“Things that we did before that made the company great…we want to bring those back,”Spikes tells
That was before 2017, when MoviePass was acquired by Helios and Matheson and before Spikes says he was let go over the disagreement on the price point he felt wasn’t viable in the long run (he had a good instinct there). Now, his goal is to create reliable products with great customer service and lots more flexibility. There’s a lot Spikes still doesn’t know about how a relaunched MoviePass will look, but there is one key detail.
“I can tell you it’s not going to be $10. I know that with great certainty,”Spikes spoke in an interview. “The landscape has changed.”
Spikes also sidestepped the question about MoviePass’ tarnished brand after the struggling service changed subscription terms before abruptly shutting down in September 2019; parent company Helios and Matheson Analytics filed for Chapter 7 bankruptcy four months later. He wants to bring back the customer-first approach it used in its early days. “At the end of the day, the playbook is: great service, great product, reliability, transparency, meeting with consumers on a regular basis. All of those are things that we did before that made the company great and exciting and worthy of an acquisition before, that was radically changing the industry, we want to bring those back.”
So here’s what will still be the same: Spikes acquired MoviePass’ old proprietary app, which allowed users to sync their phones with their red MoviePass credit cards so they could use their subscription at effectively any movie theater. Spikes anticipates that you will continue to need your physical credit card for theaters. Though if the company’s Newly launched websiteIf it is, it could be yellow.
The acquisition did not include any emails or personal information from the prior regime. Spikes and his staff will therefore be signing up customers completely from scratch. And that’s not the only reason Spikes will have an uphill battle ahead of him.
Though MoviePass didn’t ultimately stick around, it disrupted the industry to the point that exhibitors have all launched their own subscription services and premium-rewards programs, including AMC Theatres, Regal, Cinemark, Marcus, Alamo Drafthouse and Showcase Cinemas. What’s more, the COVID-19 pandemic and the surge in streaming has completely changed consumers’ appetite for going to the movies.
Spikes, who created the Urbanworld Film Festival, and created PreShow, an app that rewards people who watch long-form content. He hopes that offering an option to view movies at any theater will encourage audiences to return to the theaters. The new MoviePass will offer options for both those who prefer to see a specific theater or those who wish to visit multiple locations. Any
Here’s more from ’s interview with MoviePass co-founder Stacy Spikes (this interview has been lightly edited for clarity).
Why did you decide to buy MoviePass back from bankruptcy?
Subscription models still have the potential to drive theater traffic. It works. It also gives me the chance to help the industry get out of COVID. I believe that I have a passion for it because I have worked in it for so many years. Third, to see MoviePass fans still bring up MoviePass and talk about what we were trying accomplish with affection. These three reasons were what drove us to help and did our best to make a difference.
You’re essentially starting from scratch and build from the ground up.
There’s a brand there, so that does some of the heavy lifting, but there’s definitely people that you want to get back and bring them back. But you’re starting from zero in that you don’t have an existing subscriber base that you’re just flipping a switch on.
When you first founded MoviePass, what was your goal and your dream, and how has that changed now that you’re back in the fold?
Our original vision was that we began the process back in 2008 by saying, Hey, we really believe the industry can support a subscription-based model. Slowly, the product was built up. We launched it in 2012, and continued to use it until the end of 2017. Because people believed in the concept, the stock of Mathison and Helios soared after the sale. The difference was that the price was not sustainable. It was just too cheap. We were very close to the movie industry. You may recall that we had a working relationship with AMC in the past. That’s how we operated, and that’s how we want to operate again.
MoviePass was a disruptive force in the industry, and it has changed how people view movies. Other exhibitors now offer their own subscription services. How do you hope to enter back into that marketplace that’s radically changed and also hope to do business and cooperate with the studios and exhibitors?
It’s easy to put butts into seats at all the theaters. Our mission will remain the same. I think it’s wonderful that there are more exhibitors that are doing this. This marketplace was created by us. I believe that about half of theaters now offer some type of subscription. The difference will be, we’ll offer the customer the freedom to go wherever they want. It will not only be able to sit alongside the person who wants to see one theater.
If you’re like me, I go to AMC, I go to Regal, I go to Angelica, I go to Cinepolis, I go to the IFC. MoviePass is a good option for me. I want to see art-house and blockbusters. I also like theaters that are family-run. We’re there to support all of that, and I think those two things are not in competition with each other.
