MoviePass - Is It Worth It

MoviePass – Is It Worth It?

My Strategic Dollar M$D Wisdom, Product Review 9 Comments

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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.

Is MoviePass Worth The money

Conclusion

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

Comments 9

  1. I’d be curious to see what your experiences are with it. Seems like a cool concept and potentially a money-saver but it seems like an odd business model to me.

    But I guess new business models are sometimes the right moves 🙂

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      Author

      I plan on writing an update post down the line to detail my experiences. You’d be surprised how many new companies lose money on their product, but sell data and make it up.

  2. When I lived in England there was something like this for subscribers of the mobile phone network ‘Orange’. I think it was one free movie per week.

    Seems like it can garner a lot of movie going subscribers at just $10 a month. Not for me though, I have a 2-year old and a 5-month old. No movie theaters for me for quite some time!

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      Author

      AT&T has a rewards program for their customers as well. On Tuesday’s it 2 movies for the price of 1 which is pretty nice.

      Hopefully, your ability to go to the movies increases soon!

  3. Interesting — I didn’t know such a service existed. It doesn’t make much sense for me now with young kids, but I could totally see us doing this if we were at a different stage in life.

    Cheers!
    -PoF

  4. MSD –

    It’s an interesting ploy to gain customers and bring consumers to the theaters. It makes sense for extreme movie goers, but $120/year when I see maybe 1 or 2 if that per year, isn’t worth it for me. However, this can be similar to a Netflix deal, where pricing may increase after the base is stabilized and in 3-5 years, could turn to $12.99 or $14.99 per month. Of course, they’ll have reasons why they can do this and why consumers should stick with it, as by that time – one movie theater ticket could cost around that same amount by then : /

    Nice share here MSD, very interesting.

    -Lanny

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      Author

      Definitely! I figure it’ll be worth it s long as it’s cheaper than seeing 4 movies per month because that’s the absolute minimum number of movies I see.

  5. How do I not already know about this? It sounds awesome! Unfortunately though its not for me because there would be no way I could ever go to the movies that often to make it worth my time. But I’m sure for some people, $10 is a steal!

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