In 2018, MoviePass made a huge bet in the viability of an affordable subscription model in the movie theater industry by introducing the ability to subscribe for unlimited movie tickets for $9.95 per month. At first the business was booming and consumers quickly adopted the model, but the profitability of the business quickly came into question. Soon after consumer flocked toward MoviePass, the business began to change their pricing and product strategy to attempt to attain and sustain profitability. The product was no longer unlimited. A limit to which movies you could select from was enacted. And MoviePass quickly began to lose customers.
As we move into 2019, MoviePass has continued to tweak its model to capture and cater to consumers in a profitable manner. According to an article on Mashable, MoviePass is moving back toward its unlimited plan, but now offers a stratified pricing and product strategy to cater to multiple consumer segments. From a value-based "Select" plan, to the unlimited "Red Carpet" plan, consumers can now choose which product suits them best.
As I look at what MoviePass has been able to achieve, it's impressive that a technology start-up was able to penetrate such an established industry - all through the digital space. While their business model hasn't been fleshed out, I believe that MoviePass was able to find a need in the marketplace, and has found ways to provide a product to fill that need. As MoviePass moves forward, their biggest challenge will be to continue to find ways to acquire new customers, while maintaining their customer base.
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