'We know all about you': MoviePass CEO brags that the popular app tracks users' location before and after they leave the cinema (but insists it doesn’t sell the data)

  • MoviePass is an app that lets users watch one movie a day at theaters in the U.S.
  • Called the 'Netflix for movie theaters,' the service has been gaining traction 
  • Now the firm is under fire after its CEO remarked at a conference that the app 'watches where users go,' including after they leave the theater and head home
  • The app collects a wealth of user data, including IP and home addresses, income 

A popular app referred to as the Netflix for movie theaters has been tracking user location before and after they leave the cinema.  

That's according to MoviePass CEO Mitch Lowe, who said at a recent industry conference that his company stores 'an enormous amount of information' about users.

This includes their home address, the makeup of their household and income, among other sensitive data.

'We know all about you,' Lowe told an audience at the Entertainment Finance Expo as part of a keynote speech called 'Data is the New Oil: How Will MoviePass Monetize It?'

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MoviePass CEO Mitch Lowe spoke at the Entertainment Finance Expo last week, where he discussed the company's user data collection practices. The talk raised some red flags

MoviePass CEO Mitch Lowe spoke at the Entertainment Finance Expo last week, where he discussed the company's user data collection practices. The talk raised some red flags

Lowe also explained how the app, which for $10 a month lets users watch one movie a day at theaters across the U.S., enables this tracking.

'It's not that we ask [for that information]. You can extrapolate that,' Lowe explained. 

'Then because you are being tracked in your GPS by the phone, our patent basically turns on and off our payment system by hooking that card to the device ID on your phone, so we watch how you drive from home to the movies'

'We watch where you go afterwards, and so we know the movies you watch,' he said.

He went on to detail what the company does - and doesn't - do with the information.

'...We don't sell that data,' Lowe said. 'What we do is we use that data to market film.'

Media Play News first reported the remarks.  

Despite Lowe's reassurances, the comments have raised some red flags among users and privacy experts.  

The app is upfront about the fact that it collects data on users when they check into a movie and arrive at a theater. 

However, the company's privacy policy seems to differ from some of Lowe's comments. 

Launched in 2011, MoviePass is referred to as the 'Netflix for movie theaters' and has been gaining traction. For $10 a month, users could watch one movie a day at theaters in the U.S. 

Launched in 2011, MoviePass is referred to as the 'Netflix for movie theaters' and has been gaining traction. For $10 a month, users can watch one movie a day at theaters in the U.S. 

According to MoviePass's website, the app requires access to a user's location when selecting a theater. 

But the company says this is a 'single request for your location coordinates,' which doesn't align with Lowe's remarks about the app tracking users before and after they leave the theater. 

The website also says the location data 'will only be used as a means to develop, improve and personalize the service.'

MoviePass also stores user data like IP addresses, email addresses, telephone numbers and payment histories, among other things. 

Since Lowe's comments were reported, MoviePass has issued a statement detailing its data collection practices. 

WHAT IS MOVIEPASS?  

MoviePass was launched by Mitch Lowe, who co-founded streaming giant Netflix

MoviePass was launched by Mitch Lowe, who co-founded streaming giant Netflix

MoviePass was launched in 2011 as a subscription-based ticketing service. 

For $10 a month, users can watch one movie a day at theaters across the U.S.

MoviePass is accepted at more than 90% of theater venues.

The service requires users to sign up for a MoviePass debit card, which is sent through the mail. 

Users then search for movies, theaters and showtimes using the MoviePass app. 

When they get to the theater, users are prompted to 'check in' at their location. 

This activates your MoviePass card, which admits you into the theater and your movie showing after you've picked up your ticket. 

The company recently topped 2 million subscribers to the app and expects to reach more than 5 million subscribers by 2019. 

 

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'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,' a MoviePass spokesperson told Engadget. 

'We will not be selling the data 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,' the spokesperson continued.     

A patent filed by MoviePass sheds some light on how the company may be experimenting with user location tracking. 

However, the tracking described in the patent is aimed at preventing fraud, not for improving movie marketing. 

The patent notes that the app could have a feature that verifies if a user is within 100 yards of a selected theater before activating a user's MoviePass card. 

That said, the patent doesn't describe many of the details described by Lowe at the conference.    

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