Moviepass — Improved and Disrupting
Posted on December 28, 2017 at 10:16 pm
Netflix co-founder and former president of Redbox Mitch Lowe and Ted Farnsworth, chief executive of Helios and Matheson Analytics bought a controlling stake in MoviePass in August for $27 million and have made improvements that have led to (1) a surge in participation and (2) fury from theater owners. For $9.95 a month, customers get an app that gets them as much as a movie ticket a day. The new owners reduced the monthly fee and membership skyrocketed. But theater owners are not happy, refusing to sign up, and have even threatened a lawsuit — it’s not clear what the basis would be as they get paid full ticket price when a member uses the app. And it’s not clear Moviepass can sustain the new price if, as one happy member told the New York Times, the app has increased his monthly movie-going from once to 12 times.