The Better Deal: MoviePass vs. AMC Stubs A-List

The movie industry has essentially remained the same throughout decades. Go to your local theater, buy a ticket, and watch the movie while eating snacks. While video streaming services such as Netflix and Amazon Prime Video have infiltrated the market by providing their own content, people still go to theaters to watch the latest releases on a large screen with an effective sound system.

There haven't been any other changes to the film industry... until 2017. A new concept was introduced that focused on the theater experience, as opposed to new quality content. A new order was created that prioritized the customer benefits, as opposed to the pursuit of the customers' money. This revolution was introduced by MoviePass. In August 2017, MoviePass announced a subscription service in which members can watch a movie per day by paying a flat fee of $10 per month. In most states in the U.S, the average ticket price of a movie theater is more than $10, making MoviePass's service appear to be a very appealing opportunity. Most people will get more than their money's worth by watching just one movie in a month. More and more people have flocked to this exceptional offer with the company reporting that they had 3 million subscribers as of June 2018. Due to MoviePass's popularity, other companies are executing this model by offering similar services. For example, AMC recently announced Stubs-A-List, allowing members to watch 3 movies per week for a $20/month cost. But how does this service compete with that of MoviePass?

At first glance, AMC's service appears to be making several tradeoffs. At twice the cost, the service loses the unique allure of watching a movie per day. Clearly, you are getting less from Stubs-A-List, compared to MoviePass. However, it is critical to note that unlike AMC, MoviePass is dependent upon other theaters since it solely provides the tickets, not any content. Considering AMC now possesses a subscription service rivaling MoviePass, AMC may altogether shun MoviePass from working at its theaters. Already, AMC has few locations in which MoviePass is not applicable due to their conflicts over revenues. AMC is by far the largest movie theater chain in the U.S, and rejecting MoviePass users would definitely hurt MoviePass and may rob it of some subscribers.

Another concern for some is that MoviePass doesn't include viewing options in IMAX or 3D. On the other hand, Stubs-A-List has viewing options for any format. While it is possible that MoviePass will address this problem, it is likely that as a result, the fee of the subscription service will rise since matching the value of an IMAX ticket to that of a Standard ticket lacks any reason.

One of the biggest potential concerns regarding MoviePass is its future. The company is losing more money each month as it funds for the tickets that their customers order. Their available cash is drowning, and the company claimed that they only have enough funding for a few more months. MoviePass's parent company, Helios and Matheson Analytics, is at a valuation of $14 million, an all-time low. On the other hand, AMC has a valuation higher than $2 billion and will continue to grow due to viewers gained from MoviePass and the wide number of successful summer blockbusters. MoviePass's exclusive $10 deal may not last long as the company approaches bankruptcy, so AMC's service is definitely a safer choice.

In summary, AMC's Stubs-A-List has its advantages of reliability and security while MoviePass has its advantages of being more economical to the consumer. The decision is dependent upon the personal choice of which benefit is more important.