Fandango's FanShop: A Bit Too Late

As it looses its grip on the movie ticketing service, Fandango is searching for new ways to keep its game. Facing competition from both the major theater chains (which now boast their own sophisticated on-line ticketing and concession services) and from upstarts like Atom Ticketing and others, Fandango is scrambling. One way Fandango believes it can make up for lost ticket sales is to market movie related products such as T-shirts, posters, and other paraphernalia through a newly launched e-commerce site called the FanShop.

The problem with FanShop, is that it is going against giants in the e-commerce space, notably Amazon and Walmart, which both sell film-based swag of all sorts. CMG believes that although Fandango intends to differentiate FanShop from others in the retail space, by offering unique products and services, it is a losing endeavor.

Fandango has been trying to bolster it ticket sales business by transforming itself into a hipper, edgier entity catering to a younger consumer. Last year it purchased Rotten Tomatoes, the movie rating service, Flixster, a social media and ad site for "all things movie", and Movieclip, the YouTube movie channel.  These are all nice on-line sites but are a bit yesterday. Rotten Tomatoes has been around since ever, Flixster has uber-competition, and Movieclip, well, join the crowd.

FanShop's core products will be apparel and collectibles (no great shakes) but it will also be marketing special celebrity meet-and greets and movie premiere events. Now, these services would place FanShop in a unique space - but these specialized services must be executed precisely and efficiently. Geared for the rabid fan who is willing to spend the requisite bucks for a personal meet with their favorite celeb or for those movie fans wanting to attend a debut screening - there is a new, and developing market for these services. But, is there enough demand to turn these services into big-dollar generators?

CMG believes Fandango has no choice but to expand is services to the moviegoer/consumer but it is in a long-term losing battle. It's on-line ticketing business is being hammered, movie apparel and collectibles are everywhere, entertainment-based social media sites are ubiquitous, and all moviegoers are instant film critics to their friends, family, and acquaintances.

Just saying,
Jim