When I think about the things I wish I'd done a better job with today, it's making clear we're paying full price to AMC and every other theater, except for a small group of theatres that are working in close partnership with us. Because I was startled by the impact on their stock. We probably do as much business in a year as they do in four hours, and yet the investment community thought that somehow we were going to impact the largest theater operator in the world? It just.. we've either got a lot of credibility in getting really big, or it was just one more thing to be concerned about, or I didn't make it clear that we're paying AMC full price.
AMC is going to grow as a result of this, especially given those slow months coming up, September and October are some of the slowest months vintage garden iphone case in the theater business, and our subscriber base surge is going to get people to go to AMC theaters, What better time to take advantage of someone else footing your bill? It baffles me, I've been in the retail business for a long time, and it's a science, It's the same thing they said about Redbox., How in the world can you afford to rent a movie for a dollar a night when Blockbuster is charging $5 for a rental?..
It's all about utilization, about technology, about efficiency. If we can get people to the theaters more often and make the studios more money, we believe they'll share the revenue and profits. We're putting millions of dollars on the line to prove that we can be a valuable member of the moviegoing ecosystem.. and in advance we're not asking for a single cent. We're going to deliver more and more business at the same price.. and when it becomes more interesting, we want to talk about sharing in your incremental profits.
When we started Netflix (in the vintage garden iphone case by-mail days), we realized we had more demand for hit titles than we could satisfy, so we went to the studios and said, "Give us three times the copies for twice the price." They said, "Why should we do that?" So Netflix went out and bought its own movies at three times the norm and showed the studios that revenue sharing could maximize their returns., and now today everyone is on revenue sharing, It became the norm, They could absolutely do it, I've never been afraid of competition, When we launched Netflix, Blockbuster kept saying they could do it, We actually tried to sell half of the company to Blockbuster, and they said, "Why would we do this? We can just build it ourselves." And they did, but billions of dollars later, they closed down, Eventually, they opened 10,000 Blockbuster Express kiosks, and they failed..
It definitely makes it easier for the AMCs of the world to offer their own service. The downside for a significant number of consumers is that if you don't use AMC all the time, the service will be less valuable than a service like ours when you can go to any theater. I've spent the last year -- since I invested in this company and became CEO -- testing out various pricing models and looking at consumer behavior, seeing who the different prices attract. Our primary subscriber is someone who, today, is only going to between 3 and 6 movies a year, and now they'll go to between 6 and 9 instead. I think you can do that math: Divide 9 into $120. Or even divide 12 into $120, and you start to understand there's a small percentage of people who'll get an amazing deal, go to 20 movies a month and tell everybody how amazing it is, but the average consumer we're getting is going 3 to 6 times and now will go 6 to 12 times a year.
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