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Netflix cofounder's MoviePass will now let you see one movie per day in theaters for just $10 a month

Aug 15, 2017, 19:30 IST

Business Insider

Netflix cofounder Mitch Lowe has a radical new business model for his startup MoviePass.

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For just $10 a month, Lowe's company will allow its subscribers to see up to one movie a day in any U.S. movie theater that accepts debit card payments.

As MoviePass will pay the full price of every ticket sold to theaters, the company faces potentially huge losses, and has secured new funding to accommodate the new subscription plan.

The startup announced Tuesday that it had sold a majority stake to big data firm Helios and Matheson Analytics in order to promote a nationwide rollout of its new low, flat-rate service.

"MoviePass was founded to make it easier for passionate moviegoers and casual fans to see films the way they're meant to be seen - in the theater," Lowe said in a statement. "Our vision has always been to make the moviegoing experience more affordable and enjoyable for our subscribers. We are changing the way consumers think about going to the movies by making it possible to experience a broader array of films - from the latest summer blockbuster to a critically-acclaimed documentary - through a subscription model."

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For Helio and Matheson's CEO Ted Farnsworth, the goal of its financing MoviePass is to eventually collect data on viewing behaviors from a large base of moviegoers. Farnsworth told Bloomberg that the startup will be able to target ads and market to its subscribers in a manner "no different than Facebook or Google."

MoviePass was founded in 2011 as a $30 per month membership. Mitch Lowe took over the company in 2016, and its service is currently available in 91% of movie theaters across the country.

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