If you haven’t heard about Movie Pass, then let me briefly explain what it is. Movie Pass is a monthly subscription service that allows, its members, to pay $9.95 a month to watch one movie a day. Although it has changed its subscription plan and terms of agreement many times in an attempt to profit and stop people from abusing their services, it remains a too-good-to-stick-around type of deal. Like, how are they going to make sustainable profit if their customers go to the theaters at least twice a month? Not to mention those movie addicts who go more often than that! Can subscription sales really generate more capital than the cost of ticket purchases Movie Pass must dole out? Well, until Movie Pass becomes too good to be true, I will be sitting back with a large bucket of caramel popcorn, a Root Beer, and a box of Rasinets enjoying the economic benefits of being able to watch as many movies as I want.

The Netflix for the Theatres Is Movie Pass the next Netflix? Well, without going into an elaborate history on Netflix, I will tell you that Netflix revolutionized the way we consume television and movies. It has spawned competitors like Hulu, Amazon’s Prime video, YouTube Red and dozens of other streaming services. People have forgotten the days of re-runs and Blockbuster nights. Now, they embrace binge-watching television shows. So, how will Movie Pass become the next Netflix? Simple. It allows people to enjoy watching movies that they wouldn’t normally pay for at a theatre. For example, I’ve already watched 8 movies since subscribing in February: Annihilation, Death Wish, Black Panther, Tomb Raider, Ready Player One, A Quiet Place, Traffick and Avengers: Infinity War! So, it’s safe to say that my Movie Pass experience has been amazing. I haven’t seen this many movies in a span of 3 months since my movie-hopping escapades in college.

The Dilemma Currently, Move Pass is losing money every time they obtain a new subscriber. Why? Because Movie Pass is essentially paying full price every time a subscriber goes to the movie theater and purchases a movie ticket. They currently do not have any major deals with any of the major theater chains that would charge Movie Pass a discounted price for their subscribers–which is hard to believe since movie theaters are experiencing 3 year lows in the box office attendance and 27 year lows in market value. Analysts believe this is due to millions of people streaming content from online devices and from their televisions. Not to mention–in my opinion–the overwhelming amount of diversity and amazing content that is being created by these streaming companies. The idea Well, some would say that the movie pass model is horrible, especially since it’s rumored that the company is losing $20 million a month. The idea is that Movie Pass will be able to capitalize on data of its rapidly growing 2 million subscribers and be able to steer movie goers to specific films through in app, email blast advertising, special showings for Movie Pass subscribers, etc. They also have a goal to share in concession revenue with theater chains such as AMC by creating deals with restaurants and ice cream shops. I personally think it’s a pretty good strategy to lure people out of their homes with money saving incentives and the promise of a good time.

How long will it last? Well, that’s hard to say. The majority shareholders in Movie Pass is Helious and Matheseon Analytics Inc. and there share have plummeted from $38.86 (52 week high) to around .45 a share (52 week low). So, as I asked earlier, is the Movie Pass too good to be true? At this moment, YES! It’s either going to be the next Netflix whereas it revolutionizes how people consume movies or it’s going to fade to nothingness and be one of those businesses that you wish succeeded.