MoviePass, the startup that is now subsidizing the moviegoing habits of 1.5 million subscribers, is shopping for movies to call its very own.
Variety reports that MoviePass, a subsidiary of Helios and Matheson Analytics, is creating a subsidiary, MoviePass Ventures, to acquire films in conjunction with distributors, and is on the lookout at the Sundance Film Festival. In a statement, MoviePass CEO Mitch Lowe said that the move was in part so that MoviePass could share in the sizeable uptick in moviegoing that it is helping generate.
MoviePass subscribers can see one film a day in almost any U.S. theater, for a fee that dropped to just $9.95 in August of last year. On the face of it, that’s a money-losing proposition, since MoviePass currently pays full price for all of its customers’ tickets. The company says it will eventually turn a profit through various strategies including leveraging user data.
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Dropping its monthly fee generated a massive surge in interest and subscribers, and MoviePass makes the eye-opening claim that it is now purchasing about 3% of all the movie tickets sold in the U.S. That alone is stunning: if you conservatively estimate that …read more
Source:: Fortune.com – Tech