How MoviePass Disrupted the Entire Movie Theater Industry and Innovation Is Key to Business Success
The world is changing and it’s changing fast.
In 2017, an entire industry was disrupted by a $9.99 MoviePass card. The company, run by Netflix co-founder and former Redbox president Mitch Lowe, wanted to be a major disrupter in the industry and he was. The idea was innovative and the Movie Theatre industry had never gone through a digital transformation.
MoviePass was a disruptive company and moviegoers no longer had to spend $15-$20 per ticket to see a movie. They were lured by the idea of seeing an unlimited number of movies for a flat fee. Although for a number of reasons, MoviePass saw its demise the major theatres adopted passes of their own and chose to keep innovating.
AMC Theatres adopted a similar model limiting the number of movies to3 per week including IMAX® and Dolby Cinema.
Cinemark's movie club model is good for one 2D adult ticket—any movie, any time. Unused credits roll over and never expire when you’re a member.
Although MoviePass disrupted the movie theatre industry, the industry quickly strategized and adopted a new way of thinking. They focused on a clear set of objectives and shifted their business model to include benefits like AMC Stubs Premiere™. A-Listers could enjoy 10% back on food and drink purchases, free size upgrades on popcorn and fountain drinks and priority lanes at the box office and concessions. MoviePass was riddled with restrictions and blackouts and there were no additional benefits added to the memberships.
Successful digital transformations are well defined and while MoviePass had a disruptive idea, they had no added benefits to keep customers loyal. Many moviegoers choose their theatres based on proximity, comfort, and price. Well, the price was no longer an issue and based on proximity, many moviegoers establish loyalty because of the added benefits such as points and free size upgrades on concessions.
Digital transformation requires organizations and leadership to establish new ways to measure outcomes and understand the progress — or lack of it — the organization is making. The next disruption is on the horizon with the adoption of movie theatres introducing pro football on the big screens. AMC is bringing its customers a new way to watch Sunday football in stunning detail and the best part? It's free.
"Score your seat at no charge with the purchase of $10 Prepaid Event Food & Beverage on our site, our app, or with a crew member at the theatre. If you’re not an AMC Stubs member, join now!"
In the new digital world, organizations need to be able to seize opportunities in a rapidly changing business environment while responding to the needs of their technology-empowers customers and acting quickly to successfully implement digital transformation strategies Business agility is the new definition of success.
No matter what, MoviePass made an indelible mark and because of their disruption, the movie theatre industry will never be the same.
Is your company ready for a digital transformation? Do you have a digital transformation strategy in place?
