Can MoviePass’s Move to Slash Prices Make It a Netflix for the Multiplex?

In a bold move aimed at changing the scale of its business, MoviePass took a Netflix-inspired step on Tuesday, slashing its monthly subscription fee from as much as $45 to $9.95 a month in conjunction with a new investment from analytics firm Helios and Matheson.

[...] even if other exhibitors embrace MoviePass, should theater chains be concerned about what looks like a Groupon-ization of their product?

[...] our goal is to build our subscriber base into a meaningful number and then start to drive our subscribers to those theaters that work with us and drive up their concession stands.

Another thing that might help MoviePass make its case to exhibitors: a lot of the incremental movies its subscribers are seeing (Lowe said they’ve doubled their moviegoing on average) are smaller films, not the big-budget blockbusters that dictate the ebb and flow of the box office — and theater stock prices.

While IMAX and 3D movies aren’t included in the $9.95 offering, MoviePass has designs on introducing a higher-priced tier that would offer subscribers access to those premium formats.

“We hope to roll out a subscription package that includes 3D and IMAX at some point in the future, but right now it does not cover IMAX, 3D, or some of the high priced luxury theaters,” Lowe said.

Some theaters like Studio Movie Grill, which is a luxury chain with food and assigned seating, make their money on concession and not on the ticket pricing, so we include those in our pass.

[...] last year, consumers spent more money on subscription services like Netflix than movie tickets.