In the past, we have written several articles showcasing an interesting premium service dubbed MoviePass which allows subscribers the ability to attend one 2D movie screening every day for just $9.95/month. The service has been around for a few years now, but their recent pricing revamp has resulted in 1.5M subscribers.
Considering the going rate for a single movie ticket throughout 2017 averages $8.97, this seems like a steal and a great way for movie theaters to bring people back into their locations versus streaming movies on digital platforms like Netflix, Amazon Prime or Vudu.
While many subscribers have praised the service for its offerings at an affordable price, many theaters themselves have complained about the business model not being sustainable including one of their biggest critics, AMC.
Since then MoviePass has tried to strike a deal with AMC to gain a portion of the revenue they drive to their theaters ($3/cut on AMC tickets) as well as 20% of all money spent on concessions from their subscribers.
AMC Executives struck back saying that the chain “has absolutely no intention, I repeat no intention of sharing any – I repeat, any, of our admissions revenue or our concessions revenue with MoviePass.”
While this sounds like a lofty request from MoviePass, the company has already scored this deal with nearly 1,000 smaller theaters around the country and last year MoviePass was responsible for 62% of their ticket sales in the last quarter which equates to $135M a year plus $68.4M in concessions from their customers.
In response, MoviePass has blocked access to some of the largest AMC theaters from their subscriptions including these popular theaters:
- Empire 25 (NYC)
- Century City 15 and Universal CityWalk 19 (LA)
- Loews Boston Common 19
- River East 21 (Chicago)
- Disney Springs at Walt Disney World
- Loews Alderwood Mall 16 (WA)
The decision to remove access to these theaters was sudden and caused some issues within their subscriber community as angered customers took to Twitter to voice their frustration.
About 12 people trying to use @MoviePass in the lobby of AMC empire 25 nyc and it claims we’re not 100yards from the theater. WTF
— Daniella Puitiza (@DaniellaPuitiza) January 25, 2018
Want to see all of the Disney Twitter community finally come together???
Great job Movie Pass!!!
— Expansion Drive Podcast (@AttractionsEXP) January 25, 2018
there's about 5 known AMCs total so far. they're all big money makers (or money losers to MP). This is not AMC's doing, this is MoviePass. if it were AMC, it would've been done 8 months ago.
— Online Magic Instructor (@stitchkingdom) January 25, 2018
AMC has confirmed that they have not been involved in the decision and told angered customers to contact MoviePass with any complaints or questions.