MoviePass was created in 2016 and is a revolutionary addition to movie goer’s lives. MoviePass allows subscribers unlimited amounts of visits to the theaters for only $9.95 a month. This business isn’t the first of its kind, but it is the first for its price. The low number has attracted a large consumer base, one that allows for the company to have more than tripled their revenue in one year. MoviePass decided their target audience was people under 35 years old. This allowed them to come up with a marketing strategy that followed the lifestyle and desires of this target age group. Forbes magazine interviewed the CEO of MoviePass, Mitch Lowe, who said, “It’s like health insurance: The first sign ups are the people that are going to go to the hospital. You have to weather the storm to get to the profitable subscribers. You’ve got to get enough breakeven customers to off-set the expensive ones”. This helps explain MoviePass’s low pricing strategy.
In terms of the future market for this product, one might have viewed it was myopic before reading this article. Going to the movies has seemed to be an unpopular activity in recent years. The convenience of services like Netflix and On Demand are seemingly more in line with what modern day consumers are looking for. In contrast, Mitch Lowe argues that MoviePass has brought a facelift to movie theaters and going to the movies. Lowe says, “We’re bringing in thousands and thousands every day. And our customers are going to twice as many movies as they went to before. Sixty to seventy percent of our subscribers say, “I wouldn’t have gone to the movies if it hadn’t been for MoviePass. They tend to like the movie at a higher rate”. This is what makes some so interested in the concept of MoviePass. MoviePass recommends movies and films to its customers, especially independent films. This is a differentiation strategy that promotes unconventional movies to customers and increases these smaller films box office. This is seen in the box office numbers where MoviePass goers have been up to 10% of the viewers. The affordability of the program is an obvious strength, but its ability to bring life back to going to the movies will be what continues to make it a success.