Latest / Small Business Success with Fexingo: Local Companies, Main Street Stories, and Community Commerce / How a Local Movie Theater Beat Streaming With a Cinema Membership
Transcript
- Lucas: You know, Luna, we talk a lot on this show about how Main Street businesses can compete with the big online players. But one of the toughest battles right now has to be the local movie theater going up against Netflix, Disney Plus, and the rest of streaming. Luna: Yeah, I remember reading that even before the pandemic, box office numbers were sliding. It feels like everyone has a home theater setup now. So what's a local theater to do? Lucas: Well, I found a great example in Ames, Iowa. A place called Main Street Cinema. It's a single-screen independent theater that's been around since the 1980s. And like a lot of small theaters, they were seeing attendance drop year after year. Then in early 2025, the owner, Jenny Chen, decided to try something different. Luna: What did she do? Lucas: She launched a membership program. Twenty-five dollars a month. For that, you get unlimited movies, twenty percent off all concessions, and early access to indie films and local premieres. It's basically their version of a streaming subscription, but for the physical theater. Luna: And that actually worked? I imagine it's a risky bet — you're basically trading a ticket sale for a flat fee. Lucas: It did work — better than anyone expected. Within six months, they had twelve hundred members. That's about one in ten households in Ames, by the way. And here's the kicker: average visits per member went from about two a month before the membership to five a month after. And concession revenue jumped sixty percent. Luna: Wow. So they're actually making more money on popcorn and soda than they might have on tickets alone. That's smart. Lucas: Exactly. The movies themselves are a loss leader. Jenny told me that the membership model shifts the focus from selling individual tickets to building a habit. People feel like they're getting a great deal, so they come more often and they bring friends. Luna: That kind of community feel is something streaming can't replicate. You can't high-five a stranger when a plot twist hits on your couch. Lucas: Right. And speaking of community, it's actually a similar idea to what we do here on the show. If you're someone who values these kind of independent stories — and keeping this podcast ad-free — you might be open to supporting us directly. We have a listener support page at buymeacoffee dot com slash fexingo. No pressure, but every little bit helps us keep doing episodes like this one. Luna: Yeah, it's a small gesture that makes a big difference. We appreciate anyone who chips in. Lucas: So back to Main Street Cinema. One of the clever details Jenny added was 'members only' events — like a Q&A with a local filmmaker, or a retro night where they show a classic and the whole audience votes on it. That builds loyalty beyond the transaction. Luna: That's smart because it creates a sense of exclusivity. People don't want to miss out. And it's something you can't get from a streaming algorithm. Lucas: Precisely. And the numbers back it up. The membership now accounts for about forty percent of their total revenue, and the average member spends more per month than a non-member ever did on tickets alone. It's a complete shift in the business model. Luna: I can see this working for other types of local entertainment too — like a comedy club, or a live music venue. The key is making the recurring benefit feel valuable enough that people commit. Lucas: Exactly. And Jenny's advice to other small business owners is start small. You don't need a full-blown app. Main Street Cinema uses a simple punch card plus a Facebook group for the early access. She says the tech doesn't need to be fancy — it just needs to feel personal. Luna: That's the takeaway, isn't it? Big chains have scale, but local businesses have trust and community. And a membership model can capitalize on that. Lucas: One more interesting data point: Jenny told me that membership churn is only about five percent per month. That's pretty low for a voluntary subscription. It tells you people really feel like they're getting value. Luna: And they're probably also supporting a local institution they don't want to lose. There's an emotional component. Lucas: Absolutely. So if you're a business owner listening, think about what you could bundle into a monthly offer. It doesn't have to be a movie theater. Could be a yoga studio, a bookstore, a bar. Find your version of the unlimited model. Luna: And maybe don't price it too low. Twenty-five dollars feels like a steal for unlimited movies, but it's high enough to be sustainable. Lucas: Right. Jenny actually raised the price from twenty dollars initially, and she barely lost any members. That tells you the perceived value is even higher. Luna: Great case study. Next time I'm in Ames, I'm checking it out. Lucas: Same here. Until next time, keep supporting your local Main Street.