At a panel during the Sundance Film Festival today, MoviePass announced a new subsidiary called MoviePass Ventures, Deadline reports. The new division will acquire and release movies with the help of a film distributor.
“Given the successes we have demonstrated for our distributor partners in ensuring strong box office in the theatrical window, it’s only natural for us to double down and want to play alongside them — and share in the upside,” MoviePass CEO Mitch Lowe said in a statement.
MoviePass has grown rapidly since dropping its prices to a flat fee of $10 per month in August. Last month, the startup announced it had more than 1 million subscribers. Still, it seems likely that the company is losing money, because it’s subsidizing the cost of every ticket its users buy, including in big cities where ticket prices hover around $15. “It’s been fairly easy to get people to subscribe in high-cost markets,” Lowe told Variety recently.
By acquiring movies and working with a film distributor, MoviePass is likely trying to increase its sources of revenue. And the company will be able to leverage its subscription service by heavily marketing its own movies to MoviePass subscribers.
MoviePass hasn’t shared many details about its film distribution plans, but the company will be heading to SXSW’s film festival after Sundance.
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