As movie theater attendance continues to drop, theaters are struggling to figure out how to keep seats filled without resorting to endless sequels and unnecessary reboots. Mitch Lowe, a former executive at Netflix, might have a plan to rescue the movie industry: adopt the payment strategy of the company he helped build. Lowe is currently running
Lowe is currently running MoviePass, a start-up he founded in 2011 that initially offered a tiered movie theater subscription model based on a customer’s location and how many films they watched per month. But according to a recent report, he’s planning to change the company’s subscription model to a monthly fee of $9.95 for all customers, hypothetically letting all subscribers see approximately 30 movies (or more) a month for less than $10.
The movie industry is still seen as one of the staples of the American industry entertainment, but ticket sales for 2017 are currently less than they were at this point in 2015 and 2016. Many believe this is because of the increase in at-home options such as Netflix and Hulu, making it easier for people to watch great movies without having to get off the couch. It is also believed to be due to the continuing rise in theater ticket prices, as the average cost of going to the movies in America hit another record high in the first quarter of 2017.
This is where MoviePass comes into play, as this new plan would allow movie lovers to see as many movies as they want for one flat rate. Apparently, MoviePass’s monthly fee will cover tickets at any theater that accepts debit cards, save for IMAX or 3D screenings. Lowe believes people have become more comfortable with subscription-based payment, they have become less comfortable with the idea of having to pay for something like a movie each time they go. It’s certainly an innovative approach to the movie-going experience, but whether it will actually get people back into theaters remains to be seen.