It’s hard to know which side to take when discussing the MoviePass vs. AMC theaters debate. In truth it’s not something that really bothers people that don’t go to theaters that often, but it’s very easy to compare this current struggle to that of the old movie stores vs. the Redbox and Netflix. In other words, MoviePass is attempting to start up a bargain deal that would allow moviegoers to purchase a subscription that would allow them to go see a movie a day for less than $10 per month. That sounds like the bargain of a lifetime, right? The only problem in this case is that AMC theater’s are staunchly opposed to it. In fact they’re currently looking for some way to deny MoviePass any leeway into their business.
So what’s the big deal?
Many people would probably jump on this deal, until they realized that there aren’t enough movies out there in the theaters to really cover a full month. Even those theaters that show older and more classic films aren’t switching reels all that often to cater to the customers. In some ways MoviePass is great, it allows you to go to the movies all month for a minimum price. But then think of how that’s hurting the businesses that allow this.
Ticket sales represent a big part of the profits that movie theaters need to keep up their operations. Concessions make a good deal of money too, but the price of a ticket has gone up to reflect that amount of upkeep that is needed to maintain a professional and working theater. With the new technology coming in and the always constant need to maintain and sometimes upgrade a theater for a better viewing experience it’s become more expensive to go see a movie on a regular basis. If you were to go see one movie per day by yourself for a single month it would cost upwards of two to three hundred dollars without snacks. That’s ticket prices alone.
With MoviePass it wouldn’t even be a fraction of that. But once again, without that incoming profit the movie theaters would take a huge hit and would likely have to downsize in order to make things work. This means less showings, less theaters, less of pretty much everything. In a very short time it might mean going back to the days when it was just a single show in a single theater with nothing more than popcorn and a few other treats to enjoy during the movie. Plus the grandiose theater experience would resort back to the uncomfortable stadium seating that can barely hold a child and is bearable for only an hour or so.
MoviePass insists that the service would up the sales at many theaters and encourage people to visit the theater far more often. The only trouble with that is the fact that going to the theater is a special occasion for many people and doesn’t happen as often as one would like to think.
MoviePass might be the new Redbox or Netflix, but they need to rethink their action plan a bit.
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