AT&T, the telecom giant, in collaboration with AMC Theaters and Regal Cinemas (the U.S. number one and two largest cinema circuits) is offering its customers a buy-one-get-one free deal on Tuesday movie presentations at over 13,000 screens.
Limited to Tuesday screenings and valid only for 2D films, the free admission tickets are available only to AT&T wireless customers. Tuesdays are typically one of the slowest days for cinema traffic so AMC and Regal see this as an opportunity to gain attendance from consumers who never frequent a cinema and which won't impinge upon their weekend attendance.
The AT&T offer comes on the heels of T-Mobile's rewards program that offered a free Domino's pizza, Wendy's frosty, and free movie rental from Vudu - however, Domino's backed out of the T-Mobile promo after the first week because of overwhelming demand. In response, AT&T is capping the number of free tickets given out each week. A ticket voucher is emailed to the AT&T customers chosen and validated at the cinema's box office when one, full-priced admission is purchased.
AT&T's 'Ticket Twosday' promo (as it is termed) is accompanied by pre-feature advertisements, as well as, concession tie-ins and is part of AT&T's overall customer-loyalty program. The 'Ticket Twosday' promo is scheduled to be expanded in the fall to include free tickets to Live Nation concerts.
Failed 'MoviePass' Is Trying to Revive Itself
Launched in 2011, MoviePass promised to revolutionize the cinema-going experience - but after 5 years the company (which offers unlimited access to cinemas) is little known and floundering.
Exhibitors, generally, view MoviePass as a threat vs. and ally, but the company just hired a new CEO (Mitch Lowe, co-founder of Netflix) who is determined to convince exhibitors that MoviePass can bolster their admission and concession sales.
Cinemas have done a great job, over the past several years, of upgrading the movie-going experience - digital projection, new seating, improved sound have all added-up and cinema admissions have remained static against a constant barrage of alternative entertainment options. The problem with MoviePass is that although it's a good concept, it conflicts with a cinema's own in-house loyalty programs.
MoviePass, which now costs between $30-40/month for one subscriber to view an unlimited number of movies, is moving to a tiered pricing system which will start as low as $20/month for access to a smaller collection of movies and extending to $100/month for unlimited viewing of 2D, 3D, and IMAX films. Last week, MoviePass sent out information on the new pricing to select subscribers which included a $50 package for six 2D or 3D films and a $99 package for unlimited movies in any format. MoviePass customers use a phone app and credit card to buy tickets.
For the avid movie fan, who visits a cinema at least once or more per week, MoviePass is a great service, but even for the frequent moviegoers who visits a cinema once or twice a month it really is not cost effective - and that is why CMG believes MoviePass will remain a niche service in the cinema industry.
Best,
Seymour
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