Now that AMC has launched their own $20/month movie pass subscription service to compete with MoviePass. Eddie Yoon, author and business growth strategist, has a lot to say about MoviePass and AMC’s launch into the same business.
Eddie Yoon is the founder of EDDIEWOULDGROW, LLC a think tank and advisory firm on growth. Prior to this he was a partner at The Cambridge Group, a strategy consulting firm that helps Fortune 500 CEOs drive growth by unlocking consumer demand. His work over the past two decades has driven over $5B of annual profitable growth in consumer packaged goods, durables, robotics and energy.
Eddie is one of the world’s leading experts on finding and monetizing superconsumers to grow and even create new categories. He is the author of the acclaimed book, Superconsumers: A Simple, Speedy, and Sustainable Path to Superior Growth, published by Harvard Business School Press. Superconsumers is licensed in English audio and, in addition to English, has been translated and sold in four languages, simplified Chinese, Czech, Russian, and Ukrainian, around the world.
T2C had a chance to talk to this man who seems to know the score.
T2C:How is AMC different from Movie Pass?
Eddie Yoon:Frequency, AMC’s is only restricted to AMC theatres and there is a price difference. AMC offers reserved seating and should be offering a discount on concessions. Fox is getting into the hen house so to speak. You will most likely be seeing all the movie theatres getting into this business. Movie Pass owners are paying full price for their costumers banking upon getting your commercial foot print.
T2C:$20 a month pass what does that include?
Eddie Yoon:Three movies a week. AMC Stubs A-List members will also reap such upsides as free upgrades on concessions, express box office and concession service, no online ticketing fees and 100 points for every $1 spent for the AMC Stubs A-List monthly fee and food and beverage spending at the theater chain. AMC Stubs Premiere members receive a $5 reward for every 5,000 points earned, which translates to a 10% credit toward future AMC purchases.
T2C:Why $20 for 3 movies a week from the $9.95 which is on ticket a day?
Eddie Yoon:A-List members don’t have to buy their tickets at the last minute which is the case with MoviePass, rather they can purchase well in advance. A-Listers can snap up tickets for any format (IMAX at AMC, Dolby Cinema at AMC, RealD 3D, Prime at AMC and BigD), something MoviePass doesn’t allow. Reservations for A-List members can be made on AMCTheatres.com web site, or on the AMC Theatres smartphone app. For quite some time, MoviePass’ 3 million subscribers have weathered a slew of technical snafus, from the app glitching to being informed they’ve violated their Byzantine terms of service. No problems here with AMC’s A-List since it connects directly with the chain’s internal point-of-sales system. Also all three movies can be enjoyed on the same day with a two-hour buffer in between each showtime. And an individual is allowed to re-watch the same movie. The A-List subscription program works for both new releases as well as holdovers, studio or indie titles.
T2C:Do you think this is the wave of the future?
Eddie Yoon: Yes, because you have things like Netflick and other channels so they have to get you out of the comfort of your own home. I think you will see more offers to make your life as comfortable as possible in a movie theatre.
MoviePass has built their money-losing business on monthly memberships for unlimited movies. MoviePass looks unsustainable and is losing $40 million a month, and those loses are expected to increase. Movie theaters don’t actually make money off movie ticket sales, but concession sales. AMC is banking on customers spending more on concessions because they will feel as if the movie tickets were free. MoviePass doesn’t capture any revenue from concession sales, so they miss out on that revenue stream. MoviePass has a business plan that seems to make no sense, AMC Theatres appears to have a model that can easily succeed.