| Calling this the "Netflix Model" seems naive. When Netflix initially launched, there were two major drawing points. 1) Access to a large library/inventory. Traditional rentals were limited to mainstream/popular film and newly released films required luck to rent. Netflix made cult films easily accessible (Eraserhead, Cannibal, etc.). 2) Price savings in comparison to traditional Brick-and-Mortar Rentals. Netflix Subscription fees were equitable to two movie rentals a month. Two movie rentals a month seems like a number not outside the norm. The service they discuss would require seeing approximately 5 movies a month just to equal the subscription fee. That is a large number. Secondly, they aren't giving access to any more product. Just the same movies that weren't worth watching before. With the exception of oscar season I think watching five newly released movies a month would be more of a punishment. Their shameless promo integration (pre-selling DVDS, "early access to trailers", merchandise sales) only serves to further devalue the user experience making $50 seem far too high. As a final note, I do believe the pricing structure/experience of theaters should be re-examined and this is a start. Personally, subscription concessions could be a cool place to start. I would really consider paying $30 a month for 5 large popcorns and drinks (and that would still leave a huge margin). |
In any case agreed, anything they can do to push food and drinks is how they can fleece customers more and blow out their bottom line