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MoviePass’ resurrection will face old problems and new rivals

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MoviePass is seeking a Hollywood revival. It was a movie ticketing service that rose to fame in 2017, but then went bankrupt two years later.

Stacy Spikes was the cofounder of the company and he regained control on Wednesday. A bankruptcy court judge from the Southern District of New York had approved Monday’s sale. Spikes indicated that they are exploring the possibility to relaunch the company in the very near future.

Since MoviePass went out of service, the theatre industry has seen dramatic changes. MoviePass was shut down by a global pandemic that decimated cinemas around the world and blocked the production lines, resulting in lower-than-average box-office gains while the industry tried to recover.

MoviePass is trying to revive the chain, at a moment when other movie theatre chains have created their own loyalty programs that include tickets subscriptions and discounts.

It would have to be able to adapt to a changing industry and compete with rewards programs, as well as create a business model that is sustainable. unable to achieve before shuttering in 2019.

Jeff Bock from Exhibitor Relations, senior analyst said that AMC A-List rose out of the ashes Movie Pass and is now essential for moviegoers. Given the number of issues MoviePass card holders had to face, it will be hard for current subscribers not to sign up.

He said, “I don’t think it won’t work but potential subscribers will be very wary of the sequel.” It could help box office. Certainly. If the company wants to be sustainable long-term, they should create a more robust business plan.

MoviePass, which was founded in 2011, was purchased by Helios in 2017 and Matheson Analytics. The service initially provided one movie voucher per customer for between $30 and $40 per month. It then moved up to $10 per month. In the hope that the majority of subscribers wouldn’t use it regularly, the service was made affordable by no-show subscribers.

MoviePass’s subscribers began using the service more often than they had signed up for in 2017 and it started losing money fast. MoviePass made a new change to its subscription to reduce the number of films that could be viewed per month. It also stopped allowing subscribers to watch the same movie twice.

In April 2019, the subscription had 225,000 members, up from more than 3,000,000 in March 2018. MoviePass was forced to dissolve in September 2019 without the support of theaters. They had reacted negatively to MoviePass’ intrusion into the movie industry and business model.

Eric Handler from MKM Partners, media and entertainment analyst said, “It has been proven that this model of losing money for every transaction, and trying to make up with it by volume, 100% doesn’t work.”

AMC launched its A-List program in the summer of 2018, offering audiences up to three movies per week in any format — IMAC, Dolby Cinema or RealD 3D — as well as free upgrades on popcorn and soda, free refills on large popcorn, and no online ticketing fees. Users can also earn points which they can use to redeem money for future purchases.

This service can be purchased for $20-$25 depending on your location in the U.S. AMC stated that around two thirds of its subscribers were reactivated in July.

Rival CinemarkMovie Club is its loyalty program. Users get one movie ticket free per month. There are also 20% concessions. No online fees. The service was launched December 2017 and costs $9.99 per Month. Unused movie tickets can be rolled over to the following month.

A platinum version was recently introduced by the Movie Club. This is for those who have visited 25 times and/or purchased 60 tickets within a year. The main benefit is 25% discount on concessions.

By mid-2019 Cinemark’s Movie Club had more than 500,000 users. The company stated that it saw only a 6% drop in members after the program was activated again in 2021. This is largely due to expired credit cards.

It also stated that 64% percent of Movie Club members are interested in reaching platinum status. The company also launched an innovative online service to order food or beverages that guests can pick up at their convenience, rather than waiting in lines.

Regal, the last major theater to offer this type of movie theatre subscription, launched it in the middle of 2019, just as Movie Pass was ending.

Regal Unlimited lets customers watch any movie they like, whenever they wish. The three-tiered system offers a discount of 10% on all nonalcoholic beverages and free large popcorn on birthdays. There is no blackout day for making movie reservations.

One of the main differences among the three levels is how many theaters the user can choose from when they select their movie. You can access the lowest tier at 200 theatres. The middle tier has 400 theaters. And the top tier allows you to see 550 theaters across the U.S.

Handler explained that MoviePass is unable to offer A-List’s and Movie Club’s concession benefits. “Providing an independent service will not work, unless smaller circuits offer some kind of white label service.”

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