Current Events > How the fuck does MoviePass make money?

(+) Yeah! (+)

Also, why do AMC theaters have a problem with it? They should LOVE it.
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MP right now doesn't make money. It's goal to build up a big subscriber base.

AMC doesn't want it to continue because if MP grows and becomes a standard, Moviepass can eventually force movie theaters to except a lower fee per ticket sold, or even a flat fee. Moviepass if it takes off could seriously cut into theater chains profits.

AMC is leading the charge hoping other chains join them. So far that hasn't happened.

Twofold plan

1. Much like Uber, they plan to monopolize the market at heavy losses for a few years, creating a sizable userbase with low prices before jacking those up or using their userbase to negotiate prices.
2. Apparently they sell data about users habits and such to third parties, helping them to offset in part the losses of the movie transactions alone.
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How does MoviePass cut into theater profits though? MoviePass preloads what that theater charges for the ticket to the card, on the theater end isn't it just money like any other money coming their way?
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EffectAndCause posted...

How does MoviePass cut into theater profits though? MoviePass preloads what that theater charges for the ticket to the card, on the theater end isn't it just money like any other money coming their way?

I explained it to you. Right now it doesn't, eventually it could. AMC sees no reason to allow that to possibly happen

EffectAndCause posted...

How does MoviePass cut into theater profits though? MoviePass preloads what that theater charges for the ticket to the card, on the theater end isn't it just money like any other money coming their way?

TheDarkCircle posted...

AMC doesn't want it to continue because if MP grows and becomes a standard, Moviepass can eventually force movie theaters to except a lower fee per ticket sold, or even a flat fee. Moviepass if it takes off could seriously cut into theater chains profits.

AMC sees the writing on the wall
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I don't see how it eventually could though, what leverage does MoviePass have? What profits are they stealing?

Like even if MoviePass becomes huge and everyone uses it, aren't they only making the $10 bucks a month from their members?
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Uber steals profits from regular cab companies. If MoviePass was providing the actual movies that'd be one thing, but they're paying the theaters FOR their members' tickets.
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EffectAndCause posted...

I don't see how it eventually could though, what leverage does MoviePass have?

If a significant number of people attending theaters are doing so through MoviePass, they have a lot of leverage. If AMC doesn't play ball, they may find that suddenly MoviePass users are directed elsewhere. "Give us millions of people a discount, or we will take our business elsewhere."

It's a very similar logic to the reduced prices seen in single-payer healthcare systems. An individual buyer has no leverage over the seller. All the buyers together have incredible leverage.
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OH I understand, like MoviePass will make it so their services don't work at their theaters?

Alright I can see the problem now, thanks for clearing it up.

What can AMC realistically do though? Nothing MoviePass is doing is illegal at all.
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EffectAndCause posted...

OH I understand, like MoviePass will make it so their services don't work at their theaters?

Alright I can see the problem now, thanks for clearing it up.

What can AMC realistically do though? Nothing MoviePass is doing is illegal at all.

Right now there's nothing AMC on their own can really do. The card you get from MoviePass is essentially a MasterCard debit card that preloads with the amount of money needed for the ticket. AMC would have to stop accepting MasterCard in order to stop em

TheDarkCircle posted...

AMC doesn't want it to continue because if MP grows and becomes a standard, Moviepass can eventually force movie theaters to except a lower fee per ticket sold, or even a flat fee. Moviepass if it takes off could seriously cut into theater chains profits.

I thought theaters didn't make much off ticket sales anyways? At least that's what the folks on the movies board is always saying. That's why they charge $8 for popcorn.
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lilORANG posted...

TheDarkCircle posted...

AMC doesn't want it to continue because if MP grows and becomes a standard, Moviepass can eventually force movie theaters to except a lower fee per ticket sold, or even a flat fee. Moviepass if it takes off could seriously cut into theater chains profits.

I thought theaters didn't make much off ticket sales anyways? At least that's what the folks on the movies board is always saying. That's why they charge $8 for popcorn.

That is true, but no company is in the business to accept EVEN LESS than what they make tho generally.

To this point tho, there have been some theater chains that have come out in support of MP because they make up the money on food sales. Especially those newer theaters that offer a full menu, they're all for it.

AMC is just being a greedy bunch of assholes.

Just signed up, might as well ride this wave for as long as it lasts.
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Can I pay extra to get two tickets at once yet?

When I first heard about it last month you could only order one ticket and couldn't use two subscriptions to make one order, so for theaters like all the ones near me where the seats are all assigned by ticket, it's a pain in the ass to do date night.
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EffectAndCause posted...

Just signed up, might as well ride this wave for as long as it lasts.

Good move. There's no reason not to. Hell where I live even if I go to the movies less than once a month its still cheaper to have MP.

it doesnt an never will
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TheDarkCircle posted...

To this point tho, there have been some theater chains that have come out in support of MP because they make up the money on food sales. Especially those newer theaters that offer a full menu, they're all for it.

AMC is just being a greedy bunch of assholes.

that makes a ton of sense

I can see how this would benefit those theaters with full dinner menus and drinks for sure. Usually have fewer screens for obvious reasons, but tickets aren't super relevant for their revenue, it probably helps to homogenize the price for those businesses
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