AMC is raising the price of Stubs A-List, its ticket subscription service. Stubs A-List is a MoviePass competitor, but it might be heading down the same path as its doomed rival. The price for its monthly service will go up by up to $4 in the 15 states where it is most popular. Looks like the theater operator has discovered, just like MoviePass before it, that the more moviegoers use the service the less sustainable it is.
Subscribers in Colorado, Delaware, Florida, Georgia, Illinois, Maryland, Minnesota, Pennsylvania, Virginia, Washington, and the District of Columbia will have to pay $2 per month extra, or $22, while subscribers in California, Connecticut, Massachusetts, New Jersey, and New York will pay $4 more per month. The other 35 states will not face a price increase.
AMC’s Stubs A-List program is not as vulnerable as MoviePass when it first started. It limits movie goers to just three movies a week for $20 per month at any of its theaters. MoviePass originally allowed subscribers to see an unlimited number of movies for only $10 per month. The company never really recovered from that generous offers that made it bleed millions.
But even with AMC’s more conservative offerings, the service turns into a money-loser if people use it too much. After just two movies a month it becomes a financial drain in most areas. In NYC, just one movie costs about $15. Sinemia, a similar service, will also be a money loser if people max out their memberships.
All these services are counting on people to pay for a membership and not really use it much. maybe the same way gyms do. to not use your service to the fullest. Motion Picture Association of America says most moviegoers see four to six movies a year. That would be great and extremely profitable for AMC’s Stubs A-List and similar services, but those average do not apply here. People will see four to six movies a year if they’re paying full price, but once the monthly subscription is paid, every movie is free. That means that people will probably watch more movies that they would otherwise. People like free stuff.