When MoviePass drastically dropped its prices in August,Watch Educating Elainia (2006) the company expected some growing numbers. What it didn't expect was jumping quickly from 20,000 subscribers to 150,000—and in a matter of days, to 400,000.
That dramatic increase was more than anyone at MoviePass bargained for, and led to a spectacular backlog keeping new users from getting their subscription cards and getting to actually,you know, go to the movies.
SEE ALSO: Biggest theater chain to $9.99-per-month MoviePass: 'Not welcome here'MoviePass C.E.O. Mitch Lowe told Bloombergthat the company "completely underestimated" how many new subscribers would join, but the surge in new users is at least part of the strategy that led MoviePass to striking prices from as high as $50/month down to $9.95 for unlimited movies.
To use MoviePass, users simply download the mobile app and sign up online. After that, they receive a MoviePass credit card in the mail which tops up every time you "check in" to a movie on the app.
Users who signed up right after the price cut should have received their cards by now, but orders continued to backed up several weeks; previously, getting a MoviePass card took some 5-7 business days after signing up for the service. The company's social media presence is overrun with customer service inquiries and apologies.
Original image has been replaced. Credit: Mashable According to Bloomberg, MoviePass hopes to acquire 2.5 million new users in the next year, and the nine-person team has now expanded to 35 to accommodate their growing base. Some new users who have signed up but still need cards are using e-ticketing, but even that is tough to rely on.
“It has definitely not been good for customers or our reputation,” Lowe said, but “I think we’ll be up to speed in a month.”
After incentivizing movie viewings with the new low price, MoviePass hopes to invigorate the theater industry -- to get users to keep going once they start at a steal of a price. The biggest opposition came from close by; AMC, a longtime MoviePass partner, said the price model was "not one AMC can embrace." The company is actively searching for alternatives to working with MoviePass, including launching its own subscription service.
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