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What happens when the former President of Redbox and co-founder of Netflix joins a failing company? A revamped strategy and methodology to gaining customers, that’s what.
What Is MoviePass?
For those of you who don’t know what MoviePass is – it’s a subscription service, much like Spotify, giving you access to attend 1 movie per day without paying an additional fee on top of your subscription price. Sounds awesome, right?
How Much Does It Cost?
MoviePass has been around since 2011. When it originally came out, the service cost $30/month for the same 1 movie per day. Now that MoviePass is under new management, the price has reduced significantly. As of last week, the new price is $10/month.
Back in 2011, I was tempted sign-up for the service. After running some numbers, I didn’t think I would save any money given the frequency I see movies. As of today, however, with the increase in the price of movies, the increased number of movies I see and the decrease in subscription price, it’s creating the perfect storm that makes this service well worth it.
I generally see movies at the least expensive movie theatre in Dallas. It’s $6.5 per movie. So, if I see 2 or more movies, then it’s worth it. The only thing about this movie theatre is that it’s further away than some of my other options. With this service, I’ll be able to attend the closer theatres without changing my personal costs.
What’s Their Strategy?
When I heard about this deal, I was confused. How can a company throw away money like that? Well, they aren’t exactly doing that. Sure – they are selling their produce at a below market rate. But, they are doing that to gain a customer base. Obviously, the company wasn’t doing well or else they wouldn’t have brought on a new executive. In addition to the subscription cost, they are also selling their data to companies willing to pay for it. They’ll be collecting information about its consumers to help movie-related companies get a better understanding of consumer wants, needs and trends. Between the two of those, I guess they’ll generate income? Or at least create generate enough income to offset costs for a period of time before they increase the price?
I guess we will see.
With the decrease in costs, the increase in the number of movies I see and the increase in movie costs, I think this is a no brainer. There’s no contract you must sign. There’s just a monthly fee that can be canceled at any time and a near unlimited number of movies to see. I’m going to try it out.
Stay tuned for my experiences.
-My Strategic Dollar