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posted on 03 February 2018

Movie Theater Subscriptions


-- this post authored by Felix Richter

Just weeks after having surpassed the million subscriber mark, the U.S. movie theater subscription service MoviePass announced another milestone last week.

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The latest announcement comes on the heels of an impressive five months, which saw MoviePass’ subscriber base skyrocket from just 20,000 paying customers in August 2017 to more than a million in December. The reason for this steep ascent is rather simple: MoviePass slashed the price of its movie flatrate from nearly $50 to $9.95 after selling a majority stake to the data company Helios and Matheson Analytics (HMNY) in August.

But how does MoviePass’ business model even work? Considering that just one movie ticket costs nearly as much as its monthly subscription fee, the company appears to be setting itself up to lose a lot of money. That’s where its new majority owner comes into play.

After all HMNY is a big data company. According to a Bloomberg article published after the takeover in August, the goal is not to earn money selling subscriptions, but to build a large customer base in order to collect data on viewing behavior. “It’s no different than Facebook or Google," HMNY CEO Ted Farnsworth said. “The more we understand our fans, the more we can target them."

Infographic: Is MoviePass Ringing in a New Era for Movie Theaters? | Statista You will find more statistics at Statista.

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