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SWOT AnalysisMovie Pass: The New Way to See Every Movie You WantMovie pass is like Netflix, a popular and successful movie rental company. However, Movie Pass is for movie theaters. In short, a subscriber can pay $30 per month for movie pass and attend any movies in theaters that they would like to. There is no limit on how many times they use it, as long as it is in a one-month time period. It is important to note that the subscription applies to one person, meaning each person would pay a fee of $30 (Smith.) The nationwide average movie ticket price is $8 per movie, making this beneficial for the consumer. In contrast to that, it allows theaters that are low on attendance, due to elevated movie prices, to fill their theaters up. This service would be beneficial to an array of different ages. Netflix had approximately 24.4 million subscriptions in 2012, proving that unlimited movies are a huge and popular form of entertainment (Liedtke, 2012.) Moreover, that offering discounts on movies to consumers has proved to be a successful business plan. Recently, the company has made the service more convenient by making it into an app to manage your membership and movie purchases. Although, it is only an app for iPhone, an android app is currently being developed. (Brustein, 2013.) At the beginning of 2013, the service is only available as an invite only service. The starter, Mr. Spikes, says that he plans to release the subscription to everyone within the next year (Bruder, 2013.) Strengths for the Theaters and ConsumersWith the average price of a movie being $8 per person, going out to the movies is something that people have refrained from doing in order to save money (Smith.) With the economy at a low, people are trying to save money, meanwhile theaters are still trying to make money, in order for their businesses not just survive, but be successful. Therefore, movie pass encourages people to continuously attend movies because of the affordable price. In addition, it fills the seats in movie theaters so that they can make money through services like food stands, which has a large profit margin. There has been proof that consumers who use Movie Pass are more likely to spend cash on food, which can be another source of benefit for the movie theaters. The first stage of Movie Pass did not even allow the company to start because there was conflict with the movie theaters. The second stage included printing out your tickets. The third and current stage includes the app, which makes for a more convenient service. This means that all of the glitches and potential logistical problems have been identified and sorted out (Brustein, 2013.)Weaknesses of the Overall ConceptThe overall problem with the concept is the fact that people watch movies illegally. Although it is illegal and ideally it would not happen, illegal movie viewing does take place. Therefore, you have those people who would rather just wait a few days until the movie that is in theater comes out illegally, than paying $30 a month to see movies. Beyond the unavoidable illegal activity, there are also legal weaknesses. For example, some people may rather pay that $8 for a movie because they simply would not be able to go to the movies enough times to make paying the $30 worth it (Smith.)In addition, movie pass requires movie goers to subscribe for one year. This commitment may be too much for consumers, especially if they do not think that they will go to the movies often enough to get the most out of the $30 pass. So, they either will not choose to buy the pass, which obviously makes no profit for the company. Or, they will buy the pass, do the math, and start attending the movies more often, which lowers the profit margin for movie pass. Opportunities of Movie PassThe potential in this company is large due to the overall strengths of it. Although there are both strengths and weaknesses, the strengths override the weaknesses. The consumer pool for this business is large due to the fact that it is appealing for all audiences and also that a like company, Netflix, has been extremely popular and successful. There also is not any other company out there that compares to movie pass. This leaves movie pass to have the entire market for a business idea of this nature. Threats and Risks in the Company The risk, of course, is that the idea behind the company in contrast to people’s actual desire to go to the movies multiple times per month does not match up. Consumers may choose to wait for the movie to come out on video or illegally view the video for free. Both of these things could be to the demise of the company. However, with the large pool of people who like movies and discounts, the chance of these risks ruining the company are low. The Business Plan from the Starter, Stacy SpikesStacy Spikes has done a lot of research and planning to ensure that all of his bases are covered to avoid any failure with the company, Movie Pass. When asked about the financial risks of Movie Pass he responded “We’ve studied this and similar subscription businesses for a while and have conclusive data that reinforces our strong subscription model that includes incremental revenue streams.” Others also asked if he thought he could potentially lose money on some subscriptions, but make up for it with other revenue. “We believe the best way to have a successful business model is to have multiple revenue streams. This model is very similar to that of a studio that is focused on more than just box office ticket sales. Apart from the subscription service, we have three planned revenue streams: advertising, sell-through and data. It’s definitely not a one-trick pony.” Works CitedBruder, J. (2013, February 13). Taking a third pass at selling movie subscriptions. Retrieved from , J. (2013, January 18). A movie day without going broke. Retrieved from , M. (2012, January 25). Netflix regains 600,000 u.s. subscribers. Retrieved from Smith, K. (n.d.). 10 startups that can change your future life. Retrieved from ................
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