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Eric Atreides

Moviepass and its Impact on the Box Office

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AMC A*list TOS...

 

Films that are eligible for this A-List benefit are standard 2D, Digital, films as well as films in RealD® 3D and Premium Large Formats (“PLFs”). PLFs include Dolby Cinema ®, IMAX® at AMC®, PRIME at AMC®, BigD® and D-Box. AMC will make reasonable efforts to include every film but reserves the right to selectively exclude titles on a limited basis. IMAX VR ® and special events such as, but not limited to, fan events, private screenings, movie marathon/double features, Metropolitan Opera, broadcasts of sporting events and other showtimes and events that are priced above standard ticket price admissions (including select showtimes of certain foreign language films) are not eligible and are excluded from the A-List Program.

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https://www.bizjournals.com/losangeles/news/2018/06/25/amc-subscription-offer-raises-studios-eyebrows.html

 

Quote

“If admissions go up [substantially], then I will see an uplift,” a studio executive told the Journal. “But right now I’m going to be taking a haircut.”

AMC arrived at $8.99 because that’s what Cinemark is charging for its new Movie Club, which offers members one free 2D movie ticket monthly. Cinemark’s average ticket price in the first quarter, however, was just $6.61.

The Journal reported that no studios are considering pulling their movies from AMC theaters, but they will be paying attention to how AMC Stubs A-List affects their bottom line and may request changes if revenues decline.

Basically, movies aren't going to get pulled from AMC, but significant changes could come to the service.

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On 6/21/2018 at 11:11 PM, The Incredible Panda said:

That surcharge is interesting.

 

MoviePass

1. Gives you “unlimited” movies a month for $10 a month

2. No Premium seating

3. If “popular” movie means something opening weekend, that could mean $8 extra a month if you see a new release each week.

4. Possibility it won’t still be here at the years end

 

AMC

1. 3 Movies a week for $20 a month

2. Includes premium seating and concession discounts

3. No popular movie surcharge as of now

4. Limits you to AMC.

5. Will safely still be here

6. You can reserve seats

 

If you don’t care about Dolby or IMAX (or your AMC lacks them), if you don’t buy concessions to much, if you don’t care about reserve seating, and/or if you simply have a better theater preference MP would probably be the better deal while it’s here.  Unless you’re seeing more than 4 “popular” movies a month.

 

If you’re seeing more than 4 “popular” movies a month, that alone would make the AMC deal better (if there’s a decent one close to you) as you could see them, in whatever form you want, be able to reserve seats and have a discount on concessions if you ever want them.

 

The worst thing about the AMC deal is I’d feel tied to a specific theater.  But if I were to choose between them the reserved seating and Dolby make up for whatever marginal monthly price you have to pay (especially since the MP price would feel more like 12-16 dollars since I usually see big movies on OW)

 

Thanks for the breakdown. 

 

How does Sinema compare to you guys?

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Having a good 3-4 AMC theaters near me makes this a decent deal. Being able to see a movie a second time on the plan would be nice, but not needed. The price point isn't that bad, and the fact it includes their Premiere perks program has it's benefits as well. The AMCs near me are pretty good. And doing a double feature with this has it's positives.

 

Honestly, the fact that it seems more stable, and less subject to random weird changes that are poorly explained and rolled out is a definite plus as well.

 

Also, it's a small thing, but I do like that they define a week as starting on Friday morning.

Edited by RandomCat
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How long do you guys think AMC will offer it for 19.95? I dont want to get it now, but maybe in a 1-3 months. But worried theyll change the pricing quickly. It seems the deal is doing well since the site and app has apparently been crashing all day.

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4 minutes ago, YLF said:

How long do you guys think AMC will offer it for 19.95? I dont want to get it now, but maybe in a 1-3 months. But worried theyll change the pricing quickly. It seems the deal is doing well since the site and app has apparently been crashing all day.

I guess AMC will go on a full year but they do not commit to it.

 

People that will have reserved now are certain to have the option to pay only $19.95 for a year:

Once you sign up, the $19.95 price is guaranteed for one year (12 months). In case of changes to the membership fee, you’ll be notified via email provided the change is not due to change in applicable taxes.

