MoviePass Competitor Cuts Rates to Be "Most Affordable" Plan on the Market

Sinemia's new plan costs $4.99 per month, down from $10.99 previously, which is about half what its famous competitor charges.

Sinemia, a MoviePass competitor well known in Europe but not in the U.S., said Friday it has slashed its prices to about half what its more famous competitor charges, though its subscribers still get nothing close to a movie ticket per day.

Sinemia's new plan costs $4.99 per month, down from $10.99 previously, which gets users a single ticket monthly, or $6.99 for two tickets. The company is marketing the products as "the most affordable and flexible plans ever."

Sinemia, though, is hoping that allowing subscribers to reserve tickets and seats in advance will be enough to encourage consumers to give them a try rather than MoviePass, which basically offers 30 tickets for the price of one but without frills, such as reservations.

Like MoviePass, Sinemia's new cut-rate options don't allow for 3D or Imax movies, though more expensive packages at Sinemia do, and MoviePass is working on such offerings as well.

Sinemia, founded four years ago, was in Canada, Turkey, Australia and the U.K. before it launched in the U.S. 11 months ago while also moving its headquarters to Los Angeles. Investors include 500 Startups and Social Capital.

Founder and CEO Rifat Oguz says the service is profitable elsewhere and he expects profits in the U.S. sometime next year. Unlike MoviePass, which has nearly 3 million subscribers, Sinemia will not share such numbers.

"Everyone asks if we will have the same deal as MoviePass, but I tell them I can't make any money if I do that," Oguz said.

Indeed, there are many skeptics who think MoviePass won't survive, considering it pays full price for the tickets its subscribers use, and they may use up to 30 of them per month for just $9.95.

Sinemia also pays full price for tickets and makes its money by marketing film titles to users and selling other advertising. Plus, similar to MoviePass, Sinemia users oftentimes do not use the service more than once per month, and sometimes not at all, while still paying the monthly fee.

"We are sustainable," Oguz said. "Our model is geared for flexibility. These are the functions people really want — they want to reserve tickets to see the new Avengers movie."