June 26, 2018
Shares of Helios and Matheson Analytics, parent of MoviePass, saw the stock price plummet 13% in early trading as AMC Theatres rolls out its ticket subscription service.
HMNY shares are trading around 25 cents as it struggles to sustain MoviePass’ business model enabling subscribers daily access to a theatrical screening for $9.95 monthly fee.
AMC contends such a program is unrealistic financially. Indeed, MoviePass spent $21 million monthly paying exhibitors such as AMC for tickets consumed by subscribers. That cost went up to $40 million in May – just as the summer movie blockbuster season begins.
AMC CEO Adam Aron, in a statement, said the chain’s AMC Stubs A-List subscription service – affording subs to three AMC movies weekly – is sustainable at $19.95 monthly.
He said there’s been “overwhelmingly positive response” since it began.