MoviePass's MoviePass subscription has become massively popular over the past year, offering something so simple and sensible that it was inevitable: a movie a day for $ 10 a month. However, this plan did not work for MoviePass's bank account and money and customers began to bleed. Now he hopes for a comeback by making things extra complicated.
The beleaguered execs of MoviePass are doing a bit of media flash today with the profiles in Wired and the New York Times. The big snack is that everyone wants things to be alright, perfectly alright! But they know they made some mistakes and miscalculations along the way. One misperception was that they could lose a lot of money while convincing cinemas and businesses that MoviePass is a valuable tool that could eventually turn into a profitable, data-driven advertising business. They managed to pull through the loss share – $ 137 million in the last quarter – but the profit share remained difficult to match.
Mitch Lowe, CEO of MoviePass, told Wired that the company was growing too fast and that paying the full price for all these tickets is too expensive for the proof-of-concept phase. In the last year, customers were surprised when they estimated their plans with changes such as price increases, the demand for photos of ticket stubs and my personal favorite. According to Wired, the Better Business Bureau has filed 2,493 official complaints against the company, as well as class actions and Securities Fraud Investigation . But listen, everything is fine.
"I do not think people today trust the MoviePass brand," said Vice-President of MoviePass, Khalid Itum, The New York Times. Itum essentially assumes the position of CEO of Lowe, but not the title. Lowe will focus on long-term planning, while Itum does the daily business. According to a Business Insider report in November, this agreement has been going on for some time and has been causing internal confusion with people who could not understand why Lowe was not there.
"At the end of the day, I believe a lot People have lost sight of the fact that MoviePass is a technology company," said Khalid Itum, executive vice president of MoviePass. "Tech companies test and iterate, test and iterate. We almost made a mistake. "A note from the technical playbook Itum is going to do is kill its marketing spend. In the early days, companies like Google did not spend money on traditional advertising because they believed good products attract people – a philosophy that has changed a bit lately. Itum told the Times that MoviePass does not regain confidence when it comes to marketing, but to repair the product.
The latest fix for the product offers three levels of subscription:
The Select Plan – $ 9.99 Three Movies per Month, but your selections are limited to a MoviePass selected menu changes every day. That's what MoviePass has been offering since August.
The All-Access Plan – $ 14.99: Three Movies per Month, and you can watch every 2D standard show of every movie in your area.
The Red Carpet Plan – $ 19.99: Three standard 2D movies per month plus one Imax or 3D screening per month.
These monthly plans will not be available until next year, but you can sign a subscription for the two more expensive options is now available for one year.
For all that Itum talks about being a tech company trying to create the most satisfying experience for users, these changes are far removed from science. The price does not differ much from its rival Sinemia, though this service was plagued with complaints about unexpected charges. MoviePass is still cheaper than buying tickets the traditional way, but it's only worth it if it does what it says and does not mix beach chairs in a month.
It's true that MoviePass now presents the biggest challenge users believe they will not be fooled around again. This is not solved by some chic profiles. Oh, and the other big challenge is making money. You also have to find out.
[MoviePass, The New York Times, Wired]