AMC theaters attempt to compete with MoviePass business model
MoviePass allows members to watch several movies a month for a subscription. The business has been struggling for a while due to the increased cost of their business model.
MoviePass leaders have continuously made changes to their business model to decrease the cost of the program. It started by ending the unlimited watch option, which enabled its members to watch an unlimited number of movies every month.
MoviePass then capped the number of movies you can watch per day and month.
MoviePass recently encountered an issue where their service went down due to a lack of cash flow to pay the movie theaters for the bills.
What made it very interesting that today, AMC theaters, the big movie theater network, if not the biggest, came up with a subscription model to compete and grow their revenue stream. Business for their members.
The program is well designed as it’s part of their loyalty program and will only be eligible for members that are enrolled in their loyalty program.
The implications that could happen on MoviePass from this membership could quickly speed up for MoviePass to be at a significant competitive disadvantage.
For more details on AMC subscription model click here courtesy of CNN
Also, you can find more information here, courtesy of CNET