies you can watch, people are going to be more deliberate about their choices. And – if you see more than 2 movies per month, then your membership isn’t costing you any more.