Cinemark Introduces Once-a-Month Movie Pass for $8.99
(Bloomberg) -- Cinemark Holdings Inc., the third-biggest U.S. cinema chain, became the first major exhibitor to offer a subscription service, responding to the challenge thrown down by ticket discounter MoviePass.
The $8.99-a-month Movie Club lets customers have one 2-D ticket a month, plus a 20 percent discount on popcorn and other concessions, according to a statement from the Plano, Texas-based exhibitor, which has almost 6,000 screens.
Cinemark, like other exhibitors, is trying to respond to shrinking ticket sales, while also contending with the challenge from MoviePass, a money-losing startup offering deeply discounted tickets. Cinemark said last month that it was testing a service to boost attendance and revenue.
MoviePass backer Helios & Matheson Analytics Inc. fell as much as 11 percent to $10.71 in early trading.
U.S. ticket prices averaged $8.93 in the third quarter this year, according to the National Association of Theatre Owners.
The company isn't trying to match MoviePass's all-you-can-watch $9.95 monthly plan. It's offering customers reserve seats, waiving online fees and allowing members to roll over unused admissions. Subscribers can buy additional tickets at the $8.99 price. Movie Club members will have to pay more for premium-format screenings.
Theater stocks have tumbled after a dismal summer of movie flops. Investors have also been spooked by reports that Hollywood studios want to release films for home video sooner, cutting the exclusive window theaters enjoy. Cinemark is down 5.1 percent this year.
AMC Entertainment Holdings Inc., the largest exhibitor, has also suggested it might pursue a subscription service. Regal Entertainment Group, which is in talks to be taken over by U.K. based rival Cineworld Group Plc, is testing demand-based pricing.Â
Movie Club begins Tuesday in U.S. Cinemark theaters. The chain has 533 locations in the U.S and South America.
To contact the reporter on this story: Anousha Sakoui in Los Angeles at asakoui@bloomberg.net.
To contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, Rob Golum, Bruce Rule
©2017 Bloomberg L.P.
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.
-
Wrong Labels, High Pesticide Residues Holding Back Agri Exports | The Reason Why
India needs stronger domestic food-safety and labelling standards, with best practices becoming part of everyday business for farmers, traders and food companies.
