This summer, MoviePass changed how people go to the movies. Instead, the Movie Club has subscribers pay a monthly fee of $8.99 and in return customers can see one regular 2D movie a month (with additional tickets costing $8.99) and receive a 20 percent discount at the concession stand.
Customers can see one movie per day at any theater in the U.S.
If customers don't use their ticket in a given month, it rolls over and doesn't expire as long as the membership is active.
Cinemark owns almost 350 theaters in the US, including 15 in Utah. MoviePass has attempted to crack that code with mixed results and now Cinemark is attempting their own brand of monthly offering. Although MoviePass appeals to individuals who head to several movies a month, the Cinemark service targets less frequent users. Cinemark's new Movie Club service isn't as generous on the quantity side as MoviePass, though it seems more sustainable; it's $8.99 for one 2D film ticket a month at the chain's 350 USA theaters.
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The company's 20-Day Simple Moving Average is measured to be -3.32% with its 200-Day Simple Moving average wandering at 5.65%. The S&P 500 information technology index.SPLRCT barely rose overnight as it gave up much of the 1.4 percent intraday gains.
With Cinemark if you pay $8.99 a month you can get 1 free movie ticket and 20% discount on food and drinks. MoviePass' deal for subscribers is incredible-and its long-term business model can seem equally hard to believe.
Whatever the case, it's likely that the company's already starting to push the movie theater sector toward different business models. Through its Movie Club, Cinemark is testing out a solution to empty seats that may prove more lasting. He noted that "most consumers wanted the ability to stockpile discounted tickets", according to CNNMoney.
"We are thrilled to launch our proprietary movie membership program that is completely consumer research-driven", Cinemark CEO Mark Zoradi said in a press release. At a time when the movie industry is in crisis-when the overall box office gross in 2017 now sits at $9.855 billion, down considerably from 2016's $11.375 billion, and endless streaming services tempt consumers to watch at home-any service that gets more people to theaters is a boon for the industry.