For MovieTickets CEO Joel Cohen, expanding his online movie ticketing company's payment options has been a recent top priority.
Since 2000, MovieTickets has been one of the largest online movie ticketing websites in the US, representing an estimated 240 theater chains. MovieTickets earns revenue by sharing service fee proceeds with theater chains in exchange for managing an e-commerce process that includes accepting major credit cards as its individual theater partners allow.
However, consumers have begun to demand more alternatives such as Visa Checkout and MasterPass. With this in mind, MovieTickets was well positioned to expand its payment options to include bitcoin at the request of Open Road Films, the US distributor for independent film Dope, when its creative team sought to use digital currency as a promotional tool.
According to Cohen, although the idea of accepting a digital currency wasn't a priority, it ultimately led to new exposure for his brand. In total, MovieTickets.com now allows movie-goers to purchase tickets to films at more than 900 theaters around the US, and already the firm has seen "several hundred" transactions using bitcoin.
Cohen told CoinDesk:
MovieTickets is perhaps the most mainstream merchant to begin accepting bitcoin payments for some time, as enthusiasm for the use case has been hampered by less-than-expected user adoption of the technology as an e-commerce tool. The company uses GoCoin as a payment processor.
Cohen went on to suggest that, despite this narrative, the program "feels like a success" for MovieTickets, which he argues gained the ability to present itself as an innovative brand.
For now, Cohen doesn't see the number of movie theaters accepting bitcoin through his platform increasing, though he noted the company is "always bringing in new theater chains".
One issue holding back more widespread acceptance, Cohen said, was the steep education process MovieTickets had to engage in with its theater chain partners who ultimately dictate how its consumers can pay at checkout.
"One of our challenges as we embark on digital currencies is educating the 200-plus theater chains that we work with and getting everyone comfortable. They put the trust in us to accept valid payment options and many were unfamiliar with bitcoin, so it took us explaining what the currency was," he explained.
Cohen indicated that this matter was compounded by the lingering associations between digital currencies and illicit activity.
"The past understandings of bitcoin haven't always been positive," he added.
As for any use cases for the technology that would be applicable to the MovieTickets business model, Cohen said that the most interesting one was as an online payment method that could drive sales.
"We're always looking at always to drive ticket sales and it's a valid way of selling tickets, then it just works," Cohen said.
Cohen suggested that he does see a limited use for bitcoin at present, given that consumer adoption of the technology remains in its early stages.
However, he suggested that, over time, bitcoin could perhaps grow to be a more generally accepted payment method.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.