FEATURED IVEY CASE
MoviePass: Disruption Through Subscription
Product Number: 9B19M108
Publication Date: 09/13/2019
Length: 12 pages (6 pages of text)
In August 2018, MoviePass, a New York City–based movie ticket subscription service, faced an acute cash crisis that threatened its ability to continue in business. The company had disrupted the movie exhibition industry by offering movie tickets at a discounted monthly subscription price. Despite having quickly grown its subscription base to 3.2 million, it faced several challenges. The company had cash to survive for only the next two months, and a competitor was pushing its own subscription service. As a disruptor in the newly emerging subscription economy, MoviePass faced an existential crisis. How could the chief executive officer and his team increase MoviePass's subscription base and turn the company’s first-mover and wider-network advantages into greater profitability—before the company ran out of capital?