Quote:
Originally Posted by Cecil Terwilliger
If you look at their standard pricing it is $25 per month.
I think they're counting on people signing up for a year and not averaging 2 movies per month.
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Is that their standard pricing? Or are they attempting to show what you save per month? $24.99 is about the price for 2 standard 2d movie tickets
Quote:
Originally Posted by Jason14h
If Sinemia gets 30% of moviegoers in year one, what is Cineplex going to do? Create a subscription plan for more ? If they were going to create the subscription plan for the same cost, what's the point, just let Senimia exist and pay them the cost of a ticket, as the cost is the same to you, and you don't have to worry about member acquisition.
Sure they can copy the model, but it doesn't save them any money, because they have to offer the subscription for at least the same price!
This is the same as saying "Why don't the cabs charge less and create an app to complete with Uber"
Well they sort of tried. But these companies 'can' have very deep backers.
I am not saying they will be successful, just stating what their business model is.
Cineplex already offers Costco those 2 movies and popcorn and drink things for like $25. Do you really believe they wouldn't jump at the chance to sell a million tickets at $7 bucks each to Sinemia?
The marginal cost for getting people to the theater is basically nothing, and most theaters don't sell out most shows. It's convincing people to get off their couch and go that's the problem for theaters.
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It isn't just the theaters that Sinemia is trying to strong arm here, it would be also the movie studios.
From what I have read, on a movie's opening week, the studio can get as much as 90% of the ticket revenues. This percentage goes down the longer the movie is in the theater. It is estimated that the movie studio gets 60-70% of the ticket revenue for the entire time the movie is in a theater. You start slashing ticket prices, the movie studios likely get involved.
And it is a bit like trying to squeeze out blood from a rock. The profit margins of North American theaters is estimated to average around 4%, most of which comes from concession sales.