Ep. 91: Cinemark Subscription Offering a Good 1st Step.

TEK2day Podcast - A podcast by TEK2day

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Cinemark's new subscription service - Movieclub - a good start, however bolder steps are required. Movieclub subscription service: $8.99 per month; 1 2D movie per month per subscriber; Unused tickets roll over and never expire; Members may share unused allocations with other members and non-members; No online fees; Additional tickets may be purchased at member price of $8.99; 20% discount on concessions; Notes, Assumptions and Our Advice to Theater Owner/Operators: - Avg ticket price for a Friday/Saturday night 2D movie = $11. Therefore Movieclub subscription is approx. an 18% discount per ticket (before the 20% concession discount); - Positive for Cinemark in that this offering will increase Cinemark's revenue visibility, albeit at discounted prices; - My view is that theater owner/operators need to take bolder steps to further mitigate the risk associated with the mega-trend that is in-home viewing (which applies downward pressure to theater-owner revenues). Our advice: make the capital investment and partner with movie studios and technology companies to offer premium services such as Augmented Reality ("AR") and Virtual Reality ("VR") in-theater experiences.