If they already have MoviePass subscribers, are the Regals and AMCs willing to let them take MoviePass people? How can you present this case to exhibitors?
Really, it’s the consumer making the decision. At the end of the day, they’ll want as much traffic, whether it’s coming from Fandango, whether it’s coming from Atom Tickets, whether it’s coming from MovieTickets.com, whether it’s a Costco voucher. We want to help make traffic driving easier and more efficient. There are many people trying to drive traffic.
Do you still need to show a card?
You should start there. We’ve done the research that so many theaters still have a magnetic strip that unless you’re completely integrated with the theater, you need that magnetic strip as a way to gain entry. This has not changed over the past two to three year. Until the exhibitors completely update their systems, I think you’re probably going to have the magnetic strip for a minute.
Was your reaction to MoviePass going bankrupt? What was your reaction to the events unfolding?
There’s three different points in time, when it started to take off, when the rocket started going sideways and when it looked like impending doom.
When it started to take off, one of the coolest moments for me was when I went to the Regal Union Square (in New York City)… I remember I went to the very first kiosk and I watched around me and I had to have seen eight or nine people take out their red MoviePass cards. To see that was incredible. We had changed the system so that, if you were more frequent moviegoers, the proof of purchase would be available. You could also take a photograph of your ticket. I heard the kid behind me turn around and say, “Are you Stacy Spikes, the founder of MoviePass?”And it was as if, “Yeah,”That was something that I had never experienced before. I was able to see all the people using the service simultaneously, which was when I knew I was being recognized. That’s when I felt something magical was really happening.
The $10 price point was initially intended to be an entry level, but once you signed up it would normalize. However, the new buyers wanted the pedal to the metal. The new buyers wanted to keep the foot on the gas. I raised my concerns and we parted ways. As everyone else, I watched as the drama unfolded and got worse. And it was unfortunate, because I think we were on to something huge, even enough that I’m back to continue that journey and trajectory of what MoviePass was on and trying to achieve.
Is the goal to still have unlimited access to films — including all new releases?
That’s being talked about as well. We’re doing a bit of a listening tour. We have to speak to those we care about, including the consumers, theaters, and studios. And we want to make sure we have those conversations from everyone’s side, and if MoviePass is not healthy and not a viable business, that doesn’t work for anyone either. We need to ensure that all four of the players are present so that we have strong support systems to help what I believe could be a major player in the industry.
I have a question about MoviePass. How do you bring people back into the fold who were burned by MoviePass before and disassociate from the company’s crash and burn period?
The bottom line is to provide great service and great products, be reliable, transparent, and meet with customers on a regular basis. All of these are things we did previously that made the company exciting and great. We want to do them again.
I’ve always been a personable CEO. I speak to customers all the time. It was part of my responsibilities as a member of the team. Each of us took turns working on customer service in order to all hear the customers. There’s no other way in this day and age to grow a business if you don’t have happy customers. Our goal is to make them happy, to make them feel satisfied, and to give them a great experience. They want to see more movies and go back to the theaters. I know there’s people like me. We are trying to create a product that appeals to cinephiles, those who love watching movies on the big screen.
What happens to PreShow Is MoviePass possible?
Part of the conversation I had with the PreShow board, I think the two technologies, FinTech and PreShow’s AdTech can actually play together. Although we need to get some ideas out there and allow customers to play with it and try it, I believe PreShow is complementary to MoviePass.
You mentioned that you believe theatrical subscription can be a factor in increasing movie attendance. Is your ultimate goal to ensure MoviePass works correctly?
No. 1. You must have a product that is good for everyone. Good customer service is essential. You have to have a product that’s reliable. You have to have a product that people can depend on, that’s consistent, it works all the time. That is the most important thing. It is essential that all parties are happy. This creates a rising tide that lifts all boats.
MoviePass is still a young company. You have a business that’s operating on 30 or 40% attendance levels. You have lots of potential growth. Imagine if the company had reached its full potential and had attracted 10, 15, or 20 million customers. Then you’re talking about a very significant lift, which mean more people have jobs, and studios bet on cinema versus just having you stay home and watch it on a device.
The website now appears black instead of red. What’s the reason for the rebranding? What is the reason for the change?
It was a combination of the same team, but with a slightly different jersey. The concept and the underside details were also the same. We wanted it to feel unique. The original members of the team are back and there are some new members who are familiar with the industry. But we wanted that feeling of, OK, let’s give it some visual difference, that there’s a demarcation in time that this was different.
