A business model means a multi-step plan for the company that is aimed to ensure stable growth and ultimate profits. The strategy of applying the business model is appropriate for the case of MoviePass. In its structure, there should be several integral principles and values: advertisement, network effect, flat-rate pricing, and close contact with theaters and banks.
This brief outlook of key elements is not a coherent business strategy. For the construction of a business strategy, there should be analysis by many groups, including business analysts, economists, and board members.
The key strength of this model is that it is quite innovative in the field. Although the subscription model is quite popular among film and music streaming services, there was no popular platform for theaters.
This fact can attract many users, especially those who are accustomed to the purchases of different subscriptions. Another strength of the business model is that it allows consideration entering the global market. Famous subscription services are global, so people from any point in the world can enjoy the content of these platforms.
In the case of MoviePass, such kind of spread is difficult because of the language barriers and different business environments. It is evident that the same business model will work the same in poor countries or countries with a difficult history.
Concerning weaknesses, the major weakness is the overreliance on the conviction that the visits to theaters will decrease and achieve the point that will be beneficial for the platform owners. The cost of a subscription is slightly higher than the average cost of a ticket.
Thus, it means that the platform needs a high number of casual moviegoers who attend the cinema approximately once a month. In reality, it may not work like that and cause the fast failure of the company. Another weakness of this business strategy is that in 2022 people will mostly use streaming services rather than go to cinemas.
Despite the fact that visit of cinemas is a good way to spend time with friends, many people prefer staying at home and watching Netflix or Apple+. To overcome these difficulties, MoviePass needs to balance the promotion of the idea that visiting of cinema is not an outdated form of spending time with the desire to save a big share of casual moviegoers in the user list.