While there were questions in the industry whether a monthly movie ticket subscription service from a major exhibitor might take dollars out of the pockets of studios and 3D and large format exhibition partners, Imax reports today that business is going to be just swell under AMC’s new Stubs A-List $19.95 per month program.
“Imax Corporation believes this program will greatly expand the Imax audience,” read a statement today from the large format exhibition partner.
The new AMC rewards tier allows members to see 3 movies a week, in any format, which typically come with surcharges at the theater with a single admission ticket. Monthly movie ticket subscription rival MoviePass doesn’t allow its members to purchase large format or 3D tickets, just 2D.
“We expect to see a surge in demand for Imax tickets from this exciting new program, which should drive incremental revenue to Imax theatres by offering consumers – for the first time – the freedom to experience blockbusters such as Jurassic World in Imax over standard offerings for no additional upcharge,” said Imax CEO Richard L. Gelfond.
Under the terms of the agreement between Imax and AMC, the theater chain will ensure there is no reduction in Imax’s overall economics. Further, the addition of Imax to AMC Stubs A-List program will not impact the large format exhibitor’s studio arrangements and the incremental attendance should result in increased revenues.
Gelfond added, “This initiative comes at an exciting time in our partnership with AMC following the launch our next-generation Imax with Laser. We believe the combination of this innovative new program, together with the introduction of laser and other network-wide theatre enhancements, provide the perfect opportunity to attract new customers to The Imax Experience. Different versions of this type of program have worked well in Europe for more than a decade to drive incremental attendance and we feel strongly that given the choice, audiences will want to see their favorite films in Imax.”
AMC CEO Adam Aron today on a analyst call said that he believes the new rewards program can stem the decline in 3D attendance, will help turnout in Dolby auditoriums and certainly move traffic into Imax hubs.