MoviePass relaunches its all-you-can-watch movie theatre service

A Netflix for movie theatres, MoviePass promises that for a monthly fee ranging from $29.99-$39.99, a user can watch all the movies they can (though no more than one per day, for those who like to schedule old-school double features on rainy Saturdays). Last year, the service launched without the support of the movie industry and quickly shut down amidst reports that
ticket booth employees were not accepting the printed vouchers. Now, after a successful private beta test, the service is rolling out nationwide. Exhibitors still don't support the service, but MoviePass found a way around that. Using a smartphone app, viewers select the show they want to see while they are within GPS range of the theatre (I suspect the geolocation is to prevent sharing, since few people would be willing to give up their phone just to let a friend score a free movie ticket). Then, a prepaid debit card loads with the correct amount, and people can buy their ticket. Looks simple enough, though I imagine there are still a few kinks to be worked out. For example, when I lived in Ohio, we paid a tax on our movie tickets. Would MoviePass cover that? Or would the customer have to pay the difference?

Details aside, it's interesting that MoviePass is able and willing to move forward with the product without the support of exhibitors. They say that they have had conversations with some chains about the project, and received the support of a few independent theatres--but that hasn't led anywhere. They have also made sure to tout the fact that MoviePass members bought 123% more concessions, a big profit center for movie theatres.

Even without the support of the exhibition industry, the industry may eventually come around. Movie theatre attendance is declining. A service like MoviePass could be a big help in terms of bringing people back into theatres. One potential hurdle to getting exhibitors on board is that a small percentage of moviegoers who attend very frequently account for most of their profit. No one wants to cut into the returns from these viewers. However, with MoviePass, you don't really break even as a customer unless you see a movie every week. I suspect an extremely small percentage of people go to the movies more than once a week, or even every single weekend. Currently, MoviePass pays exhibitors (and by extension, studios) full price for every ticket. It loses money when customers see seven movies in a month. It might make a little profit if someone sees only three. Long-term, though, can MoviePass really sustain its business by only making money off under-users? Won't those people eventually cancel when they realize they're not getting their money's worth? The long game for MoviePass will have to involve negotiating for discounts from studios and exhibitors in order to make the product viable long-term.