Messing Up Moviepass

Do you have MoviePass? I do and I think it’s fabulous. For roughly $10 a month (about the cost of a ticket here) you can go see one movie a day as long as they’re not IMAX or 3D. Too good to be true? It really seems that way but I’ve never had an issue using it.

You might be asking yourself how do they stay in business? Lots of other folks are asking the same question since I gather they have to pay the theater the full price of admission when you use the pass. I go to an average of one movie a week (4/month) which I gather from this article on Recode is more than average. They’re recently starting charging a premium if you want to see a very popular movie right as it’s released, but that’s a minority of what’s out there. Still, they must be losing money on most users so how do they stay in business?

In a word, data. I go to see some movies in the theater that I might ordinarily wait to see on pay cable or via streaming. I often hit the concession stand, which is where the theaters make most of their profit. Good deal for them, right? Where Moviepass is thinking they’ll make their profit is from understanding the moviegoer and selling that data. That’s why they’re so inexpensive – to scale quickly – and they’re hoping to become so ubiquitous that they end up getting a cut of the increased attendance they are generating (the 3 extra trips to the theater I make in a month!). With me so far?

A friend of mine also has a Moviepass that she was given as a gift. Her 6-month gift ran out the other day and she went to renew. Here is where the fun begins and where we all can learn a little something. There is no way to renew a gift subscription. Seriously. She wanted to convert the gift to a regular subscription on her own credit card and Moviepass won’t let her. Instead, they require that you start all over and create a new account using a different email. Let’s think about how many things are wrong here.

First, you’re a data company. By demanding an existing customer start all over, you’re blowing off all the data you’ve collected on them to date. Second, since Moviepass requires a physical card to work, you now must issue a new card. Besides being an expense for you (create the card, ship the card, etc.) it’s extremely inconvenient for the customer. Third, I’m anticipating that since an account is married to a device, there will be an issue when she gets her new account and tries to tie it to her existing phone. You can’t use your pass without using the app and the app is tied to a device and your card. There isn’t a single reason I can think of that makes this a smart policy.

This silliness has forced many customers to reach out for customer service (a cost!) and from the heated postings on Facebook, Reddit, Twitter and elsewhere, it’s resulted in a lot of lost business for Moviepass. One of the main advantages of the digital world is how there is far less friction in many transactions. Online commerce brings your shopping to you and you never leave the house to lug stuff home unless you care to. Moviepass seems to have found a way to increase friction among its existing customer base – those who received gifts and want to remain as customers. Not very smart in my book. Yours?

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