MoviePass, a movie ticket reselling start-up, is making a name for itself as the next Netflix after announcing that the company would be launching a monthly subscription for movie theater tickets.
Few things are better than a quiet day at the movies, but not many people can actually afford to see every movie they want in theaters.
At more than $12 a pop in some areas, many people often find themselves making a choice between two movies they really want to see.
MoviePass, which is based in New York, has recently announced that it would be lowering its monthly subscription to $9.95 a month—similar to the price of other online streaming services, like Netflix.
Chief Executive Mitch Lowe, who is a former Netflix and Redbox executive, said in a statement earlier this week that the price change “completely disrupts the movie industry in the same way that Netflix and Redbox have done in years past.”
For many people around the country, especially those living in major cities like New York and Los Angeles, the monthly price of this subscription would cost less than a single movie ticket.
While this subscription may sound like an incredible deal for moviegoers, some theaters are completely rejecting MoviePass’ entire idea.
In a scathing release, AMC Theaters sharply criticized MoviePass’ subscription, calling the service a “small fringe player” whose plan is “not in the best interest of moviegoers, movie theaters and movie studios.”
AMC has even proclaimed that the service is “Not welcome here.”
“In AMC’s view, that price level is unsustainable and only sets up consumers for ultimate disappointment down the road if or when the product can no longer be fulfilled,” the Leawood, Kan., exhibitor said.
When MoviePass initially launched in 2011, it touted a $50 monthly plan, which exhibitors quickly insisted would devalue tickets. Later, the company lowered its price to $30 a month.
Although MoviePass will almost certainly lose money by offering this ultra-discounted monthly subscription, theaters like AMC are right to be scared this this could end up being a problem in the long run.
“It is not yet known how to turn lead into gold,” AMC said. “AMC … believes that promising essentially unlimited first-run movie content at a price below $10 per month over time will not provide sufficient revenue to operate quality theatres nor will it produce enough income to provide film makers with sufficient incentive to make great new movies.”
As for Lowe, he believes people will start seeing more movies in theaters once they can actually afford it.
“People really do want to go more often,” Lowe said. “They just don’t like the transaction.”
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