The subscriber total for MoviePass is beginning to swell at a rapid rate and the motion picture subscription service is already plotting to capitalize with a sexier price point to entice film obsessives.
Variety reports that MoviePass has hit the 2 million subscriber mark, reaching that total thanks to a single month boom where over 500,000 subscribers hopped aboard. Naturally, the company is trumpeting their recent success as the antidote to sluggish box office trends.
“MoviePass is attracting people back to the movie theaters by lowering their cost, which we believe is transformational for the industry,” said Ted Farnsworth CEO of parent company Helios and Matheson. “We believe the data MoviePass collects from these two million movie-goers will become an important asset to our partners and the future of the movie industry.”
The success in growing their subscription base is obviously a big win for MoviePass, but questions abound concerning the sustainability of a model where customers pay below full price for movie tickets while MoviePass ponies up the full amount to theaters. Bloomberg notes that the company is seeking to make this proposition more than a flashy cash burn with an eye on profiting off of aggregated customer data, advertising and a play to gain a portion of concession sales.
At present, new MoviePass customers will shift from the prospect of paying $9.95 per month for the service to a slimmed down $7.95 price point. The deal also includes access to the streaming service Fandor. The two dollar reduction in the advertised price does not take into account the processing fee associated with service, nor does it entirely offset the somewhat malleable terms and conditions of the evolving subscription offering.
The current subscriber trend has MoviePass in a rather bullish mood concerning their future prospects.
“We’re giving people a reason to go back to the movie theaters and they’re going in droves. With awards season here, we hope we can make Hollywood and exhibitors very happy by filling seats with eager audiences,” said MoviePass CEO Mitch Lowe. “Based on the dramatic increase in the number of MoviePass subscribers over such a short period of time, we believe MoviePass will continue to grow its subscriber base significantly.”