MoviePass Introducing Surge Pricing for Popular Films

MoviePass will follow the Uber model of charging "surge pricing" by July, introducing modest fees in an effort for the company to actually turn a profit.

Cinema
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Image via Getty/Craig Barritt

Cinema

MoviePass loses a lot of money, which is what one would expect from a business model that allows you to see a movie per day for $10 a month. If you go to the cinema more than once per four-five weeks you're already coming out on top. Some day MoviePass will probably churn out a profit, they just need to fine tune their approach.

In a related note, MoviePass seems to be fine-tuning their approach, as they unveiled a set of new features for their members that will (theoretically) help them operate in the black. As pointed out by Business Insider, some of these are beneficial features, like an option to pay a few more bucks to see Real 3D and IMAX movies, or the ability to buy tickets for non-member friends. Both of those options will be available by August.

However, Business Insider also reported that CEO Mitch Lowe stated that the company will follow the Uber model of charging "surge pricing" for more popular movies. This will be implemented by July.

The pricing would work by charging a modest bump (see: $2 to "higher") for flicks deemed popular with the service's subscribers. "At certain times for certain films—on opening weekend—there could be an additional charge for films," is how Lowe put it.

If things work out as planned, this would help theaters thin out weekend crowds while also giving them bigger draws in the middle of the week. Lowe added that this pricing will not apply to those who are on the annual MoviePass payment plan. As is the case with most price increases, there may be some blowback, but (again) you're already coming out ahead if you see two movies in a month.

Oh, and also not to point out the obvious or anything, but they're not going to operate at a reported $20-40 million per month loss forever.

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