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10 hours ago, WrathOfHan said:

https://www.bizjournals.com/losangeles/news/2018/06/25/amc-subscription-offer-raises-studios-eyebrows.html

 

Basically, movies aren't going to get pulled from AMC, but significant changes could come to the service.

It sounds like they’re blindsiding studios on this?  I don’t see how they’d permission to essentially give away tickets without providing that revenue to studios.

 

Yikes.

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6 minutes ago, TwoMisfits said:

AMC is doing what Moviepass has tried to do - use leverage (AMC - theater space/Moviepass - customer base) to get what it wants...we'll see if it works or if AMC will be forced to not include any "popular" movies in its plan...

AMC  has more leverage and they do this in the UK for some theater chain they own there. They have the data that backs up that this works. 

 

The plan will likely change and be more restrictive once moviepass and sinemia cease to exist, but by then the other theater chains will have reacted to AMC's plan, so it can't change too much. 

 

The only thing that moviepass is better in is that you can go to a wide variety of theaters. The AMC's near me dont really play indie movies. There are a lot of local indie theaters in LA though

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37 minutes ago, The Incredible Panda said:

It sounds like they’re blindsiding studios on this?  I don’t see how they’d permission to essentially give away tickets without providing that revenue to studios.

 

Yikes.

 

Well they will be paying the agreed distributor cut on $9.00 for every movie seen if I understand correctly (they used the average nationwide ticket average):

 

AMC (NYSE: AMC) will pay its distributor partners’ cut of the box office (typically around 60 percent) based on a ticket price of $8.99 for standard 2D films viewed using A-List

 

So around 53% to 65% for studio movie, 35% of that amount for independant, etc... They will loose money on 3dMovies/IMAX and so on, but on regular 2D the studio will be making quite the same no ?

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Just now, Barnack said:

 

Well they will be paying the agreed distributor cut on $9.00 for every movie seen if I understand correctly (they used the average nationwide ticket average):

 

AMC (NYSE: AMC) will pay its distributor partners’ cut of the box office (typically around 60 percent) based on a ticket price of $8.99 for standard 2D films viewed using A-List

 

So around 53% to 65% for studio movie, 35% of that amount for independant, etc... They will loose money on 3dMovies/IMAX and so on, but on regular 2D the studio will be making quite the same no ?

Ah okay, that was my one concern there.  I reckon, in AMC’s case, they can make up for that lost revenue by bringing people to the theater more often and spend money on their concessions

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13 minutes ago, The Incredible Panda said:

Ah okay, that was my one concern there.  I reckon, in AMC’s case, they can make up for that lost revenue by bringing people to the theater more often and spend money on their concessions

Unlike MoviePass giving 7-8-9 even 14$ by movie seen, them by giving only around $4.50-$5, $6 for the avengers/star wars by movie seen to the studio it take many movies to reach that $19.99 amount they charge, under 5 movie a month and you are still not actively paying that customer to come see movies. Obviously for those heavy user they lost what they would have paid when they bought them individually, but still 53 movies a year is quite a lot.

 

And like you said them unlike MP have the high margin concessions sales boost that goes into their pocket directly.

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Wait what is this movie pass surcharge bs? I’m cancelling MP at the end of July as I’m heading back to school but I haven’t gotten an email about a surcharge or anything and I’m confused as to how that works/where you guys got that info from....

 

Nevermind just saw MP bull shit email that I got over the weekend. 

Edited by Nova
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Haven't chimed in on this topic in a while, but the simple fact that some of us have been stating is in fact a simple fact:  MoviePass's business model was unsustainable.  The only open questions were:

 

Could they get bought out before the bottom fell out?

Just when would they shutter their doors?

Could they slowly change their business model from "massively hemorrhaging funds" to "slowly leaking blood" without their customers revolting?

 

Has MP imploded yet?  Nope.  Takes a while to burn through money, and if investors are stubborn enough, the trough can be keep getting filled.

 

But a business model where a company literally loses money with every sale unless you don't use it for a month... Well, just be glad that those of you who massively made out did so while the getting was going good.

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As for AMC... My nearest AMC is 60 miles away and I have the choice of 20+ other theaters within a 20 mile radius of Sacramento.  

 

Yeah, thinking I won't be taking AMC up on their offer anytime soon. :lol:

 

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