Not much of a surprise, really.
As it turns out, MoviePass has been growing quite a bit. But they’ve apparently decided to that they have enough time to put the screws AMC for crossing them way back when they started last year. Because they’re cutting several AMC theater locations from their service; ten across the country in fairly high-traffic areas, like AMC Empire 25 NYC and Century City.
MoviePass has also started to open up about their broader plans, not that they’ve established themselves. First of all, they’re getting more aggressive in convincing theater chains to share some of the money they’re making from increased concessions sales. Which, naturally, AMC is against, and see above for what is likely MoviePasses rebuttal. According to MoviePass CEO Mitch Lowe:
We’re spending millions and millions of dollars every week at those top three. Those customers are spending on average $13 on popcorn and soda, which is more than double the norm, because they’re not shelling out money for their ticket. The minute we start to not show every theater in the AMC brand, or every movie, that’s when that will start to turn around.
So yeah, they’re putting the strongarm on theater chains, just a bit. But their plans don’t exactly end there. They’ve already acquired a studio; The Orchard. In addition, at Sundance, they obtained sole distribution rights to American Animals, which recently debuted at the festival. As a matter of fact, that Wired interview implies that Lowe foresees MoviePass exclusives being a thing, in addition to sports as well as non-traditonal media, whatever that means.
While it seems that AMC’s initial fears that MoviePass may wind up with the lion’s share of power isn’t entirely unfounded, it’s not quite scary… yet. After all, theaters have, in recent years, become less popular and more expensive, especially in comparison to how home theater things have become more common. While not all of their plans may pan out, their core service is fairly sensible, and that’s probably the important, here.
Source: Gizmodo
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