MoviePass has been combined several type of pricing strategies to attract users as well as increase revenue of the company. As per the article more than a one pricing strategies can be concluded as Two-Part pricing strategy, Peak Load pricing and Cross-subside pricing strategy.
MoviePass providing monthly subscription and giving some quantities of movie tickets to their user in a less price compare to the regular movie ticket price. The MoviePass increased subscription charge to $14.95 per month to block customers from seeing new release during the first two weeks by entering in cash constrain mode it is a clear evidence of Peak Load pricing. Also, company offers some discounted price for the user who see more than three films a month and if they purchase through the MoviePass App as based on a cross subsides pricing strategy. By the fundamental of MoviePass’s strategy was the goal of scaling enough to have the power to shake down movie theaters for business profits or reduced prices on tickets. It didn’t work.
It’s fascinating price-to-value proposal attracted early reorganization and customers, but it wasn’t a viable long-term model.
