MoviePass Sells $128M in Tickets for Oscar-Nominated Films

Startup MoviePass, which charges subscribers $10 per month for the option to watch one film per day in a participating theater, said it has passed 2 million subscribers. The company also reported that it was responsible for $128.7 million of the domestic box office for this year’s Oscar nominated films. MoviePass chief executive Mitch Lowe has described the math behind the company’s claim. He also has an explanation for how the company will survive its biggest economic challenge: that it loses money on any customers who sees at least two movies a month. Continue reading MoviePass Sells $128M in Tickets for Oscar-Nominated Films

MoviePass Ventures Plans to Acquire Films With Distributors

During the Sundance Film Festival, theater subscription service MoviePass announced the launch of MoviePass Ventures, part of a new strategy to co-acquire films with distributors. Data firm Helios and Matheson Analytics Inc. (HMNY), now the majority owner of MoviePass, claims its new service is already boosting domestic box office. HMNY plans to invest in movies so that it can share in downstream revenues, including streaming, pay TV, Blu-ray, DVD, EST, PPV, and ancillary and foreign markets. HMNY could also eventually sell subscriber data to Hollywood studios for targeted marketing. Continue reading MoviePass Ventures Plans to Acquire Films With Distributors

MoviePass Continues Rapid Ascent, Tops 1 Million Subscribers

MoviePass is a service that lets subscribers attend up to one 2D movie screening per day in theaters for a monthly charge. Shortly after a price drop to $9.95 per month in August (from a tiered $15-$50 model), the New York-based company announced it had jumped to 400,000 customers. By October, that number increased to 600,000. Last month, MoviePass dropped its monthly fee again for a limited time offer of about $6.95 per month for those willing to pay up front for a year. Now the company announced it “has since reached one million subscribers in less time than Spotify, Hulu, and Netflix.” Continue reading MoviePass Continues Rapid Ascent, Tops 1 Million Subscribers

MoviePass Cuts Subscription to $10/Month, AMC Fights Back

Early Netflix executive Mitch Lowe is now in charge of MoviePass, and he plans to drop its movie ticket subscription price to $9.95, which will let customers go to one showing per day at any theater in the U.S. that accepts debit cards. In return, MoviePass pays theaters the full price of each ticket, with the exception of 3D or IMAX screens. The company just sold a majority stake to Helios and Matheson Analytics, a publicly traded data firm. AMC has stated it wants to block MoviePass subscribers. Continue reading MoviePass Cuts Subscription to $10/Month, AMC Fights Back

New MoviePass CEO Hopes to Get Theater Owners on Board

Mitch Lowe, a Netflix co-founder and former Redbox president, is now chief executive at New York-based MoviePass, a company that pitches a subscription service for moviegoers. The user gets a debit card, which starts at $30 a month, to attend as many movies as she likes, in movie theaters that cover 90 percent of the country. But movie theater owners are reluctant to fully adopt the non-traditional idea. To gain acceptance, Lowe plans to launch the company’s first major marketing campaign, expand its services and raise more money. Continue reading New MoviePass CEO Hopes to Get Theater Owners on Board


Redbox Hopes to Increase Revenue with Video Game Offerings

Redbox announced that it will begin offering video games for the Nintendo Wii, Xbox 360 and PlayStation 3 in 21,000 of its 31,800 self-service kiosk locations around the country starting June 17.

According to the company’s press release, Redbox has been testing video game rentals alongside movie offerings at 5,000 locations since August 2009. “Redbox has rented more than one million video games in less than two years at these locations, underscoring the popularity of video game play in America,” said Mitch Lowe, president of Redbox.

Redbox parent company Coinstar Inc. believes the select market testing suggests that the company can potentially “increase revenue by replacing 10% to 15% of the DVD slots in its kiosks with games.” (Each machine holds between 70 and 200 titles.)

Games – ranging from Call of Duty: Black Ops and Mortal Kombat to Super Mario Galaxy and Star Wars III – will cost $2 per night (compared to the $1 rental fee for DVDs and $1.50 for Blu-ray discs). For a complete list of initial game offerings, visit the Redbox Games page.

Related Home Media Magazine article (with interesting financial stats): “Redbox to Increase Video Game Presence” (4/28/11)