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Anthony D'Alessandro

Deadline: MoviePass Jumps Past 1.5M Subscribers In The Post-Holiday Period At The B.O.

 

Less than 30 days after hitting 1 million subscribers, Helios and Matheson Analytics’ MoviePass has now swelled to 1.5M monthly customers.

 

“MoviePass is attracting people back to the movie theaters by lowering their cost, which we believe is transformational for the industry,” said Ted Farnsworth, Chairman and Chief Executive Officer of HMNY in a statement. “We believe the data MoviePass collects from these million and a half movie-goers will become an important asset to our partners and the future of the movie industry,” Mr. Farnsworth continued about the service which provides subscribers with unlimited movie tickets for $9.95/a month.

“Based on the dramatic increase in the number of MoviePass subscribers over such a short period of time, we believe MoviePass will continue to grow its subscriber base significantly,” added Mitch Lowe, Chief Executive Officer of MoviePass. “We’re giving people a reason to go back to the movie theaters and they’re going in droves. With awards season here, we hope we can make Hollywood and exhibitors very happy by filling seats with eager audiences.”

In a $1 billion holiday movie period where moviegoers are seeing anywhere from two to four titles in a two week period, Lowe informed Deadline in November that “We’re funded properly to pay for” the holiday box office period; that the run on the B.O. would not drain the company.

MoviePass has been met with plenty of skepticism by those in the industry, chiefly how the model of charging a monthly price that’s lower than most metropolitan average movie ticket prices can stay afloat (while the consumer pays only $9.95/a month, MoviePass pays full price for each ticket to the exhibitor). Largely big exhibitors like AMC are ticked off that an outside player is determining the new cost of a movie ticket in consumers’ heads. Studios are largely agnostic to MoviePass: The service isn’t taking any money out of their hands, and if they can drive more business to the cinema, then more power to them.

Deadline: MoviePass Reports B.O. Impact On ‘Justice League’, ‘Coco’, ‘Three Billboards’ & More

 
 

MoviePass revealed various results this morning of how their monthly movie ticket subscription program is moving the needle for a number of titles in release at the fall box office. Currently, any moviegoer who wants to attend the cinema an unlimited number of times need only pay MoviePass $8 a month. 

Many inside distribution and exhibition have wondered how MoviePass will make money in the long run; and part of the company’s financial plan to offset those losses will come from marketing partnerships with studios and distributors.

To date, one MoviePass collaboration was with Bleecker Street’s Thanksgiving stretch release The Man Who Invented Christmas which the ticketing agency reports that they “realized a further 48.3% lift to ticket purchases for the title against a statistically relevant control group which was not a part of the marketing campaign.” To date, The Man Who Invented Christmas has grossed $4.3M at the domestic B.O.

Lionsgate/Amazon Studios’ Last Flag Flying. MoviePass reports that they “realized a further 53.3% increase in ticket purchases for the title against a statistically relevant control group, which was not a part of the marketing campaign.” Last Flag Flying has not been one of Amazon’s successes this season earning less than $1M.

In addition, MoviePass reported the following impact figures its subscription program had when it came to the box office. Duly note that studios on their side cannot verify these box office figures: They cannot see what portion of their hourly grosses are generated by MoviePass. Again, MoviePass only counts 600K subscribers, so marketshare figures are small. One major studio executive told Deadline recently that if MoviePass controlled a formidable share of admissions on a weekly basis, on par with Imax, then they’d take the company very seriously as a moviegoing partner. Of note:

–MoviePass’ ticket purchases accounted for 13.21% of the opening B.O. ($62K) for Sony Pictures/Columbia’s Roman J. Israel Esq.  “This represents more than a 6x increase on the average 2% of the box office that MoviePass contributes to nationwide,” says the company.

–MoviePass’ ticket purchases repped 10% of the opening B.O. ($322K) for Fox Searchlight’s Three Billboards Outside Ebbing, Missouri. 

–Moviepass repped 1.78% of domestic box office for Warner Brothers’ Justice League  — that’s $1.7M off an $93.8M opening. “Even as the domestic box office for the film shrunk to nearly 27% of opening weekend box office for the second full week MoviePass’ ticket purchases actually climbed to 2.17% of domestic box office total during that same period.”

–For Disney’s Coco, MoviePass’ accounted for 1.34% of the pic’s opening B.O. of $72.9M or $977K.  Coco‘s ticket sales eased close to 50% in weekend 2 with MoviePass’ percentage contribution to the domestic box office upticking to 2.18%.

–On Universal’s The Snowman, MoviePass fueled 3.54% of the pic’s $6.6M opening weekend or $233K.

“The data speaks for itself – our data shows that MoviePass has a demonstrable impact on revenue figures and percentage contributions to overall box office receipts for both major studio releases and independent films during Opening Weekend,” said Mitch Lowe, CEO of MoviePass. “And in partnering actively with studios, exhibitors and distributors to promote particular titles, we continue to drive even more tangible benefits to both movie exhibitors and studios.  With studio-driven revenue, we have delivered on our promise to investors that our business model will continue to expand beyond subscription fees.”

“Studio and distributor executives are increasingly understanding our impact on box office receipts. But we’ve moved beyond ideological discussions in Hollywood to the tactical – how we can partner with studios and distributors to actively influence moviegoing behavior in order to have our subscribers select and buy tickets to their titles over other movie options,” said Khalid Itum, VP of Business Development at MoviePass. “And while it can no longer be disputed that our opening weekend box office numbers are consistently significant at this stage in our company’s growth, I think the real story here is the velocity of our impact: that MoviePass’ contribution to those box office totals grow beyond opening weekend for sustained performance in the theatrical window even as box office receipts decrease overall on a weekly basis.”

MoviePass also announced today that they’ve signed a marketing-performance based revenue agreement with an independent distributor, but did not name the company in their release. “Under terms of the agreement, MoviePass will provide active marketing services to a particular title and will earn revenue based on the incremental increase in ticket prices demonstrated in the theatrical release of the film,” read this morning’s statement.