⭐The MoviePass Case Revisited⭐
Recently, I saw a PVR-Inox movie pass advertisement, and it reminded me of the MoviePass case we discussed in our marketing class at #LBS.🤓
Similarities✅: Both passes offer the ability to watch multiple movies each month. MoviePass allowed 3 movies for $10 per month, while PVR-Inox offers 4 movies for Rs. 349 per month.
Differences❎: MoviePass relied on AMC theatres, while the PVR-Inox pass is an in-house initiative.
Long-term Viability🔭:
We can categorize subscribers into three groups:
- Engaged: Fully utilize the pass.
- Frequent: Watch 2 movies per month.
- Passive: May not use the subscription every month.
Assuming 10% of subscribers are engaged, 60% are frequent, and 30% are passive, and considering a regular ticket costs Rs. 233, the model is loss-making unless frequent users drop to 55%. Thus, the scheme’s success hinges on maintaining at least 35% of the customer base as passive users.
Why Would PVR-Inox Launch This Scheme Despite MoviePass’s Failure?
1. Boosting Theatre Attendance: With OTT platforms offering a wide range of movies, cinema attendance has decreased. This scheme can attract theatre enthusiasts and provide a consistent revenue stream post-COVID.
2. Concession Revenue: Cinemas generate substantial income from food and drinks, which can offset losses on ticket prices.
3. Achieving Profitability: The scheme offers a pathway to profitability, especially after a challenging 2023.
4. In-House Control:Unlike MoviePass, which was dependent on AMC, the PVR-Inox pass is internally managed, akin to AMC’s Stubs A-List. This allows PVR-Inox to adjust pricing and strategy based on performance.
I’m interested in your thoughts. Feel free to comment below, and let me know if you'd like more case studies like this.
#casereview #analysis #moviepass #consultingcase #businesscase
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