Over a year after MoviePass failed to launch its all-you-can-view subscription movie service, the company is back with a retooled offering that has a much better shot at surviving the inevitable pushback by cinema chains and studios.
You might recall last June MoviePass announced a private beta with 21 theatres in San Francisco that would allow subscribers paying USD $50 per month to watch an unlimited number of films in cinemas. In effect, the idea was to bring the Netflix business model to movie theatres. The companies plans were shelved however when theatre chains such as AMC and Landmark said they had no intention of working with MoviePass.
By July 2011 MoviePass had teamed up with Hollywood Movie Money to offer its members a similar service, provided they dealt with the inconvenience of printing vouchers at home which could then be redeemed at cinemas. Theatres would in turn be paid for each ticket, in-full, with MoviePass swallowing any price difference. At best, this was a cumbersome process which did not seam ideal for wide adoption.
MoviePass has since parted ways with Hollywood Movie Money, dumped its voucher scheme and earlier this week made public its latest unlimited viewing subscription model. This time, MoviePass may have come up with a system that cinema owners and studios won’t balk at and its customers will find more attractive.
Now, members pay between USD $19.99 and USD $34.99 per month and can watch up to one movie in theatres per day. The subscription price is determined on where a member lives. MoviePass has created three zones; those living in areas where ticket prices average less than USD $10 will pay USD $19.99 per month, whereas in high density markets such as New York or Los Angeles, where ticket prices average USD $14, members will pay at the USD $34.99 level.
Rather than having to print out a voucher beforehand, subscribers can use an iPhone app to log into any theatre throughout the United States, select a movie and showtime and then use a special MoviePass debit card to pay for a ticket. The process has two main caveats in that subscribers must be within 100 yards of the theatre when logging in (which activates the debit card) and the theatre must accept credit cards. Cinemas will get paid the going rate for
The new MoviePass service does come with a few restrictions. For instance, 3D and Imax films are not included as part of the monthly plan. As well, one can’t just subscribe to peak moviegoing months such as summer or the year-end holiday season.