Cinemark Holdings ( CNK ), the third-largest US theater chain, on Tuesday announced the launch of a movie subscription membership program that gives customers discounts on tickets, concessions and other benefits.
In a press release, Cinemark's CEO Mark Zoradi stated, "Based on the feedback we received, we designed Movie Club with all of the features and benefits that moviegoers desire most in a membership program without any of the hassle, enabling our guests to enjoy the moviegoing experience with their friends and family".
While most people get their content online in an increasingly digital world, we shouldn't forget where most of it came from - the movie theater. MoviePass' deal for subscribers is incredible-and its long-term business model can seem equally hard to believe. However, it's hard for exhibitors to pull off a MoviePass model: There's no way for them to discount significantly without cutting into a studio's rental, and that's what the majors don't want.
While some chains, like AMC, have criticized MoviePass for teaching consumers to under-value their product, others-including Cinemark, which will continue to accept MoviePass-see empty seats as a bigger threat to their model than a discounted ticket price for subscribers. Variety reports this summer's box office was the worst the movie industry has seen in more than a decade.
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