MoviePass, a company that lets you see a movie a day in over 4,000 theaters nationwide for one monthly subscription fee, announced that it has lowered its subscription price for $10 a month. The fee will let customers get in to one showing every day at any theater in the U.S. that accepts debit cards.
According to a report by Bloomberg, movie theaters struggle with sales as ticket prices increased over the years. Mitch Lowe, an early Netflix, Inc. (NASDAQ: NFLX) executive who now runs the startup MoviePass, hopes that the new strategy will help solve the problems of the declining movie industry. The Bloomberg report also indicated that Lowe blames the high price of tickets, not competition from Netflix or Amazon.com, Inc. (NASDAQ: AMZN) streaming services. “People really do want to go more often,” Lowe said. “They just don’t like the transaction.”
“The top four cinema operators, led by AMC Entertainment Holdings, Inc. (NYSE: AMC) lost $1.3 billion in market value early this month after a disappointing summer. The number of tickets sold in the U.S. and Canada last year declined slightly, while box office revenue rose just 2 percent thanks to pricier tickets, according to the Motion Picture Association of America, a trade group,” Bloomberg reported.