TVLY Membership

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Successful Business Membership Programs

AMC Theaters, Amazon, and GameStop are companies that have experienced success by instituting an optional paid membership program. Below is a deep dive of our findings on their membership costs & benefits and how their membership model help the company grow.

AMC STUBS MEMBERSHIPS (amc theaters)

OVERVIEW

MEMBERSHIP COST AND YEAR STARTED
  • The membership levels are Insider, Premiere, and A-List. An Insider membership is free; Premiere costs $15 a year; and A-List costs a monthly fee of $23.95 (valid at AMC's theaters throughout the US), $21.95 (valid in all states, except California, New York, New Jersey, Connecticut, and Massachusetts), or $19.95 (valid in all states except California, New York, Florida, New Jersey, Pennsylvania, Connecticut, Massachusetts, Colorado, District of Columbia, Delaware, Georgia, Maryland, Illinois, Minnesota, Virginia, and Washington).
  • AMC Stubs Rewards Program was launched in 2011 with only the Premiere membership. In 2016, they added the free tier program (Insider membership); and on June 26, 2018, the A-List program was launched.

WHAT MEMBERS GET THAT REGULAR CUSTOMERS DON'T:

HOW THE MEMBERSHIP HAS HELPED THE COMPANY GROW
  • When AMC Theaters launched the A-List program in June 208, they expected to hit 500,000 subscriptions a year after the launch; however, it only took them four and a half months to reach the half-million A-List member mark. At the end of 2018, they already had 600,000 A-list subscriptions; and as of February 2019, the company hit another milestone as they announced to have 700,000 A-List members.
  • The first quarter after the A-List program was launched, it boosted the attendance at AMC's theaters in the US by 8.6%.
  • This membership model did not turn regular customers away from business but instead help increase the number of full-paying or regular customers as 700,000 A-List members brought in 14 million theater attendance, which included family and friends of A-List members who purchased full-priced tickets.
  • In 2018, AMC credited 35.4% of their movie attendance in the US to their AMC Stubs members, and they expect to see this figure to continue to increase over the next 2 to 3 years.
  • The large database from their AMC Stubs members also provides the company helpful insights into their customers' movie preferences, which can be used for a more targeted marketing strategy.

AMAZON PRIME

OVERVIEW

MEMBERSHIP COST AND YEAR STARTED
  • Amazon Prime has three major plans: Prime Video, Prime Monthly, and Prime Annual. Prime Video only costs $8.99 a month, and Prime costs $12.99 monthly and $119 annually. In addition to these three plans, they also offer Prime Student, which offers students a six-month trial, courtesy of Sprint, and costs $6.49 per month after the trial. For customers who have EBT (Electronic Benefits Transfer) cards or a Medicaid card, they can get a discounted Prime membership for as low as $5.99 per month.
  • Amazon Prime was launched in February 2005 for $79 per year and subscribers were eligible for free two-day shipping in the US. The rest of the benefits were rolled out throughout the years. For example, in February 2011, Prime members were given access to 5,000+ TV shows and movies without any ads. Then in June 2014, Prime Music was announced, followed by Prime Photos in November of the same year.

WHAT MEMBERS GET THAT REGULAR CUSTOMERS DON'T:

HOW THE MEMBERSHIP HAS HELPED THE COMPANY GROW
  • Amazon Prime reached a significant milestone in 2018 when it's CEO, Jeff Bezos, announced that the company reached 100+ million Prime subscribers globally.
  • Research estimates that by this year, 53.1%, or 63.9 million, of American households will have Prime membership. Prime members spend more money on the website, averaging $1,400 per year, than non-members do, who only spend an average of $600 a year.
  • The longer Prime members keep their membership, the more they spend on the website. For example, Prime members who have had the subscription for more than three years spend about $1,500 per year.
  • The increasing number of Prime members increase the value of the website as a platform to companies that sell sponsored product listings and ads. The company's advertising operating income is expected to reach $16 billion by 2021.
  • Amazon reported having nearly $10 billion in revenue from subscription services in 2017.

GAMESTOP POWERUP REWARDS

OVERVIEW

MEMBERSHIP COST AND YEAR STARTED

WHAT MEMBERS GET THAT REGULAR CUSTOMERS DON'T:

HOW THE MEMBERSHIP HAS HELPED THE COMPANY GROW
  • The free program allows the company to use the generated data to market to this group more sensibly.
  • Pro members tend to spend as much as three times more than regular members.
  • The Rewards program plays a very important role in the company's success as 70% of the collectibles sales volume came from Pro members. This helps the company stave off the steep decline in revenues after store traffic continues to trend down.
  • The company's Rewards Program has 37 million members, and approximately 6.3 million have Pro memberships, which equates to an annual recurrence revenue of about $95 million.
  • This business model does not scare customers away, but instead helps establish a value proposition for the company by offering something not just to the gaming community, but also to the parents who bought the games for their kids.
Sources
Sources

Quotes
  • "The annual AMC Stubs Premiere Membership is $15. Membership fees are subject to taxation in accordance with applicable federal, state, provincial or local law. We may change the Membership fee at any time, but changes will apply only to new and renewal Memberships. "
  • "The fee is not refundable unless the Membership is canceled during the first thirty (30) days of the then-current one-year Membership term (including any renewal term), as described above in Paragraph 1(f). AMC Stubs Premiere Members may upgrade to the AMC Stubs A-List tier at any time with payment of the applicable Membership fee in effect at the time of upgrade."
Quotes
  • "A-LIST PLAN | MONTHLY MEMBERSHIP FEE | MAY BE USED AT AMC THEATRES IN THESE STATES * See Movies in All States $23.95 Valid for use in all AMC theatre locations in the US. * See Movies in 45 States $21.95 Valid for use in all AMC theatre locations in the US except for California, Connecticut, Massachusetts, New Jersey and New York. * See Movies in 35 States $19.95 Valid for use in all AMC theatre locations in the US except for CA, CO, CT, DE, DC, FL, GA, IL, MA, MD, MN, NJ, NY, PA, VA and WA."