Fandango

[st.cronin]

How does their business model work? They charge a dollar so you don't have to wait in line at the theater? Does that make any sense?

Why would you use this service?

[JonInMiddleGA]

Have used it several times, usually in cases where it was more a concern about a particular movie selling out at a particular time. Most of the theaters I've used it with don't even have e-ticketing so you still have to go through the hassle of the line to redeem your Fandango purchase, so I'm not sure how much that even comes into play.

[BrianD]

Is the Fandango model the same as buying tickets online with Movietickets.com? I think that is what we use when we worry about a movie selling out. We print out the tickets, walk past everyone waiting in line and give the print-out to the ticket taker. If you absolutely have to see a movie right away, a buck isn't that much to pay.

[st.cronin]

I can sort of understand that - worrying about a movie selling out - but is that really that big of a problem? If somebody pitched this business idea to me, I would laugh out loud. It just seems like a no-potential idea.

[BrianD]

I can sort of understand that - worrying about a movie selling out - but is that really that big of a problem? If somebody pitched this business idea to me, I would laugh out loud. It just seems like a no-potential idea.

It is a problem for the first few showings of really big movies. I remember some big movie recently (Spider Man 3?) was sold out of every showing around herthrough Sunday, but that was an exception. Blockbusters seem to sell out on Saturday and Sunday.

In general I would think that the costs for something like this would be pretty low...aside from the advertising they do.

[stevew]

I can sort of understand that - worrying about a movie selling out - but is that really that big of a problem? If somebody pitched this business idea to me, I would laugh out loud. It just seems like a no-potential idea.

I think it's more for larger cities like NYC. If you have to structure your trips a certain way, via train, it's probably a ton easier to know you have tickets ahead of time vs. having to leave potentially a lot earlier to get them. Also some theatres have special reserved seating(couch types, et al), which would be a lot easier to pay for ahead of time as well.

[stevew]

dola

Some theatres around here still didn't take plastic for the longest time.

[Atocep]

I can sort of understand that - worrying about a movie selling out - but is that really that big of a problem? If somebody pitched this business idea to me, I would laugh out loud. It just seems like a no-potential idea.

If I see a movie the weekend its released, I'll usually buy the tickets online. It sucks to get to the ticket counter and find out the showing you were wanting to see is sold out and then having to find something to do until the next showing.

For me, the couple bucks I end up paying is worth it.

[BrianD]

I think it's more for larger cities like NYC. If you have to structure your trips a certain way, via train, it's probably a ton easier to know you have tickets ahead of time vs. having to leave potentially a lot earlier to get them. Also some theatres have special reserved seating(couch types, et al), which would be a lot easier to pay for ahead of time as well.

I would love to see theaters with more reserved seating. I saw one of the Harry Potter movies in London and ever seat was assigned. I thought it was pretty cool.

[cthomer5000]

How does their business model work? They charge a dollar so you don't have to wait in line at the theater? Does that make any sense?

Why would you use this service?

I use this service when the $1 per ticket in particular is worth me than me getting to the theatre, being pissed off about a sellout, and having to come back home. Like Jon, i only use it in situations where i'm at least moderately concerned about a sellout.

[st.cronin]

Here is a business model that would make sense to me:

For the blockbusters, charge a service fee. 2 dollars or 1 dollar or 5 dollars or whatever the market will bear. Charge the moviegoer.

For the non-blockbusters, charge the theater the service fee.

[stevew]

It would make more sense if blockbuster movies cost more for tickets than small no budget ones too, but that ain't happening either.

[BrianD]

What does the theater get in return for the service fee?

[Celeval]

I imagine their business model also includes advertising and deals with the various theatres - fandango was the go-to spot for movie times when we were in MD, as all the closest theatres were listed there.

[st.cronin]

What does the theater get in return for the service fee?

More people paying 8.75 for popcorn and soda.

[Swaggs]

I would guess that Fandango gets a per sale fee from the theatre, as well. They are also, potentially, pulling the old gift card-like profit, where probably only 90% or less of people that buy the tickets end up using them.

