*Although MoviePass has been around since 2011, it didn’t make any major waves until this week, after the company announced it would slash the price of its all-you-can-watch movie buffet to $9.95 a month.
Mitch Lowe, an early Netflix executive who now runs MoviePass, says customers can get in to one showing every day at any theater in the U.S. that accepts debit cards. MoviePass will pay theaters the full ticket price used by subscribers, excluding 3D or Imax screens.
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Ted Farnsworth, chief executive officer at Helios and Matheson, said the goal is to amass a large base of customers and collect data on viewing behaviors. That information could then be used to eventually target advertisements or other marketing materials to subscribers.
“It’s no different than Facebook or Google,” Farnsworth said. “The more we understand our fans, the more we can target them.”
MoviePass hopes this new strategy will resolve what Lowe sees as the biggest factor to blame for the theater industry’s decline: high price of tickets.
“The top four cinema operators, led by AMC Entertainment Holdings Inc., lost $1.3 billion in market value early this month after a disappointing summer,” per msn.com.
“People really do want to go more often,” Lowe said. “They just don’t like the transaction.”