Mith Lowe, the co-founder of Netflix, who now runs a startup “MoviePass” plans to drop his new company’s price of a monthly pass to theaters to $9.95. The deal allows customers to get into one theater showing every single day during a month for just $10.
What is the catch? Well, it only seems to be that the theater must accept debit cards and you can’t go see a 3D or IMAX movie. The plan is that MoviePass will pay the difference of the cost of the ticket to the theater, which seems like it could rack up a big bill for the new startup.
This would, however, seem to get more butts in the seats at theaters that saw the top four cinema operators lose $1.3 billion in market value after a lackluster summer at the box office.
Lowe believes the plan for MoviePass will combat the issues movie theaters are seeing in declining overall customers. He believes the issue is not Netflix of Amazon Prime Video, but pricey tickets to go to the theater. The current average price of a theater ticket is $8.89 in the U.S.