MoviePass, the popular movie subscription service, has announced its first profitable year ever, marking a significant milestone for the company. This comes as the box office experienced a disappointing weekend, particularly during the Super Bowl weekend, which historically tends to be slow for the movie industry.
Stacy Spikes, the Co-Founder and CEO of MoviePass, joined Yahoo Finance to discuss the challenges faced by the box office and their impact on his company. When asked about how MoviePass plans to attract more users to its platform during times when there aren’t many blockbuster movies drawing people to theaters, Spikes emphasized that major tentpole films are not the main drivers for subscribers. Instead, he revealed that MoviePass users are more interested in independent titles and are eager to experiment with different films. Spikes stated, It’s all of the smaller ones like we saw with Origin, we saw with Poor Things, a lot of the Oscar nominees. That’s where…they like to experiment.
Regarding profitability, Spikes mentioned two key factors that have contributed to MoviePass’s success. The company has effectively utilized artificial intelligence (AI) to analyze data and make informed decisions. Additionally, MoviePass has introduced a new credit system to enhance its financial standing.
MoviePass’s approach to catering to the preferences of its predominantly young user base seems to be paying off. Over 75% of its members are under the age of 35, and they are more inclined to explore and discover independent films that may not receive as much attention as big-budget blockbusters.
The use of AI and the implementation of the credit system have been instrumental in MoviePass’s journey toward profitability, enabling the company to make strategic decisions and manage its financial resources more effectively.
This development signifies a positive turning point for MoviePass as it secures its first profitable year. Despite the challenges posed by weekends like the Super Bowl weekend, MoviePass remains confident in its ability to attract and retain subscribers. By catering to the interests of its predominantly youthful demographic and leveraging AI and innovative financial systems, MoviePass is carving out a unique space in the movie subscription market.
For more in-depth analysis and the latest updates on the market, be sure to watch the full episode of Yahoo Finance Live.
