Fandango CEO Will McIntosh on How Loyalty Programs, Pre-Ordering Concessions and Alternate Content Can Revive Moviegoing

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Fandango would like to be the one-stop shop for all things movies.

McIntosh, the CEO of our firm, contends that Fandango is no longer just a movie ticket seller; rather, it’s evolved significantly. Due to strategic acquisitions, it now boasts Rotten Tomatoes, a platform for film critic aggregation, and Vudu (renamed Fandango at Home), which deals in the digital sales and rentals of films. Moreover, customers can now pre-order concessions to avoid queues for popcorn and drinks, and the company has ventured into selling merchandise linked to new releases, such as the “Deadpool & Wolverine” friendship necklaces it marketed last summer.

McIntosh envisions the cinemas partnered with Fandango to embrace more creativity and unconventional approaches.

McIntosh notes that unlike other industries, movie theaters haven’t seen significant gains from technological investments. He arrived at Fandango in 2022 following his role overseeing NBC Sports Next, a collection of digital golf and youth sports platforms. He observes that numerous tech firms are assisting restaurants, real estate companies, and even golf courses, yet theaters are among the least technologically supported. This lack of investment has hindered their ability to enhance the customer experience.

McIntosh points out that only AMC has adopted Fandango’s concessions program up until now, a situation which seems to bother him. According to him, this technology encourages customers to spend more on snacks when they purchase them through the app. To date, Fandango has facilitated over $5 million in food and beverage sales for AMC.

McIntosh asserts that AMC’s ecosystem is performing better than their own direct sales channels. Over the Thanksgiving weekend, which was the busiest moviegoing weekend of last year with films like ‘Gladiator 2,’ ‘Moana 2,’ and ‘Wicked,’ AMC sold more than half a million dollars in concessions alone. If we consider that AMC has around 3,000 partners, this translates to potential food and beverage revenue of $2 to $3 million for the entire industry.

Fandango is marking its 25th anniversary at CinemaCon this week, an industry trade show in Las Vegas. However, the last five years of that 25-year period have been the most difficult in the company’s history. Initially, COVID forced cinemas to close for extended periods, and even as the pandemic eased, moviegoing was sporadic at best. To compound matters, a writers and actors strike in 2023 disrupted production, leaving cinemas with limited films to screen. This year, which was anticipated to bring recovery, has started poorly, with major releases like “Snow White” and “Mickey 17” failing to capture audiences.

McIntosh speaks candidly, stating, “Right now, we’re experiencing one of the most dismal Marches at the box office in history. It will be intriguing to find out what the weather forecast is like in Las Vegas when we convene with our associates.

McIntosh is confident that a change for the better is just around the corner, pointing out upcoming summer blockbusters such as “Jurassic World Rebirth” and “The Fantastic Four: First Steps,” along with “Avatar: Fire and Ash,” scheduled for release at Christmas. According to him, the lineup from May until the end of the year appears incredibly promising.

Nevertheless, he believes that both strikes and the pandemic have underscored the need for cinemas to not solely depend on studios to provide them with captivating movies each week, particularly when these studios are producing fewer films than usual. He advocates for movie theaters to step up and supply alternative content to fill this void, much like how many theaters offered special screenings of last summer’s Olympic Games opening ceremonies in Imax format.

McIntosh explains that historically, the success of this business has been heavily dependent on supply rather than demand. Essentially, if we have a hit movie at the weekend, it’s fantastic. But if we don’t, it can be disappointing because we need to generate our own demand. This could involve screening big college football games or concerts on our screens, or seeking out new content partners. We need to think creatively to find more opportunities for collaboration. If the theater is empty, there’s no income being generated.

Moving forward, McIntosh believes Fandango could make it easier for customers to choose from various entertainment options across cinemas, streaming services, and other platforms. In October, they introduced Fandango FanClub – a new membership program offering discounts on ticket purchases and additional perks. This initiative rapidly gained popularity among more than 50,000 customers.

McIntosh states, “That’s the program that will link everything seamlessly. At present, it’s primarily geared towards our theater business, but we aim to expand into home entertainment too. Our ultimate goal is to transform into an all-encompassing entertainment platform. Whether you’re planning a trip to the cinema or want to rent something for home viewing, or are unsure about your next binge-watch on one of your numerous streaming services, we have solutions for you.

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2025-04-02 03:19