[BrianD]

More people paying 8.75 for popcorn and soda.

Does that service fee to the theater mean cheaper prices for the customer than a walk-up customer would pay?

[st.cronin]

Does that service fee to the theater mean cheaper prices for the customer than a walk-up customer would pay?

I was thinking that it would cost the same, but that the service fee that fandango now charges the ticket buyer, would instead get paid by the theater. So the transaction would look like this: Customer pays fandango price of ticket, fandango buys ticket from the theater, theater pays fandango for selling the ticket.

But, as stevew points out, there's no reason for theaters not to be more flexible in their pricing.

[BrianD]

I was thinking that it would cost the same, but that the service fee that fandango now charges the ticket buyer, would instead get paid by the theater. So the transaction would look like this: Customer pays fandango price of ticket, fandango buys ticket from the theater, theater pays fandango for selling the ticket.

But, as stevew points out, there's no reason for theaters not to be more flexible in their pricing.

I guess I'm not sure why the theater would be interested in doing that. Fandango probably doesn't draw more people to the theater, so they don't really provide a service to the theater. The sole benefit seems to be convenience for the customer.

[stevew]

I believe it was a Mark Cuban blog I was reading a few months ago and he was talking about how much of a drag it is for the Theatres to use the newspaper to advertise show times. Especially in large markets, supposedly those rates continue to increase in such a rapid manner, and definitely hurt the theatre's bottom line. So the Theatres themselves probably hope that more people will use fandango and like services, just cause over the next 10-20 years it may finally completely wean people away from checking the newspapers for showtimes altogether.

[st.cronin]

I guess I'm not sure why the theater would be interested in doing that. Fandango probably doesn't draw more people to the theater, so they don't really provide a service to the theater. The sole benefit seems to be convenience for the customer.

They may not be interested at a dollar a ticket, but there must be some pricepoint at which they would be interested - a penny a ticket, perhaps? Or suppose that buying a ticket from fandango got you a dollar off popcorn or something... it just seems to me there's not a lot of imagination put into this idea.

[cthomer5000]

I guess I'm not sure why the theater would be interested in doing that. Fandango probably doesn't draw more people to the theater, so they don't really provide a service to the theater. The sole benefit seems to be convenience for the customer.

Yeah, if i were the theatre I would certainly argue that Fandango doesn't actually bring people to the theatre that weren't going to come anyway.

I think the only people the theatre might lose is people who walk in, see a sell out, then cancel all plans to attend a movie. This has to be a a VERY low percentage of people.

[BrianD]

They may not be interested at a dollar a ticket, but there must be some pricepoint at which they would be interested - a penny a ticket, perhaps? Or suppose that buying a ticket from fandango got you a dollar off popcorn or something... it just seems to me there's not a lot of imagination put into this idea.

If theaters did this, they would be rewarding people for buying tickets online. I would think that theaters would prefer people not to buy tickets online. If customers buy tickets at the theater, there is the chance that they will see their second choice if the first choice is sold out (since they are already there anyway). If you try to buy online and see a sell-out, you probably wouldn't make a second choice.

[Vinatieri for Prez]

dola

Some theatres around here still didn't take plastic for the longest time.

We still have one theater here that takes cash and cash only. No debit, credit, or checks taken.

I could see high volume in big cities with virtually no overhead being succesful. Obviously, it has. I'd also be interested to see if they get more than a dollar. Perhaps, the theater takes less than full admission because they resell the ticket right at showtime?? I have no idea how that process works. Or perhaps its financed by the movie theaters, so it's just a way to make an extra buck over and above their regular admission.

[Fouts]

Group purchases? We used one of the online services to buy tickets for a group of us from work to make sure we all got into the same movie.

[JonInMiddleGA]

http://www.fandango.com/content/pdf/QuickFacts.pdf

Fandango was formed in 2000 by seven of the 10 largest movie exhibitors in the U.S. The goal was to create a company that would make the movie-planning and moviegoing experience more convenient and fun for consumers. These exhibitors continue as both partners and investors in Fandango.

