Cinemark’s new subscription service – Movieclub – is a good start, however bolder steps are required. Theater owner/ operators must take a bold, creative approach toward mitigating the risk associated with the global mega-trend that is in-home viewing. Listen to our recent CEORater Podcast on the subject:
Movieclub subscription service details:
– $8.99 per month;
– One 2D movie per month per subscriber;
– Unused tickets roll over and never expire;
– Members may share unused allocations with other members and non-members;
– No online fees;
– Additional tickets may be purchased at member price of $8.99;
– 20% discount on concessions
Our advice to theater owners: make the necessary capital investment and partner with movie studios and technology companies to offer premium services such as Augmented Reality (“AR”) and Virtual Reality (“VR”) in-theater experiences.
– Average ticket price for a Friday/Saturday night 2D movie = $11. Therefore Movieclub subscription is approximately an 18% discount per ticket (before the 20% concession discount);
– A Net Positive for Cinemark in that this offering will increase Cinemark’s revenue visibility, albeit at discounted prices.