Startup will let film fans see a movie a day in cinema for just $10 a month
As cinemas struggle with tepid sales, Mitch Lowe has an extreme proposal for how to get more people into seats: Let them come to all the showings they want for about the price of a single ticket each month.
Lowe, an early Netflix executive who now runs a startup called MoviePass, plans to drop the price of the company's movie ticket subscriptions to $9.95.
The fee will let customers get in to one showing every day at any US cinema that accepts debit cards.
MoviePass will pay cinemas the full price of each ticket used by subscribers, excluding 3D or Imax screens.
MoviePass could lose a lot of money subsidizing people's movie habits, so the company also raised cash on Tuesday by selling a majority stake to Helios and Matheson Analytics, a small, publicly-traded data firm in New York.
The companies said MoviePass intends to hold an initial public offering by March. (Bloomberg)