How MoviePass is Reinventing Theater Experience Through Subscription Model

The holidays are one of the busiest times of the year at movie theaters. Now, more people are buying their tickets through subscription service MoviePass. The service usually costs $9.95 per month, but became available for a limited time for under $7 per month. The deal had many wondering how the business model could be sustainable. Helios and Matheson Analytics Chairman and CEO Ted Farnsworth, the majority owner of MoviePass, says the service became "inundated" after the limited-time deal became available. Farnsworth says the company's business model remains sustainable because of its ability to sell the data it collects. MoviePass is currently doing deals with Hollywood studios that want to better understand consumer data at the movies. "That's really where you make your money," says Farnsworth. In November, Helios and Matheson Analytics announced it secured $100 million in a convertible debt commitment from institutional investors to fund MoviePass. The service is now available at 90 percent of theaters across the nation. For example, MoviePass sales of Lady Bird contributed to 5.2 percent of all ticket sales on opening weekend. Some 75 percent of MoviePass users are millennials, which Farnsworth considers one of the company's biggest differentiators.
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