While Moviepass launched their business in 2011, it wasn’t until August 2017 that the subscription service became a nationwide sensation. During this time, Mitch Lowe, a former Netflix employee, was hired to run the company, which decided to switch things up, offering an unprecedented deal to their subscribers. For $10 a month, Moviepass customers would be able to watch one movie a day.
Ever since their big announcement, the conversation has revolved around the fact that the company’s Netflix-like business model isn’t sustainable when applied to movie theaters, and most people have been waiting for the other shoe to drop.
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In an interview with Business Insider, Lowe said that Moviepass would introduce several measures that’ll ensure the company’s survival, including the ability to watch IMAX and 3D movies, surge-pricing, and an option to bring a friend with you to the movies. Surge-pricing will be very similar to what Uber does on hours where people request a lot of cars. These “high demand” movies would add a $2 fee to the $9.95 base price of the subscription, which is still a pretty cheap deal.
No matter what happens to Moviepass, it seems like subscription services are the future of the movie theater business even though movie theater chains were very much against them just a year ago. Recently, AMC announced their own subscription service that includes up to three movies a week, and costs $20 a month.
Moviepass’ surge pricing will appear during the month of July, while the “bring a friend” option, and the ability to watch IMAX and 3D movies, will show up in August.
