Well folks – I was a little slow on the uptake of this one, but it is now totally clear to me that surge pricing is the ultimate weapon that is going to destroy AMC, and totally liberate Moviepass partner theater’s from decades of uniformed pricing forced on Theater owners from Hollyweird studios and distributors.
MP now has the ability to punish AMC and other hostile theaters any time it sees fit. As a simple example, MP can charge $5 bucks extra anytime someone goes to AMC for a movie like The Incredibles (or any other film), while at the same time charge no extra for partner theaters. MP can now start to heavily influence what theaters customers go to, without having to block any theaters in a heavy handed way. Brilliant!
Moviepass can also make deals with Hollweird studios to remove a surcharge. So if a studio wants a bigger opening night, they can now pay MP for the privilege!
Even better, MP can determine if there will be any surcharge for their own films from MP ventures. More options!
Theaters who partner with Moviepass have a LOT to gain here. If they play along, Moviepass can move traffic to partner theaters at their most profitable points in a film’s lifecycle. Theaters keep way more revenue later in the lifecycle of the film. See the uniformed price post.
ONLY Moviepass can make this move. Theaters can’t do this because they fear studios could bring on the nuclear option. What’s that? That is when a studio refuses to sell a film to a theater chain. Which BTW is totally legal. The theaters have been under this threat for decades with almost zero leverage. Moviepass changes all of this. There is nothing Studios can do to stop Moviepass from doing demand based pricing. This is why distributors have been trashing MP along with that idiot Aron from AMC. The distributors knew all along this could happen, and it kills their insane business practices.
All of this is great for MP subscribers. MP can now fight back against the studios for better pricing on big event films. They can democratize going to the movies just like how Southwest Airlines did for flying. This also helps smaller indie films as they can now better fill seats to movies that may have less demand. Essentially MP is smoothing out the demand curve, and creating much more efficient use of a theater’s capital investment.
More Butts in seats at the theaters saves consumers money and makes partner theaters more money. Surge pricing makes this happen!
AMC gets totally burned on this. They are on an island. The studios are already furious at AMC for their subscription plan, and AMC can’t match what MP is doing. MP has no ties to the studios and can operate freely in the best interest of their people. AMC is like N Korea now, on their own, forced to screw over their own population. Horribly in debt, closed off from the new world, no way to feed their people. It’s a terrible strategy for them. AMC will soon start losing the MP lift, the heavy AMC users will join the new AMC program. Which is great for MP and terrible for AMC. Honestly, I don’t know how AMC could have done this any worse for themselves.
Get your popcorn and sit back and watch. David has thrown the rock, Goliath is about to fall!