AMC Releases Monthly Subscription Plan

AMC Movie Theater
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AMC is planning on releasing a monthly movie subscription service.

Netflix brought subscription-based movie and television streaming to the people. Spotify and Rhapsody changed the music industry, now AMC is planning on changing your movie going experience.

AMC Theaters, the No. 2 movie chain in the United States behind Regal Entertainment, has agreed to a pilot partnership with MoviePass, a three-year-old company focused on letting people go to the movies once a day for one monthly fee.

movie pass

“It frankly wouldn’t be smart to ignore the success of subscription in other areas of media,” said Christina Sternberg, senior vice president for corporate strategy at AMC, which operates 4,959 movie screens.

In January, AMC theaters in Boston and Denver will begin working with MoviePass to offer monthly subscription packages for $45 and $35.

“The data will determine how fast we go,” Sternberg said. “Sometimes you first expand the test, sometimes you accelerate the deployment.”

MoviePass has been working on a subscription service since 2011. Many people were not thrilled about embracing a subscription alternative and it will cause movie theaters to make less money in comparison to traditional per-ticket pricing. But, with the recent decline in moviegoers, the movie theater industry is looking at different ways to monetize the cinema experience.

The Nielsen Co. said last week that the moviegoing of Americans age 12 to 24 dropped 15 percent in the first nine months of 2014, compared with attendance in the same period a year earlier. Total attendance has declined about 5 percent so far this year compared with last, according to box-office analysts, because of fewer broad-appeal films and about a dozen more modest movies, like “Sex Tape” and “A Million Ways to Die in the West,” that missed the mark. [via]

At the end of the day the movie theater industry is changing and the younger generation is no longer interested in buying overpriced popcorn and soda. With HD-TVs, cell phones, and tablets people are more likely to watch a movie from the comfort of their own home for the fraction of the price then to to go to the theater.

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