Strategic Movements July 2018

July 2018 Corporate, Pricing

AMC Movie Subscription Service Competes with MoviePass

AMC Stubs cost $19.95 per month, and offer three movies a week at any of the 659 AMC locations, in any format (3-D, IMAX, etc.), with pre-booked tickets.  MoviePass at $9.95 offers one movie a day at roughly 5,200 theatres, in standard format only, and no pre-booked tickets. Competition has come to this market. Challenge: Different business models.  MoviePass plans on making money from the data it collects (two-sided market).  AMC is making money on theatre sales. Will both survive?  Depends on how deep MoviePass’s pockets are and how many customers are willing to pay more for more. Watch this market.

Corona Price Hike on the Horizon?

Beer sales rose 11% over same-quarter last year at Constellation Brands, but with transportation costs at margins. It is past time for Corona to raise prices in response to trucking cost inflation, but will competitors follow? The cost hits everyone. Someone needs to lead and then all others should fast follow.

About the author

Tim J. Smith, PhD is the Managing Principal of Wiglaf Pricing, and an Adjunct Professor at DePaul University of Marketing and Economics. His most recent book is Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures.

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