One of the nation’s largest theater chains is getting into the subscription business, in a direct response to MoviePass. The Los Angeles Times reports that Cinemark, the country’s third-largest theater chain, announced a plan to charge consumers $8.99 a month in exchange for one movie ticket per month along with the ability to buy additional tickets for $8.99 each.
Subscribers will also get a 20% discount on concessions.
The Plano, Texas-based company’s subscription plan, dubbed Movie Club, is “the cinema industry’s first direct answer to MoviePass, a New York start-up that offers unlimited movies in theaters for $9.95 a month,” The Times reports.
The move also represents the latest effort to bring customers back to theaters at a time when theaters have been hit hard by competition from Netflix and other streaming services.
“Theater chains have long resisted discounting tickets, fearing that doing so would erode profits,” The Times reports. “But long-term pressures on the industry have prompted some exhibitors to rethink their opposition.”
If the theater companies want more customers they need to start by working with the studios on release dates. Thor, Justice League and Star Wars in a 6 week period is not a good strategy for the theaters. If one of these had been dropped a the end of September it would have increased the take for September and October. Instead Justice League has a weak opening and gross because it is squeezed and the theaters have little traffic in September and October.