Yesterday we told you that AMC (the largest theater chain in America) will be releasing their own subscription plan to rival MoviePass. You’ll pay $19.95 to watch up to 12 movies a month, including IMAX and 3D showings.
As you all know with MoviePass, you pay $9.95 a month to watch a movie every single day, but you can’t watch IMAX or 3D showings. You can read more about the differences by clicking on this link.
Now, just one day after AMC announced their service, MoviePass is trying to change their business model to avoid going under. According to Business Insider, MoviePass will introduce ‘surge pricing’ next month.
“‘At certain times for certain films — on opening weekend — there could be an additional charge for films,’ [MoviePass CEO Mitch] Lowe told Business Insider. So don’t be surprised if for that next Marvel movie, you will have to pay a couple dollars more. Lowe said this decision was a way to have its theaters partners see more traffic for big blockbusters in the mid-week and less-crowded weekends following the movie’s opening weekend. It was also to ‘make sure that we can continue to offer a valuable service and support the whole enterprise,’ Lowe added.”
So how much extra will you have to pay? The articles says the upcharge on popular titles during peak hours will be “$2 to higher,” which is basically like saying it could cost you an unlimited amount of money.
I mean, this makes zero sense. They’re trying to take a page from apps like Uber, Lyft and Postmates, but their business model is completely different. You’re not paying those apps monthly. It’s a one time charge when you need it.
MoviePass customers are already paying $9.95 a month! And when they signed up for the service, they were promised they could watch one movie every single day.
Now, that’s no longer promised. You might walk inside a theater on a Friday night and be charged an extra $5…or $10, who knows how high it’ll go. And how exactly are they going to charge you? Will the theater let you know before making the purchase, and you simply pay the difference? Or will you not find out ’til you see some random $10 charge on your bank account?
Seems shady to me, and I can see this creating a lot of confusion. MoviePass already has a huge customer service problem. I can only imagine them trying to deal with all the angry customers come next month.[mashshare]