MoviePass has now passed one million subscribers in the US after introducing its controversial $9.95-a-month (£7.70/€8.50) cinema pass in August.
Subscriptions have increased more than 65-fold since the low-cost plan was launched after MoviePass was acquired by big data and tech firm Helios and Matheson.
As MoviePass pays full price for cinema tickets from cinema owners, which is around $15 each in some cases, the firm is losing money with every sale it makes.
However, the firm reportedly plans to earn its money through selling ads and possibly negotiating a cut of concessions from theatres, Bloomberg news reports.
In September, after MoviePass reached 400,000 subscribers in 30 days, the company projected that it would acquire at least 2.5 million additional paying subscribers during the next 12 months, and expects to retain at least 2.1 million of those additional paying subscribers at the end of that period.
MoviePass had fewer than 20,000 subscribers on August 14, but the operator said the “viral subscriber growth” is due in part by the “innovative and disruptive technology MoviePass and Helios & Matheson offer in combination with massive interest for the new $9.95 per month subscription plan”.
The service has certainly shaken up the industry, with the cheap cinema experience being duplicated by the Cinemark Holdings chain. The firm, responding to MoviePass’s threat, began offering $8.99-a-month passes earlier this month for subscribers to see one film a month.
The Cinemark Movie Club membership provides moviegoers with one 2-D film ticket each month with premium format ticket upgrades available, as well as allowing any unused tickets to roll over into the next month and never expire.
The Movie Club also gives members the ability to reserve seats and buy tickets in advance with no online fees, with additional tickets costing the price of a membership. There is also a 20-per-cent discount on concessions during each visit.
Cinemark said it separates itself from its competitor by appealing to moviegoers who want more flexibility and options with their tickets.
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