For those who are unfamiliar with the name, MoviePass is a movie ticket subscription service. In exchange for paying a small fixed fee on a periodic basis, its subscribers can get a single movie ticket on a daily basis. Considering that the fixed fee is $9.95 per month, this means an incredible discount compared to standard prices for the same, which explains why MoviePass saw such a huge increased in its subscriber base that its existing operations couldn’t keep up with the sheer number of interested individuals. Now, the movie ticket subscription service is planning to launch a new annual plan, which promises even more incredible savings for interested individuals.
What Is MoviePass’s New Annual Plan?
First and foremost, it is important to note that the new annual plan is a limited time offer, meaning that people who are interested but still unsure will have to make a final choice to sign up or not sooner rather than later. Said plan comes at a cost of $89.95, which is $6.95 per month plus $6.55 as a processing fee. Furthermore, it is interesting to note that the plan comes with a 25 percent discount for current subscribers, which should come as welcome news to those who are tempted by this even better price.
Overall, it seems probable that it will produce another significant boost to the number of MoviePass’s subscribers, though that boost might be reduced in size to some extent by the fact that the new annual plan will be the sole plan that is available for new subscribers for the time being. After all, while the potential for savings is incredible, there will still be those who are reluctant to pay $89.95 all at once, particularly since there are still some serious doubts about whether MovieGo can continue operating for the foreseeable future.
How Does MoviePass Plan to Become Profitable Anyways?
Simply put, it seems improbable that MoviePass is going to become profitable by just selling its movie ticket subscription service to interested individuals. This is because a single movie ticket can cost more than what it brings in from its subscribers in each month, which is not counting the other expenses that have to be paid to keep its operations running. The situation is not as bad as it seems on initial inspection because most people in the United States don’t even go to the movie theaters once a month, but at the same time, it should be noted that such a low price will send subscribers to the movie theaters more often than their counterparts.
As a result, it seems probable that MoviePass will be using its subscriber base to bring in revenue through some other basis. For example, some people have speculated that it plans to sell advertising space to businesses that are interested in reaching out to its subscriber base. In contrast, other people suspect that it might attempt to convince movie theaters to give it a share of their profits once it has built up sufficient influence. Whatever the case, MoviePass will need a way to become profitable at some point because without it, it cannot hope to operate into the foreseeable future.
With that said, it is interesting to note that MoviePass does seem to be making an effort to curb the biggest sources of loss for them. Recently, it made a change to its terms of use, which now allows it to limit the number of times that a subscriber can go to the movie theater in a month if they go past an unspecified number of visits. Something that interested individuals should keep in mind when choosing whether they want to subscribe or not.
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