MUBI has steadily become a powerhouse in arthouse film distribution, extending its influence beyond streaming. With the recent release of The Substance, the company has shown how it can acquire top-content horror films while reaching new audiences through diverse marketing strategies. In its fifth week in theaters, The Substance has grossed $13 million domestically and over $15 million internationally , making it MUBI’s highest grossing title to date. This success not only solidifies MUBI’s standing in high-quality independent horror but also revitalizes cult classics by reintroducing them to contemporary audiences with a renewed look.
A Worthy Competitor
    The Substance has made of MUBI a worthy competitor to Neon and to A24, which set record opening weekends this year with Longlegs and Civil War respectively. This achievement far from a struck of luck when acquiring the film before the Cannes Festival. This accomplishment reflects MUBI’s growth strategy over the last few years.
    As  the 2024 Variety VIP film industry report shows, MUBI ranks #2 in film festival acquisitions second only to Netflix. The number of acquisitions significantly increased ever since it bought The Match Factory back in 2022. As a production and sales company specializing in arthouse cinema with strong ties to major film festivals, The Match Factory has provided MUBI with a pipeline of high-caliber indie films. The acquisition has yielded three strategic benefits for MUBI:
    - First, MUBI’s acquisition of The Match Factory aligns well with its brand identity as a curated platform for art-house cinema, strengthening its appeal to its core niche audience.
    - Second, acquiring festival content elevates MUBI's visibility and prestige, establishing it as a serious player among arthouse peers with a competitive budget range. This positions MUBI to take advantage of A24’s expansion into larger projects. Such move is similar to Neon’s approach, which involves working with directors previously associated with A24 to build a distinct identity.
    - Third, this strategy broadens MUBI’s reach beyond its core audience, attracting new viewers who may be drawn to MUBI’s high-quality, critically acclaimed festival films. This expanded association with prominent titles enhances MUBI’s potential to attract subscribers, paving the way for higher-profile acquisitions that can drive subscriber growth.
A Potentially Extremely Viable Model
    On the financial side, acquiring The Match Factory sets MUBI apart from mainstream streaming platforms. As The Hollywood Reporter notes, “it’s the sales aspect of the purchase that pushes Mubi into waters not even traversed by the major streamers, creating a new and potentially extremely viable model in an age where indies are being squeezed out.” This dual role as a streamer and distributor could boost MUBI’s gross margins by reducing dependence on third-party acquisitions while smoothing revenue fluctuations through greater control over its content pipeline.
    The company financials reveal that, so far, it has made the right choice: Between 2023 and 2024, MUBI has demonstrated a steady progression in its financial performance, underlined by several key metrics. In 2023, MUBI's revenue increased by 5.54%, rising from $18.09 million in 2022 to $19.26 million, reflecting consistent subscriber growth even in a competitive market. A notable improvement in gross profit margin complemented this increase in revenue: gross profit grew from 62.27% to 74.35%, indicating enhanced cost management and a more effective pricing strategy. At the same time, MUBI successfully reduced its net losses, shrinking from $2.9 million in 2022 to $1.19 million in 2023—a promising trend toward profitability.
    Looking ahead, if MUBI sustains its growth rate, it could potentially reach $20.33 million in revenue by the end of 2024 FY, with prospects of achieving profitability by 2025. Realizing this potential will depend on how effectively MUBI leverages its unique position as a streamer, distributor, and production company, alongside its efforts to diversify its content or explore new markets.

THE REJUVENATING STRATEGY OF THE SUBSTANCE
    The Substance, specifically, showcases how MUBI is invigorating its content catalog while expanding its reach. Demi Moore played a significant role the movie's promotion—through appearances on The Drew Barrymore Show and many press interviews— which perfectly combined with the many TikToks on the film. Such combination has broadened its appeal across demographics, drawing in Millennials and Gen Z alike.
     In fact, one can see this strategy in the very film’s storyline. The film, focusing on Hollywood ageism, shows a longing for rejuvenation that crashes with a much more gooey and horrific reality where renewal is inseparable from monstrosity. Now, what is noteworthy here is that, just as the monstrosity of Elizabeth/Sue emerges from the remains of a former self, The Substance breathes new life into cult horror films. It creates new horror out of the still living “carcasses” of classic titles. The horror elements appeal not only to niche audiences but also to a broader viewer base. As The Substance revives films like Basket Case, The Shining, The Thing, Carrie, and Videodrome, just to name a few, it introduces these cult classics to younger generations through modern platforms like TikTok.

    “Long live the new flesh,” a quote from David Cronenberg’s body horror classic Videodrome brings a perfect image of what MUBI and The Substance are doing. Just as The Substance revives cult horror films by infusing with new life, MUBI’s unique position reshapes the streaming landscape, bridging classic horror with today’s viewers.
Back to Top