MoviePass announced today a new bundle with iHeartRadio, where new subscribers can pay $29.95 to see four 2D movies a month for three months with a free three-month extended trial of the latter’s All Access-on-demand music feature.
While the business media and Wall Street analysts has gone to town to declare how MoviePass is bleeding more money than it’s taking in with its unlimited movie-ticket plan, this is an experiment to see how many subs take to the four-tickets-a-month idea. While MoviePass isn’t executing a 180-degree change in its strategy, it is testing the waters to see what happens when the marketplace is presented with different options — in this case a package which offers a cap on movie tickets.
We’re bound to see more of these MoviePass bundle offers with a cap on monthly tickets in the near future. This deal with iHeartRadio is the second following the movie-ticket subscription service’s teaming with indie streaming service Fandor. Hulu and Spotify recently announced a $12.99-a-month promo bundle in an effort to boost subs. The thinking is that there’s more takeaway for MoviePass in this recent pairing in regards to how a new set of subs react.
Spotify counts more than 70M paying subscribers worldwide and after making shares available on the NYSE at the beginning of April, it was trading at $149 a share at midday, with a market cap near $27 billion. iHeartRadio counts 110M registered users on its digital music service, but it filed for bankruptcy protetion in March in an effort to restructure $10B of its debt, about half of what it owes. iHeartRadio All Access allows listeners to search and play any song instantly, listen to curated playlists and create unlimited playlists of their own, save songs directly from the radio to their device, and enjoy unlimited skips.
MoviePass’ dream goal is to one day control 22%-25% of the weekend box office — something some distribution executives scoff at, but MoviePass is adamant about.
MoviePass made the iHeartRadio announcement today in conjunction with the 2018 Coachella Music Festival & Arts Festival. Shares of HMNY, MoviePass’ parent company, were trading at $3.17 as of midday, +4.97%.