It looks like MoviePass definitely changed the way the film industry does business, but perhaps not in the way they originally hoped.
According to a new report from Deadline, the subscription service has caused studios and theater chains to take notice, but instead of playing ball with the upstart company, they may just cut out the middleman altogether. The report claims that theater chains may start their own subscription services, similar to the MoviePass model, but this time with the help of the studios.
“Whatever MoviePass is doing, can be accomplished without them,” said an anonymous theater chain executive in the report. This idea of cutting out MoviePass altogether is yet another issue for the subscription service, which has come under fire in recent weeks. After financial documents were released, an independent auditor shared some doubts about the service’s long-term future.
READ MORE: Studio Executive Calls MoviePass A “Cancer On The Industry”
However, no matter if MoviePass lives or dies, the damage is done. Customers are enjoying the subscription model, and theater chains, with the help of studios, will have to adapt.
Unfortunately for MoviePass, according to the report, the theater chains’ best way of moving forward is without third-party interference. Deadline states, “Our sources say that by having a third party between the two would force each side to give up a portion of their box office returns.” So, the easiest way to get rid of that extra cost is to get rid of the third-party. So, bye-bye, MoviePass.
However, that doesn’t mean that the theaters and the studios can easily strike a deal on their own. Even without a third-party, it appears that for a subscription model to work, both the theaters and studios will have to take a little less money from ticket sales.
The film studios don’t want to budge because they don’t see a subscription model leading to a spike in attendance, given that films like “Avengers: Infinity War” and “Jurassic World 2” will have monster box office numbers with or without MoviePass. However, the theater chains see the influx of MoviePass customers and realize that the service is changing how customers view going to the movies by devaluing the ticket cost to a monthly fee.
In fact, according to Deadline, AMC had a plan for a subscription service but it was shot down by studios last fall, due to AMC asking the studios to cut a bit of their share of ticket sales. This could explain why AMC isn’t willing to work out a deal with MoviePass right now, as they’re still working on their own service.
One thing is for sure, if these theater chains introduce their own subscription services, they’ll inevitably cost more than the $9.95 that MoviePass currently charges. According to the report, an anonymous distribution executive said the $10 per month model just won’t cut it.
