Mitch Lowe was one of the co-founders of Netflix and is now the CEO of a subscription based service called MoviePass. The tech start-up MoviePass lets you watch a movie in USA theaters once in every 24 hours for a fixed monthly fee.
While ticket sales in the US have dropped a lot of late, here’s Mitch Lowe with a crazy little proposal – let people come in and fill seats throughout the month, for the price that they would generally pay for a single ticket.
Yes, the MoviePass CEO on Tuesday announced that the company had plans to drop its monthly subscription to as low as $9.95. Customers will be allowed to watch movies in any theater across USA, except for 3D or Imax screens, and MoviePass will pay the theaters the full price of these tickets.
We aren’t sure how MoviePass intend on making revenue from this and Lowe hasn’t announced a finance model either, but we are sure that they will begin this venture in loss. To combat that, the company sold majority of its stake to Helios and Matheson Analytics Inc., a publicly traded firm based in New York.
The price of tickets in the US has almost doubled in the last 20 years and the average price of a single ticket is around $9 at the moment. However, this move by Lowe can allow you to watch 30 movies a month for the same price of a single ticket. Sounds good, doesn’t it?
However, AMC Theatres may turn out to be a spoke in their wheel, as they have slammed MoviePass’ idea and have also threatened to take legal action. They have said that this model is “not in the best interest of moviegoers, movie theatres and movie studios.”
Watch this space for developments on this news.
