Declining theater traffic doesn’t scare MoviePass.
CEO Mitch Lowe joined Cheddar to discuss why his company’s subscription-based model can bring more moviegoers to the seats.
“Millions of people who’ve grown up with subscriptions love this whole idea of paying one flat-fee and then being able to go when they want, to see whatever they want,” said Lowe, who is also a co-founder of Netflix.
“People really do want to go to the movies more often, and especially young people. What they’ve really been looking for is better way to do it.”
The rise of Netflix and other video-streaming services has led to a drastic decline in movie theater attendance, with the number of tickets sold expected to hit a 22-year low in 2017. According to a survey by research firm Statista, almost a third of respondents say they go out to see a film less than once a year.
But Lowe hopes MoviePass can get people to go out more frequently.
“The people that our price point is attractive to are the people who only spent $40, $50 last year going to the movies, People who went only four or five times,” he said. “When they joined MoviePass now they’re going ten times a year.”.
MoviePass, majority owned by Helios and Matheson, last week announced it hit 1 million subscribers, only 4 months after cutting its monthly fee to under $10 a month.
For full interview click here.