MoviePass has its value for three distinctive sides: customers, theaters, and movie studios. Concerning customers, in the subscription to MovePass, they will get a value similar to what they have in subscription streaming services like Netflix. Mitch Lowe, the CEO of MoviePass, indicated that “essentially, it’s like Netflix for the movie theater.”
For the relatively low price, customers will get the opportunity to visit their local movie theater every day. The idea of MoviePass’s owners is that after some time, the activity and increased interest in visiting theaters will decrease.
The cinemas also gain value from participation in MoviePass’s system. Firstly, their daily audience will definitely increase. Although it can be a negative change because many moviegoers do not like the big crowds during film screenings, it may contribute to the rise of local and unpopular theaters.
Secondly, besides film tickets, many moviegoers additionally buy popcorn and soft drinks. Shih shows that, by statistics from October 2017, “the $11.4 billion in ticket spend was accompanied by $5–7 billion in concessions spent on things like popcorn and soft drinks.” These additional profits may help theaters modernize and extend their number of films.
Last but not least group that benefits from MoviePass is studios. Film studios are hidden beneficiaries, as they are the most distant actors in the sale and distribution of movie tickets. They increase their Box Office profits and develop market efficiency.
Box Office revenue means the aggregated revenue from the sales of movie tickets. Besides, moviegoers may see more films than previously and find movies of media franchises they like. For example, a chance visit to a movie theater for a Marvel movie might interest a moviegoer in buying tickets for a Marvel movie in the future.