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This topic comprises 5 pages: 1 2 3 4 5
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Author
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Topic: AMC Joins The Subscription Service Wars
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Jonathan M. Crist
Jedi Master Film Handler
Posts: 531
From: Hershey, PA, USA
Registered: Apr 2000
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posted 06-21-2018 01:01 AM
AMC Theatres on Wednesday unveiled AMC Stubs A-List, a $19.95 a month ticket service that allows members of its loyalty program AMC Stubs to see up to three movies per week. The program kicks off next Tuesday, when members can enroll online and start using the service immediately.
AMC Stubs A-List is so far the biggest competitor to other rival subscription services like MoviePass, which limits its subscribers to one 2D movie a day and each unique movie can be viewed only one time. AMC has upped the ante by allowing its subscribers to watch any movie at its theaters at any available showtime and in any format, including IMAX and 3D. A-List also allows moviegoers to book tickets in advance, a feature that is not available with MoviePass.
AMC said it will continue to accept MoviePass at all of its locations.
MoviePass has made headlines in the last year for disrupting the movie theater experience at a time of uneven attendance at movie theaters.
The service has bumped heads with traditional theaters, including AMC, which at one point even pulled its program from certain locations. CNNMoney reported in May that MoviePass' parent company, Helios and Matheson Analytics, burns through approximately $21.7 million each month to keep MoviePass in operation.
Helios and Matheson Analytics issued a warning about the company's ability to stay in business in a regulatory filing in April.
AMC has now swooped in with its own plan to court moviegoers. AMC Theatres CEO and president Adam Aron used the opportunity to take a jab at its popular competitor in his own statement on Wednesday.
"We believe that our current and future loyal guests will be interested in this type of program, as AMC Stubs A-List rewards guests with something that no one else offers: the very best of AMC, including IMAX, Dolby Cinema and RealD 3D up to 3 times per week, for one simple, sustainable price," Aron said.
MoviePass responded on its Twitter account on Wednesday.
"Heard AMC Theaters jumped on board the movie subscription train. Twice the price for 1/4 the theater network and 60% fewer movies. Thanks for making us look good AMC!" the tweet read. "AMC has repeatedly disparaged our model as a way to discourage our growth because all along they wanted to launch their own, more expensive plan. We want to make movies more accessible, they want more profit."
AMC has repeatedly disparaged our model as a way to discourage our growth because all along they wanted to launch their own, more expensive plan. We want to make movies more accessible, they want more profit.
AMC STUB PLAN
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Jack Ondracek
Film God
Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002
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posted 06-21-2018 08:24 AM
As I understand the differences:
AMC allows access to all formats of the shows they run. Movie pass only allows 2D.
3 movies per week VS 7 wouldn't be a deal-breaker. It's well within my personal habits. Access to (avg) 13 shows of my choice per month VS a controlled list of 30 or 31 in a specific format doesn't put MP ahead of the game for me.
I don't believe AMC limits viewing to one-time-only, as MP now does. They also allow multiple shows per day, if separated by 2 hours.
AMC controls terms of service, potentially making their program more stable than MP, which often changes their terms, seemingly to make it harder to use the service.
AMC doesn't require its members to take pictures of their tickets, then hope the app actually sends in the picture, in order to avoid disruption of service.
I'm not a user, but I understand AMC's app is more stable than MP, doesn't require GPS-validated check-in and doesn't require newer-model phones in order to work.
If AMC actually has responsive customer service, that would just about rationalize the added cost by itself.
Discounts on concessions would be a nice touch, though I haven't heard what that actually means. AMC gets to control this, and tailor it to (somehow) attract people to their snack bars. As for Movie Pass, I can't see a scenario where any major exhibitor will ever let them into their revenue stream. Their subscribers will continue to get no discount, though the exhibitors I've seen report on this say that MP subs' concessions patronage is extremely low, by comparison.
I can see a rewards / loyalty program being about more than price. From what I've read about the aggravation of using Movie Pass, I would definitely consider AMC's model, and the additional $10 wouldn't put me off at all. One or two trips to an average show would easily cover the cost. Everything beyond that is bonus.
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Jack Ondracek
Film God
Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002
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posted 06-21-2018 12:11 PM
While it's certainly possible that AMC could strike individual deals with the studios on this, that would infer that the studios were willing to eat part of AMC's promotion. In 35+ years of theatre ownership, that's something I've never seen. So it's possible, but in my world... not likely.
Studio contracts state that you, as the exhibitor, can charge whatever you want for a ticket. However, the studios reserve the right to set a minimum rent per-customer. Charge under that figure and you'll make up the difference from your concessions or, if you're a multiplex, maybe what's left from one of your other movies. If you charge more, as is expected, you keep what's left after you pay the negotiated percentage.
The contracts also state that you aren't prevented from charging different prices for essentially the same ticket. What you're suggesting under this scenario falls under this rule. The catch is that you have to pay percentages on the highest-priced ticket in that class. So if you customarily charge $10 to me, but you give someone else a discounted $8 ticket, you're obligated by contract to pay percentages as if both tickets were $10. That sort of blows any inclination to sell discounted blocks of tickets to an outfit like Movie Pass.
When you get your ticket under their program, AMC is (should be) paying out a percentage to the relevant studio as if you had just bought a full-priced matinee or evening ticket. So they're not eating the full price, just the rental to the studio.
Granted, Movie Pass pays for the full-priced ticket instead of the customer, which is fine, except for all of the baggage that comes along with the program.
Oh... BTW... My wife just pointed out that the 2-hour wait between ticket purchases under the AMC program starts from the beginning of the show you purchased first... not the end.
