PRESS RELEASE
New Agreement with Distributor Provides MoviePass with a Portion of Ticket Revenue Based on Marketing Campaign Performance Metrics from MoviePass’ Marketing Campaigns Indicate That MoviePass Members Represent a Demonstrable Percentage of Opening Weekend Domestic Box Office, Which Tend to Climb and Become Even More Impactful in the Theatrical Window for Both Major Blockbusters and Independent Films; MoviePass’ Ticket Spend Accounted for 13.21% of the Domestic Box Office Opening Weekend* for Sony Pictures/Columbia’s Roman J. Israel Esquire and 10% of Domestic Opening Weekend* Box Office For Fox Searchlight’s “Three Billboards Outside Ebbing Missouri”
NEW YORK, Dec. 11, 2017 (GLOBE NEWSWIRE) — (Nasdaq:HMNY) — MoviePass, Inc., the nation’s premier movie-theater subscription service, today announced that it has signed a marketing and performance-based revenue agreement with an independent movie distribution company. Under terms of the agreement, MoviePass will provide active marketing services to a particular title and will earn revenue based on the incremental increase in ticket prices demonstrated in the theatrical release of the film.
The agreement comes as MoviePass has actively engaged with major Hollywood studios and independent film distributors in assessing how MoviePass is impacting box office results – both inactively, simply by being a player in the ecosystem and actively, by collaborating to influence subscribers’ moviegoing behavior and film selections.
Recent MoviePass marketing campaign highlights include:
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MoviePass actively promoted Amazon Studios’ Last Flag Flying (distributed by Lionsgate), MoviePass realized a further 53.3% increase in ticket purchases for the title against a statistically relevant control group, which was not a part of the marketing campaign.
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MoviePass actively promoted Bleecker Street’s The Man Who Invented Christmas, MoviePass realized a further 48.3% lift to ticket purchases for the title against a statistically relevant control group which was not a part of the marketing campaign.
MoviePass also released data that represents the monetary impact its ticket purchases has been having on the actual box office revenue figures* from the Opening Weekend (and beyond) of several recent films, as well as the impact on revenue by actively promoting certain titles. Key highlights include:
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MoviePass’ ticket purchases accounted for 13.21% of the Opening Weekend domestic box office for Sony Pictures/Columbia’s Roman J. Israel Esquire (Release Date: November 17, 2017). This represents more than a 6x increase on the average 2% of the box office that MoviePass contributes to nationwide.
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MoviePass’ ticket purchases represented 10.00% of the Opening Weekend domestic box office for Fox Searchlight’s Three Billboards Outside Ebbing, Missouri (Release Date: November 10, 2017). This represents more than a 5x increase on the average 2% of the box office that MoviePass contributes to nationwide.
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MoviePass’ ticket purchases represented 1.78% of domestic box office for Warner Brothers’ Justice League on Opening Weekend (Release Date: November 17, 2017). The domestic Opening Weekend box office was reported at $93,842,239. Even as the domestic box office for the film shrunk to nearly 27% of Opening Weekend box office for the second full week (beginning Monday, November 27th and ending Sunday, December 3rd), MoviePass’ ticket purchases actually climbed to 2.17% of domestic box office total during that same period.
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For Disney’s Coco (Release Date: November 22, 2017), MoviePass’ ticket purchases represented 1.34% of the total Opening Weekend domestic box office, which was reported at $72,908,930. The first full week after Opening Weekend (beginning Monday, November 27th and ending Sunday, December 3rd), Coco’s domestic box office receipts reportedly shrank nearly 50%, while MoviePass’ percentage contribution to the domestic box office increased to 2.18%.
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MoviePass’ Opening Weekend box office contribution to Universal Pictures’ The Snowman (Release Date: October 20, 2017) was 3.54% of the total Opening Weekend domestic box office. The next full week excluding opening weekend (beginning Monday, October 23rd and ending Sunday, October 29th) showed MoviePass’ contribution at 5.00%. By the second full week (beginning Monday, October 30th and ending Sunday, November 5th), MoviePass’ box office contribution was 4.44%. This suggests that while theatrical box office decreased MoviePass’ contribution to the box office as a percentage of total box office receipts remains strong – and climbs past Opening Weekend.
“The data speaks for itself – our data shows that MoviePass has a demonstrable impact on revenue figures and percentage contributions to overall box office receipts for both major studio releases and independent films during Opening Weekend,” said Mitch Lowe, CEO of MoviePass. “And in partnering actively with studios, exhibitors and distributors to promote particular titles, we continue to drive even more tangible benefits to both movie exhibitors and studios. With studio-driven revenue, we have delivered on our promise to investors that our business model will continue to expand beyond subscription fees.”
“Studio and distributor executives are increasingly understanding our impact on box office receipts. But we’ve moved beyond ideological discussions in Hollywood to the tactical – how we can partner with studios and distributors to actively influence moviegoing behavior in order to have our subscribers select and buy tickets to their titles over other movie options,” said Khalid Itum, VP of Business Development at MoviePass. “And while it can no longer be disputed that our opening weekend box office numbers are consistently significant at this stage in our company’s growth, I think the real story here is the velocity of our impact: that MoviePass’ contribution to those box office totals grow beyond opening weekend for sustained performance in the theatrical window even as box office receipts decrease overall on a weekly basis.”
*Box office data derived from Box Office Mojo for the opening weekend (Wednesday or Thursday through Sunday) of recent film releases.
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