MoviePass was a great idea; it was also a noble effort; and a tragic disaster. Offering consumers the ability to see unlimited movies every month, for a simple—and practical—monthly subscription fee, seems like a good business model. Unfortunately, despites the concept, it has been difficult to execute. And that left a lot of people disappointed.
But the company is not giving up. After taking some time to reevaluate their methods and strategies, and to formulate some new ideas, MoviePass is taking another shot at the big time.
According to MoviePass CEO Mitch Lowe, “We have gained a tremendous amount of insight into moviegoers and the industry over this past year and a half. MoviePass subscription, MoviePass Films, and Moviefone now have a winning combination that we believe will drive consumers to our films, and re-energize casual moviegoers to go more often and see great films in local theatres—films that consumers often wait to see much later through streaming services.”
Indeed, the company commits, in a news release, “Our new business model no longer depends on achieving revenues from studios or exhibitors to succeed, but instead will prioritize the economic relationship among our MoviePass subscription service, MoviePass Films production business and Moviefone multimedia information and advertising service.”
Essentially, the company’s “new strategic direction” has three pillars. These three pillars are: MoviePass (as a service), MoviePass (production), and Moviefone (which parent company Helios bought from Verizon).
With that, Helios and Helios and Matheson Analytics CEO Ted Farnsworth “By spending the last several months analyzing the many different aspects of our prior business model, in terms of what worked and what didn’t, I believe we’ve been able to illuminate the path forward.”
The company believes, then, that after unifying these efforts, it can perform better in terms of sharing and leveraging its available resources. Farnsworth confides that they have taken a much closer look at the unique ecosystem of their model and are ready to move forward.
But while some may remain uncertain—or even downright critical—about the future of the brand, CEO Mitch Lowe remains optimistic. He opines that the bigger, combined brands will drive growth and encourage casual moviegoers to make more visits to the theatre, particularly choosing to see films on the big screen that they might have otherwise waited to see at home through a streaming service.