Everyone knew the MoviePass deal is too good to be true — and as is so often the case these days, it turns out you’re not the customer, you’re the product. And in this case they’re not even attempting to camouflage that. Mitch Lowe, the company’s CEO, told an audience at a Hollywood event that “we know all about you.”
Lowe was giving the keynote at the Entertainment Finance Forum; his talk was entitled “Data is the New Oil: How will MoviePass Monetize It?” Media Play News first reported his remarks.
“We get an enormous amount of information,” Lowe continued. “We watch how you drive from home to the movies. We watch where you go afterwards.”
It’s no secret that MoviePass is planning on making hay out of the data collected through its service. But what I imagined, and what I think most people imagined, was that it would be interesting next-generation data about ticket sales, movie browsing, A/B testing on promotions in the app and so on.
I didn’t imagine that the app would be tracking your location before you even left your home, and then follow you while you drive back or head out for a drink afterwards. Did you?
Naturally I contacted MoviePass for comment and will update if I hear back. But it’s pretty hard to misinterpret Lowe’s words.
The startup’s plan is to “build a night at the movies,” perhaps complete with setting up parking or ordering you a car, giving you a deal on dinner before or after, connecting you with like-minded moviegoers, etc. Of course they need data to do that, but one would hope that the collection would be a bit more nuanced than this.
People clearly value the service, because it essentially lets them use someone else’s credit card instead of their own at the movies (and one belonging to a bunch of venture capitalists at that). Who would say no? Some people sure might, if they knew their activities were being tracked at this granularity (and, it has to be said, with such a cavalier attitude) to be packaged up and sold. (Good luck with the GDPR, by the way.)
Hopefully MoviePass can explain exactly what data it collects and what it does with it, so everyone can make an informed choice.
Update: In a statement, a MoviePass representative says:
We are exploring utilizing location-based marketing as a way to help enhance the overall experience by creating more opportunities for our subscribers to enjoy all the various elements of a good movie night. We will not be selling the data that we gather. Rather, we will use it to better inform how to market potential customer benefits including discounts on transportation, coupons for nearby restaurants, and other similar opportunities.
I’ve also asked for information on what location data specifically is collected, for how long before and after a movie users are tracked, and where these policies are disclosed to users.