as an entertainment editor at the verge
I spent a lot of time of movies but most
people say the opposite last year in the
US and Canada
theater attendance dropped to 25 year
low and I get it these days movie
theaters are competing with Netflix and
Hulu 4k flat screens and video games and
as attendance goes down ticket prices
have gone up making the whole thing more
difficult to justify in the first place
but lately some friends and colleagues
have been trying to see more movies or
something called movie pass if you
somehow haven't heard of it the pitch
for movie pass was simple spend 10
dollars a month and you can see up to
one movie a day for a lot of people that
seemed too good to be true and by June
of 2018 over 3 million people had signed
up for the service it seems like
everybody should win but in reality
everybody's losing movie pass its
customers and feeders but by
popularizing subscription services who
he passed may have shown feeders the way
to control their own destiny movie pass
caught on because it seemed too good to
be true and sure enough it was this year
alone the services baton switched on
surge pricing repeat viewings and
theater availability and that's just for
starters
in the meantime theaters are frustrated
because a service like movie past
prevents them from competing on things
like premium screens and better seating
imagine being a Netflix subscriber only
to find out on the day that stranger
things comes out that you have to take 3
extra bucks to watch it and you can only
see it once that's the kind of stuff
that movie past customers have had to
deal with and that's after the company
decided to get rid of its movies a plan
before designed to bring it back again I
mean look the whole thing really is a
mess and it comes down to the fact that
movie path doesn't make money the
company hopes that when it hits a
certain subscriber base size all the
math will magically work out in the
meantime it's burning through cash
causing the stock price of its parent
company to plummet the fix apparently
seems to be to get its customers to just
stop going to movies or if they do to
pay up movie past customers taking the
hit stress become a pretty common theme
what happens when that couldn't get AMC
theaters to the negotiating table
somethingit's subscribers couldn't
access 10 of AMC's busiest locations and
what about it was advertising movie that
was opening opposite Jennifer Lawrence's
new film suddenly its customers couldn't
access Jennifer Lawrence movie either
that's not to say it's all terrible for
some people movie pass really is a great
value and that's fantastic and according
to the company its customers do spend
more on popcorn and concessions which is
great for theater owners but it's
essentially middleman trying to build
its own business on top of what theaters
have already done whether they wanted to
or not
Doug white executive director of the
Hollywood Theater in Portland Oregon had
some particularly frank thoughts on the
subject they suddenly inserted
themselves into our business model sold
them the same ticket set cheaper food we
pass says you know we basically stole
your customers and now to get them back
we want a clock it's just a weird
business model and not something that
we're finding terribly friendly you know
I mean we've created something that we
don't feel like we're dependent on when
we pass right like we've created our own
and our community our own earths our own
benefits that movie pass and see the
problem is something like movie passes
that it prevents theater chains from
competing for your business major chains
usually show all the same movies they
compete on things like location pricing
and quality of presentation laser
projection HDR sophisticated surround
sound seventy millimeter these are all
ways that theaters can compete for your
business and lure your away from your 4k
living room TV the movie pass ignores
that premium experience and the sizable
investment theaters made to get it but
offering just the entry level 2d
experience it dumps theaters down
turning in 19th of movies into a
commodity experience where the only
thing worrying about is in price that's
a great if you don't want to spend
fifteen dollars to see Deadpool - but is
dangerously short-sighted because when
you convince customers that movies
aren't worth paying for and that
presentation doesn't matter
you're unintentionally removing every
reason for them to leave the house at
all
there's no denying that movie pass has
changed the dynamics so the question
becomes how do theater chains react AMC
which has had no qualms about talking
smack about movie pass in the past
recently launched its own subscription
service called a list that service cost
$20 a month and you can see three movies
a week but with no restrictions you can
go to AMC prime with Dolby vision or
IMAX or anything else the theater has to
offer
give them that's the biggest chain in
the world a lot of people that's going
to be pretty compelling we're used to
thinking that disruption is the answer
to everything and that cheaper
automatically equals better but that's
not always the case
going to the movies isn't experience and
the more that theatres can control their
own destiny and react to the wants and
needs of their customers the better
kinds of experiences they'll be able to
provide now if they can't control the
quality and variety of the movies
arriving in their theaters but that well
that's gonna be an entirely different
video mama mia guys huh huh I know
here's what we're doing this is this is
how we're starting guys right here this
is it okay starting again if I haven't
slated that's the slate
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