Strategic Movements: July 2018


Tim J. Smith, PhD
Founder and CEO, Wiglaf Pricing

Published July 30, 2018

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 founder and CEO of Wiglaf Pricing, an Adjunct Professor of Marketing and Economics at DePaul University, and the author of Pricing Done Right (Wiley 2016) and Pricing Strategy (Cengage 2012). At Wiglaf Pricing, Tim leads client engagements. Smith’s popular business book, Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies, was noted by Dennis Stone, CEO of Overhead Door Corp, as "Essential reading… While many books cover the concepts of pricing, Pricing Done Right goes the additional step of applying the concepts in the real world." Tim’s textbook, Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures, has been described by independent reviewers as “the most comprehensive pricing strategy book” on the market. As well as serving as the Academic Advisor to the Professional Pricing Society’s Certified Pricing Professional program, Tim is a member of the American Marketing Association and American Physical Society. He holds a BS in Physics and Chemistry from Southern Methodist University, a BA in Mathematics from Southern Methodist University, a PhD in Physical Chemistry from the University of Chicago, and an MBA with high honors in Strategy and Marketing from the University of Chicago GSB.