The Winners And Losers In The Deal With MoviePass

If you are one of the 3 million subscribers MoviePass likes to refer to when talking about their community that "has shown an immense amount of enthusiasm over the past year," you probably know by now there's not a whole lot to be enthusiastic about anymore.

Limited movie selection, surge pricing, and a monthly price increase are just a few of the new changes MoviePass subscribers are subject to. Not to mention the short notice that come with such changes, a bug-ridden app, and those occasional times when the company runs out of money.

If you're not one of those 3 million subscribers, there's a chance you're wondering why anyone is complaining. After all, $9.99 per month...sorry, $14.99 per month now...is still a steal for the benefits offered. And if people go often enough, doesn't MoviePass still save them money, even with surge charges that can reach an extra $8 on top of the subscription price?

MoviePass surge charges reach $8 as company struggled with financing their service.

MoviePass surge charges reach $8 as company struggled with financing their service.

MoviePass certainly shook up the movie industry, but maybe not in the ways it intended. These are the winners and losers of what MoviePass has set into motion.

The Losers

MoviePass - First and foremost is the company itself. It was reported that MoviePass has been spending $22 million per month fulfilling ticket costs for its customers.  That's a hefty pricetag to satisfy $9.99 subscriptions. But hey, nobody forced a price cut that low. Many people would've been happy with an AMC A-list type of plan. Not only did the company's ambition come at a heavy financial cost, but consumer and investor confidence has plummeted, based on unstable stock prices and the growing number of complaints from customers online as issues continue and show no signs of getting better.

MoviePass Customers - Yes, even with all the pricing inconsistencies, MoviePass can be a good deal for some of its subscribers...when the service is working. A faulty app, poor customer service, and on-demand policy changes have generated immeasurable frustration among MoviePass users. When you show up to a theater and a new policy has blocked the movie you wanted to see, or you're expected to pay up to $8 more than you expected per ticket, it puts a bad taste in your mouth for the company. The irony is that if MoviePass has begun with limited movie availability and surge pricing, most users would probably have been satisfied with the service. Unfortunately when an expectation has been set, it's not easy to radically change it, and MoviePass customers are now dealing with the short end of that stick.

MoviePass regularly indicates that their card service isn't working, making movies impossible to see with MoviePass unless you have an e-ticket theater nearby.

MoviePass regularly indicates that their card service isn't working, making movies impossible to see with MoviePass unless you have an e-ticket theater nearby.

MoviePass Investors - MoviePass so far has offered no viable plan to becoming profitable. So when can investors and shareholders expect to see a return on their investment? It's true there are many companies that have gained significant popularity over the past few years, yet remain unprofitable, like Spotify, Dropbox, and Uber. The difference is that service like these have been able to expand benefits to customers, not restrict them, and confidence among users and investors is high. MoviePass has not built such a reputation for itself yet, and if it's able to get itself out of the rut it's in, it may be a long time before the company earns a respectable reputation.

The Winners

Theaters - MoviePass explained in a recent apology email to customers that "the first half of 2018 saw the total box office grow by almost 10 percent compared to last year," which they proceed to take credit for. For $22 million a month, perhaps they deserve to. But what that means is that moviegoers that didn't have to pay for their ticket were more at liberty to buy concessions....the big money maker for theaters. Major theater chains aren't as loose-lipped about the effects of MoviePass, but its a safe bet that...even with some push back against MoviePass...they're likely enjoying the flow of MoviePass customers that wouldn't have been at the theater without it.

Sinemia is capitalizing on summer, just in time for scathing MoviePass policy changes.

Sinemia is capitalizing on summer, just in time for scathing MoviePass policy changes.

Sinemia, And Other Subscription Services - MoviePass isn't out of the game yet, but with all their problems in public now, customers are jumping ship and moving to more reliable options. Sinemia has been running ads since back when MoviePass was gaining popularity. But with significantly less benefits, it was a wonder why they tried to advertise against MoviePass. Well, I'm sure those ads are paying off now as people seek out new options. Cinemark and AMC have also launched their own subscription service, with AMC's A-List being the one that most resembles a sustainable version of MoviePass.

 

So yes, there are benefits to what MoviePass has set into motion. The unfortunate things is that most of those benefits are being enjoyed by third parties; outlets that have no investment in MoviePass. For the people who are invested into MoviePass, it is not fun being entangled with the company right now. Toleration and frustration go hand in hand for anyone who has bought into the promises MoviePass is not able to live up to. Therefore, the backlash the company is getting is well-deserved; it's the fallout of all their good intentions.

Yes, that's a line from a film MoviePass blocked. Please forgive the irony.