AMC Theatres Unveils "Stubs A-List" Subscription in Response to MoviePass

MoviePass, the service that allows users to view one movie per day in theaters for only $10 per month, has had a controversial history. Although the company is relatively young, its existence has caused plenty of drama within the movie theater industry. To some theaters, the subscription service is great in that they make money off of the movie tickets either way and can encourage greater concessions sales due to the lower ticket prices. To others, most notably AMC Theaters, MoviePass is giving customers unrealistic expectations of future ticket prices, which could cause issues for AMC if or when MoviePass eventually goes out of business. According to an LA Times article, AMC is looking to address those concerns by coming out with their own, similar, service, called AMC Stubs A-List.

Where MoviePass enables users to view up to 7 movies per week at pretty much every local theater, AMC A-List costs double the price and limits viewership to 3 per week, and only at AMC theaters. To the average MpviePass customer, this may seem like a terrible deal. Why would anyone pay double the price to see fewer movies per month at a smaller range of theaters? Well, it all ties into the economics of the subscription service. Yes, on a basic level, MoviePass is a much better deal in the short run. However, if you take into account that MoviePass is running a loss on every customer, it seems to be just a matter of time before the company has to either raise their prices or go out of business.

AMC's planned subscription service isn't as great of a deal initially, but because their pricing scheme is much more reasonable, AMC is much more likely to survive in the long run, from an economic perspective. So, if MoviePass were to one day go out of business, the A-list customers would not regret spending a little more per month for a better guarantee at a lasting service. Then again, MoviePass may survive after all, in which case their loyal customers will continue to reap the rewards.

It's not like AMC Stubs A-List is a bad deal. In fact, it's quite the opposite. The ability to watch up to 12 AMC movies for only $20 is a great deal, especially when the normal price for an AMC theater can be up to $16 for general admission, is incredible. Consumers are only looking down on AMC's subscription service compared to MoviePass' because MoviePass is just so great of a deal. However, AMC's subscription will be about more than basic movie tickets. It will also enable viewers to see IMAX or 3D movies and will provide discounts on various concessions. To many, this deal will seem worthwhile and could trigger a change. AMC's best bet in really capturing that market could be to focus on providing a better service than MoviePass. Many customers are upset with MoviePass that they not require uploaded images of purchased tickets, and by focusing on those complaints, AMC could really make a dent.

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Government Restrictions Eased on Secondary Housing Units

Throughout California, but especially in the Los Angeles area, housing opportunities are getting very limited. There simply isn't enough space to provide housing to the thousands of current residents and the hundreds of new people looking to find somewhere to live. Los Angeles has plenty of draws: the nice weather, the variety of shops and restaurants, and a wide array of employment opportunities. However, as more people look to come to California, the market shifts accordingly. Currently, even for those who can afford to buy a house or rent an apartment in the rising housing market, there is little room for being picky based on location; you just take what you can get. Fortunately, as Liam Dillon and Andrew Khouri describe in their L.A. Times article, California lawmakers are working on a way to address the major housing issue.

New construction of homes or apartment buildings could provide housing opportunities. Unfortunately, all available vacant land has also been growing scarce. Until recently, getting the required approvals and permits for construction was such an arduous process that it made it nearly unfeasible for most people to even try. Now, due to the push from Governor Jerry Brown and LA mayor Eric Garcetti, legislators are relaxing regulations, making it easier for homeowners to build "granny flats" in their backyards, thus converting empty space into housing.

Just a few years ago, any homeowner that wanted to convert a garage into an extra room or add an extra freestanding structure in their backyard had to face the seemingly endless trials of the governmental bureaucracy. In the end, many who tried to add on to their property, whether for guests, for family, or as a rental to bring in some extra income, inevitably failed or at least had to go through months of stressful negotiating with the city of Los Angeles. Now that the restrictions are being relaxed, at least to some extent, homeowners may help California as a whole to keep up with growing demand. Statistics show that Los Angeles needs to add at least 100,000 new units each year in order to keep up with the market, and retired individuals may benefit the most from this opportunity.

Some, like 78-year-old Rochelle Ventura, tried previously to submit plans to the city for backyard additions, but the strict regulations led to their ultimate rejection. Since 2005, so few units have been approved that only 347 have been completed in the Los Angeles area. Some of the regulations seem unnecessary to most, especially if the secondary unit will be used by family members. One of the new bills is overturning a restriction that required secondary units to have uncovered access to a public street. Since that is no longer a necessity, under the new rules, more property owners may find it economical again to take a crack at expanding into the territory of secondary units. Hopefully, the new legislation will help to solve problems for those trying to find housing as well as those trying to gain a little bit of extra income by providing the sought after housing.

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Disney Prices Soar Due to High Demand

Back in 1955, when Disneyland first opened its gates, the one-day admission price for an adult was $3.50. After inflation adjustment, that price would be about $31 today. While that admission price included only 8 ride tickets, extra tickets could be purchased for 35 cents each. To put that in perspective, If a visitor to the park wanted to go on every single one of Disneyland's original 38 rides, it would have cost about $65 in today's money, a stark contrast to the current admission price of $99. In his article, Michael Hiltzik of the L.A. Times investigates some of the reasons why Disney's prices have so greatly outpaced inflation.

Most recently was an increase in the price of Disneyland's unrestricted annual pass, from $779 to $1049. This nearly 35% increase has even the most loyal customers accusing Disney executives of greed, especially since very few new attractions have been added to the park which might help make visitors consider the raised price worthwhile. According to Hiltzik, however, the decision to raise prices is probably not greed-based. Hiltzik believes that Disney's reasons are far more logistic than economical.

Even though Disney's average price of $99 for admission may seem high, especially when measured against the inflation rate, Disneyland still has thousands of visitors per day, from Southern California as well as the rest of the country and the world. Unfortunately, since Disneyland is a park on a limited plot of land, they have a maximum number of guests they can accept at any given time. Sometimes, especially during summer and the holiday season, when people have time off of work and school, Disney has had to close its gates and turn away potential customers simply because it was at maximum capacity.

Hiltzik thinks that this may be why Disney is continuously raising prices to seemingly outrageous levels. Since the $99 cost doesn't seem to be enough to reduce demand, Disney may be raising prices in the hope that people will have to save up money longer and therefore not come to the park as often. While it is not Disney's intention to force customers away, when the park can only house a certain number of people without causing a fire hazard, it needs to find some way to reduce the demand while still maintaining income.

This demand-controlling measure, while upsetting many customers, is not likely to reduce demand as much as some might think, says Hiltzik. While Southern Californians, one of Disneyland's target demographics, may reduce their visits, analysts expect that tourists and other visitors will still bring in enough for Disney to make the same amount of money, if not more, than before while also preventing overcrowding. It's a win-win situation for Disney and for those who can afford the higher prices. As the prices go up, the amusement park will have fewer people, thus enabling visitors to be able to go on more rides and see more attractions without waiting in long lines.

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