MoviePass continues its rapid rise as it surpasses two million subscribers
Frank Pallotta, CNN
(CNN Money) — MoviePass is not slowing down.
The $10 a month unlimited movie service just crossed two million subscribers less than one month after passing 1.5 million users, the company announced on Thursday.
“We’re giving people a reason to go back to the movie theaters and they’re going in droves,” CEO Mitch Lowe said in statement. “With awards season here, we hope we can make Hollywood and exhibitors very happy by filling seats with eager audiences.”
Thursday’s announcement did not include any information on how many subscribers are actually using the service to watch movies. CNN has reached out to MoviePass for further details.
Ted Farnsworth, the chairman and CEO of MoviePass’ majority owner and analytics firm Helios and Matheson, said that the service is bringing people back to theaters by “lowering their cost,” which the company believes is “transformational for the industry.”
The data the company collects from these two million movie-goers “will become an important asset to our partners and the future of the movie industry,” Farnsworth said.
MoviePass has been the talk of Hollywood and movie-goers since it lowered its subscription fee to $9.95 a month in August, setting off its tremendous growth rate.
Lowe told CNN last month that the company is buying one in every 35 tickets sold in the country. He also said that the company is playing catch up to its own growth by investing in areas like its unstable MoviePass app and its unreliable customer service.
Despite its successful rise, the service has found itself in a contentious relationship with mega movie chains like AMC while also answering questions about just how viable its business plan is. MoviePass sells its user data to third parties to make money.
“Our service is really low because we are going to use our understanding of you as a customer to be able to give you relevant suggestions that you might find valuable in your life,” Lowe told CNN last month. “We might say there’s a great restaurant across the street from the movie. If you go over there and show them your card, you’re going to get a free appetizer.”