The subscription-based service for moviegoers made headlines in January when it blocked some of the busiest AMC theaters from its app. Those venues include locations in New York City’s Times Square, Los Angeles’ Universal CityWalk, and the Boston Common.
AMC and MoviePass have had a contentious relationship in recent months. AMC chief Adam Aron dismissed the company as a “fringe player,” threatened legal action, and predicted MoviePass would fold because of an unsustainable business model. MoviePass offers subscribers the chance to see a movie-a-day for a $9.95 monthly fee. That’s less than the cost of a single movie ticket in places such as New York City and Los Angeles. MoviePass subsidizes moviegoing and pays theaters full price for the tickets its users buy. It believes the data it collects on consumer behavior can eventually be monetized and is also selling ads to studios.
MoviePass said that it only blocked AMC locations because it wanted to test consumer behavior and see if users would attend other nearby theaters if certain locations went offline. It also likely wanted to demonstrate its commercial heft. Deadline estimated that MoviePass accounted for roughly $2 million of business on a weekly basis at AMC locations, citing insiders at the company.
Some theaters have been receptive to MoviePass. The company has formed partnerships with the likes of Studio Movie Grill and Landmark.
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