MoviePass has announced that it now has more than 1 million paying users. The company has seen a lot of success with its price drop this summer from a tiered model of $15 to $50 per month to a flat fee of $9.95 per month.
After the price change, the company was up to 150,000 subscribers. Clearly the price change made a big difference because the company only had 20,000 subscribers a few months earlier. Last month, the company announced an even cheaper option where you pay for a one-year's subscription upfront in full, which amounts to $7 per month. This is of course a lot cheaper than the $9.95 per month plan that was previously announced.
MoviePass has seen a lot of success in short months, but both threaten chains and subscribers remain suspicious of its business mode. The company is subsidizing the cost of each ticket that users buy, at a maximum of one ticket per user per day. This is a strong indication that the company is most definitely losing money. CEO Mitch Lowe has said that the company hopes to offset the cost of city users by growing its subscriber base to more rural areas. The company also hopes that the data it collects from users will prove to be valuable to studios.
The bigger concern that theater chains have is MoviePass will devalue the cost of movie tickets because users will be paying little for a comfortable movie experience.