MoviePass’ bid for cineplex domination rolls on. After lowering its subscription rate to $7.95 last month, the moviegoing service is slashing prices yet again, this time dropping to $6.95 a month. That monthly rate, if you’re unaware of MoviePass’ controversial model, pays for one movie ticket per day at select cinemas. Not everybody loves the deal.
The new entry price is only for new users and, it should be noted, comes with a processing fee of $6.55. Still, that’s not much more than an average movie ticket, all told. Use MoviePass more than once and you’re already reaping its benefits. Also, it’s kind of unbelievable when you consider that just last summer the monthly rate was roughly $50 per month.
Variety notes that “industry observers suspect [MoviePass] is operating at a significant loss,” especially since the company essentially subsidizes the cost of a ticket for theatergoers. The report also points out that the service has said it hopes to increase revenue by selling the “invaluable data” it collects on its customers to theater chains and studios — thus, the push for new subscribers.
MoviePass isn’t content to just peddle tickets, though. In a statement, the company said it’s “diversifying its revenue streams” through heretofore unknown marketing agreements and partnerships with studios, film companies, and theater chains. It’s also getting into the producing game, having recently acquired Bart Layton’s heist drama American Animals out of Sundance.
“Our vision has always been to make the movie going experience easy and affordable for anyone, anywhere,” said MoviePass CEO Mitch Lowe, in a press statement. “With the current growth and support that we’ve seen within the last several months, our studio and exhibitor revenues and other marketing partnerships have motivated us to lower the price once again, offering movie lovers greater access to MoviePass.”