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Jack Ondracek
Film God
Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002
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posted 06-21-2018 06:06 PM
This describes the current comparison fairly well:
https://www.hollywoodreporter.com/news/amcs-rival-moviepass-program-dissected-1122016
As MoviePass struggles to stay afloat, mega-theater circuit AMC has upped the ante by offering its own ticket subscription service in the U.S. that will allow patrons to see up to three movies a week in any format — including Imax — for $19.95 a month.
AMC's groundbreaking program, called "AMC Stubs A-List," launches on June 26. If it works, other theater chains are likely to follow suit in earnest as the film industry struggles to stem declining attendance. AMC is the largest theater circuit in both the U.S. and the world. Cinemark, the third-largest chain in the U.S., also offers a subscription program, but it's far less ambitious.
In response to AMC's move, MoviePass quickly tweeted that AMC was copying its model.
In fact, though, rather than copying MoviePass, AMC is borrowing its approach from subscription services that have been offered by major chains in Europe for more than two years, particularly in the U.K., where AMC operates Odeon.
"In Europe, people who use these services go to the movies twice as much," says Wall Street analyst Eric Handler of MKM Partners. "And while you might be paying more for AMC's service than for MoviePass, you are getting a lot more flexibility,"
Adds RBC Capital Markets analyst Leo Kulp, "We see AMC's subscription plan as an innovative way to try to increase attendance. While we don't necessarily see this competing with MoviePass — we see AMC's plan as a premium offering — it could benefit from any disruptions at MoviePass."
Below are the highlights of the movie subscription services in the U.S. Keep in mind that while the average movie ticket price was $8.97 in 2017, the cost of going to the movies is notably higher in major hubs like New York City and Los Angeles.
AMC A-List
The program officially launches June 26.
Members can see up to three titles a week, and can even see all three in one day. And members can also watch the same film multiple times.
If a member doesn't see all three possible movies in one week, unused "tickets" can't be carried over from week to week.
Members can see a film in any format, including Imax. Generally speaking, the upcharge for an Imax ticket is $4 to $5. And in cities like L.A. or N.Y.C., an Imax ticket can cost upwards of $21.
"I think the allure of this particular program is that you can see premium cinema," Imax chairman-CEO Rich Gelfond tells The Hollywood Reporter.
A-List members can also buy a ticket online and reserve a seat at no added charge.
Free concession upgrades.
There's a three-month minimum to join.
Those who sign up for a year can lock in the price of $19.95.
MoviePass
MoviePass costs less than A-List. For $9.95 a month, MoviePass patrons can see one movie a day. However, there are major caveats.
MoviePass hasn't allowed its customers to see a film in premium formats, such as Imax, but today MoviePass chief Mitch Lowe announced that members will be able to pay an upcharge of $2-$6 to see a film in a premium option.
MoviePass chief Mitch Lowe said Thursday that MoviePass will soon implement a $2 surcharge for a high-demand title, most likely on opening weekend. The program also intends to begin offering access to premium formats by the end of summer. However, unlike AMC, MoviePass customers will have to pay an added fee of $2 to $6.
MoviePass also intends to introduce an "add a friend" option.
MoviePass members can't see the same film twice.
MoviePass is only good for same-day tickets.
Cinemark Movie Club
For $8.99 a month, members get one free regular movie ticket per month.
Unused tickets will roll over.
Members get 20 percent off of concessions.
Online fees are waived.
A member can buy a second ticket for $8.99.
Sinemia
The company offers various yearly packages, ranging from one movie ticket per month for $4.99 to three movie tickets per month for $14.99.
Members can see a film in any format.
Tickets can be reserved in advance.
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Mike Blakesley
Film God
Posts: 12767
From: Forsyth, Montana
Registered: Jun 99
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posted 06-21-2018 11:01 PM
quote: Jack Ondracek
MoviePass chief Mitch Lowe said Thursday that MoviePass will soon implement a $2 surcharge for a high-demand title, most likely on opening weekend.
Oh, THAT'S gonna go over well.
So, doing the math on the AMC thing. If you can see 3 movies a week, that's 12 a month, for 19.99, or $1.66 per movie. Most people won't go that often, but even if you only see ONE movie a week, that's five bucks for a movie. Pretty darn cheap.
My question (as mentioned above) is what AMC is paying the studios. If they're being allowed to fudge the ticket price based on their actual income from the subscriptions, then they're gonna open up a can of worms like nobody's ever seen.
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Mike Blakesley
Film God
Posts: 12767
From: Forsyth, Montana
Registered: Jun 99
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posted 06-22-2018 04:56 PM
So, if it's an $11 movie ticket and typical film rental is 55%, they're paying $6.05 to the studio. If a user goes to one movie a week (which is not outrageous), 6.05 x 4 = 24.20.
They're going to sell those four tickets for $19.95? And then offer concession discounts besides, apparently.
If a user goes to more than one movie a week (also not outrageous), they'll lose even more..... "IF" they're paying full bore to the studios, which maybe they aren't, according to this excerpt from a Wall Street Journal article, which I can't link to because it won't let me read the whole thing:
quote:
Hollywood studios may seek changes to a new MoviePass rival because of concerns about how the service determines their cut of the sales, according to people with knowledge of their thinking.
The subscription service, announced earlier this week by AMC Entertainment Holdings Inc., the nation’s largest cinema chain, would calculate studios’ share of ticket sales based on a price that is lower than they actually cost in most major cities—and lower even than the average charged nationwide by AMC.
I fear we are all going to regret that this whole subscription thing ever left the starting gate.
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