In other words, the theaters have basically been just shifting money from their left pocket to their right pocket.

However, http://www.fandango.com/ShowPressRelease.aspx?id=102

They've now been bought out by a division of Comcast ... meaning it'll likely be FUBAR sooner rather than later.

[st.cronin]

That explains everything.

[stevew]

from the site...

Fandango's founding partners include the nation's leading exhibitors: Carmike Cinemas, Century Theatres, Cinemark Theatres, Edwards Theatres, Regal Cinemas and United Artists Theatres. Additional partners include AMC Theatres, American Cinematheque, Brenden Theatres, CineArts Theatres, Cineplex Odeon Cinemas, Cobb Theatres, Colorado Cinemas, Crown Theatres, Flagship Theatres, Galaxy Theatres, Kerasotes Theatres, Majestic Crest Theatre, R/C Theatres, Signature Theatres, Wallace Theaters and Wehrenberg Theatres.

[stevew]

shit, beat by 3 minutes.

[SackAttack]

Like Jon, my use of Fandango is *generally* for when I want to see a specific showing and am afraid it may sell out.

Also, it works the other way: if the tickets aren't available when I try to order through Fandango, I know not to bother driving down to the Edwards at the mall.

Sometimes, though, it'll be an issue of "Oh, hey, I want to go see that movie," and it's sufficiently close to curtain time that I don't want to risk there being a line at the theater. I can order, print out, and skip that.

Basically, if it's going to sell out, or if it's a seat-of-my-ass type viewing, I'll use 'em.

If I were to decide tonight that I want to go see a movie tomorrow, I might use Fandango to see what's showing, but I would probably buy my ticket at the box office proper.

[BrianD]

I use Movietickets.com, and thus go to AMC theaters only, and it is actually cheaper than buying at the theater. It's the reason I chose them over using something like Fandango.

Cheaper than at the theater? I just did a check at that site and found tickets for the same price plus a $1 service charge per ticket.

[MrBigglesworth]

Yeah, if i were the theatre I would certainly argue that Fandango doesn't actually bring people to the theatre that weren't going to come anyway.

I think the only people the theatre might lose is people who walk in, see a sell out, then cancel all plans to attend a movie. This has to be a a VERY low percentage of people.
Where I live, I have about 7 or 8 movie theaters nearby. I go to Fandango to find the theater that has the most convenient time. If its not on Fandango, I don't go. I don't always buy tickets through Fandango if I go to the movie though, so I would think that theaters would be willing to give more to Fandango for each ticket sold through them than the one ticket sold is worth to them. For example, if the advertising cost of one ticket is ten cents, but only one in ten people that buy a ticket to that theater because of Fandango actually buy it through Fandango, then I would be willing to give a dollar a ticket.

[Vinatieri for Prez]

We still have one theater here that takes cash and cash only. No debit, credit, or checks taken.

I could see high volume in big cities with virtually no overhead being succesful. Obviously, it has. I'd also be interested to see if they get more than a dollar. Perhaps, the theater takes less than full admission because they resell the ticket right at showtime?? I have no idea how that process works. Or perhaps its financed by the movie theaters, so it's just a way to make an extra buck over and above their regular admission.

Damn, I am just way too smart. I knew the answer without even knowing it. :)

[JeeberD]

I believe it was a Mark Cuban blog I was reading a few months ago and he was talking about how much of a drag it is for the Theatres to use the newspaper to advertise show times. Especially in large markets, supposedly those rates continue to increase in such a rapid manner, and definitely hurt the theatre's bottom line. So the Theatres themselves probably hope that more people will use fandango and like services, just cause over the next 10-20 years it may finally completely wean people away from checking the newspapers for showtimes altogether.

People still check movie times in the newspaper? I couldn't tell you the last time I did that...Movies.com is the way to go.

Of course, living in a large city makes checking the newspaper more difficult and time consuming than on-line. If I still lived in Abilene I suppose I still might be using the paper...