When was the last time you went to the movie theater? Better yet - How often do you go to the movie theater? If you're anything like me, it’s once or twice every few months. The sad thing is that there's no better place to catch a flick. But have you seen the price of a movie ticket recently? It's extortion! A seat will cost you between $8 and $15, depending on location and whether the movie is in Imax or 3D.
Recently, a friend told me about a website that offers passes for free sneak preview movie screenings. It’s searchable by ZIP code, so users can find upcoming screenings in their area and print invitations online. The first time I used the service, I was very interested to understand how and why this website operates. I mean, how can they offer me free movie tickets and run a website that is also free to use?
Arriving at the theater, my questions were answered. Having heard that the seating would fill up fast and worked on a first-come-first-served basis, I got there about 45 minutes early. Even getting there that soon revealed a line that stretched out the door and a packed concession area. Organizers made us leave all cellphones in the car using metal detectors to ensure that we did, so distractions within the theater were limited. After waiting in line for 15 minutes, we arrived at our seats where we watched ad after ad on the big screen while waiting for the movie to start. That's when it hit me: The theater benefited from the website because of ad revenue. 200 people were in the theater viewing ads for almost 30 minutes. Plus, for people like myself who can't sit still, the concession area begged me to visit. Talk about a captive audience!
I still had one more question: How do the movie studios benefit? When the lights dimmed and the movie started, I saw it. The theater was packed full and all eyes on the screen. I remembered the person taking tickets at the door saying "only 50 more people" when I passed, but the line had well over 50 people in it. There was a very high demand to see that movie. Boom - there it was. Movie studios can gauge opening day numbers based on the sample data of free screenings. And with multiple shows happening in different areas, they can even make predictions of where the movie will be most successful. Wow—that’s a powerful forecasting strategy.
To sum it up, everyone wins! I win because the service eliminates my biggest pain point of going to the movies – the price. The theater wins because creating the captive audience allows them to raise advertising rates and make advertising in the theater more attractive, plus increase sales of concessions. The studios benefit because the sample data gives them an idea of the movie’s public demand. And the website benefits because its service provides all of the these benefits, making its service valuable on multiple levels. Who thought going to the movies could be so educational?
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