Tag: AMC Stubs A-List

AMC Says ‘A-List’ Ticket Subscription Service Turns First Profit

AMC Theatres Feb. 27 disclosed that its Stubs A-List movie ticket subscription service was profitable for the first time in the fourth quarter, ended Dec. 31, 2019.

The service, launched in June 2018 as a competitor to now-shuttered MoviePass, charges subs $19.95 a month (or $21.95, or $23.95 a month in various regions of the country) enabling subs access to three theatrical screenings per week. The service ended 2019 with more than 900,000 monthly subs.

The world’s largest exhibitor attributed the subscription service’s profitability to a 10% membership price increase in 10 states and a 20% price increase in five states implemented a year ago.

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With the average A-List sub frequenting screenings 2.4 times monthly, the chain said that by factoring in a sub’s full-price bring-along guest, food and beverage spending, it contends the program was profitable in the fourth quarter and year’s end, compared to if the program had not existed.

“A-List membership levels and contributions continue to exceed our expectations,” CEO Adam Aron said in a statement.

AMC ended 2019 owning, operating, or having interest in 636 theaters in the U.S. and 368 theaters internationally.

“We are very pleased to have delivered another quarter of strong results to finish 2019,” Aron said. “Despite the U.S. industry box office declining 1.6% in Q4, AMC grew revenue 2.4%.”

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At the same time, AMC ballooned it fiscal loss after posting a profit in the previous-year quarter and fiscal year.

Indeed, AMC posted a net loss of $13.5 million in the quarter, compared to income of $170.6 million in the previous-year period. For the fiscal year, AMC posted a loss of $149 million compared to a profit of $110 million in 2018. AMC attributed much of the loss to impairment charges.

Regardless, U.S. attendance in the quarter dropped 4.4% to 62.3 million from 65.2 million. For the year, attendance declined 2.1% to 250 million from nearly 256 million in 2018. Noteworthy considering the attendance declines pre-dated current concerns around the spread of the coronavirus, which could wreak havoc for public venues such as movie theaters.

 

Transactional Movie Marketing: How Big is Your Fan Base?

On Oct. 15, AMC Theatres — the world’s largest movie exhibitor — launched “AMC Theatres On Demand,” a transactional platform enabling its A-List members to purchase or rent studio (notably Paramount, Lionsgate) movies in the home on their retail release.

Key to AMC’s push into home entertainment is the exhibitor’s leverage of its 19-million Stubs A-List loyalty membership base in the same way Amazon Prime entices more than 100-million Prime members with access to movies, TV shows and third-party SVOD services via Prime Channels.

As the retail market embraces transactional VOD and electronic sell through in place of DVD and Blu-ray Disc, media companies are using pre-existing customer loyalty to jumpstart digital success.

When packaged-media kiosk operator Redbox launched Redbox Digital in 2017, its initial marketing thrust was to its 27 million Redbox Perks members.

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Indeed, Redbox claims that nearly half (48% ) of all Americans find out what’s new in home entertainment from its kiosks. The company recently enhanced the Perks program to reward members for each rental night instead of per title.

“The updated loyalty program increases the value of each Redbox experience,” Ash Eldifrawi, chief marketing and customer experience officer at Redbox, said at the time.

Last spring, Fandango launched a loyalty-rewards program — Fandango VIP+ — offering monetary credits for every four movies tickets purchased on its platform. VIP members also have 21 days to use their credit to stream movies and TV shows on FandangoNow.

“We needed to seed the system … to give customers an array of options to redeem their points,” Fandango chief marketing officer Adam Rockmore said in an interview.

While Fandango has not released data on VIP+ signups, Michael Pachter, media analyst at Wedbush Securities in Los Angeles, believes AMC has the upper hand.

“AMC may have a competitive advantage over Fandango and others delivering in-home entertainment given the reach of its rewards program, loyalty of millions [of] A-Listers and studio partnerships,” he wrote in a note. “We see little downside to AMC’s new on-demand offering, given its reach to loyal customers.”

Then again, FandangoNow is part of Movies Anywhere, the movie marketing platform (supported by Warner Bros., Sony Pictures, Universal Pictures, Disney/Fox) directing its 8 million registered users to buy and rent titles from its retail partners, which include Apple iTunes, Prime Video, Walmart’s Vudu, Comcast’s Xfinity Store, Google Play, Microsoft Movies & TV — and just recently: Verizon.

Regal Cinemas Launches Subscription Ticket Service

As expected, Regal Cinemas July 28 unveiled a branded subscription plan — Regal Unlimited — exclusively available as a mobile app and starting at $18 a month.

Consumers can choose from three different plans based on theater location with the aforementioned Regal Unlimited plan available at more than 200 theaters.

The upgraded Regal Unlimited Plus plan ($21) is valid at more than 400 theaters, while the Regal Unlimited All Access pass ($23.50 per month) is good nationwide.

While the pricing is comparable to AMC Theatres Stubs A-List plans ($21.95 to $23.95), Regal’s service does not limit subs to three screenings weekly as does AMC.

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The new service comes as ticket subscription pioneer MoviePass has suspended service indefinitely as it grapples with a business model that is not aligned with an exhibitor and thus hemorrhages money.

Regal subscribers can watch as many standard format movies as they want. There are no blackout dates, and advance tickets can be acquired as soon as they go on sale.

For special formats, subs can upgrade their ticket to VIP, ScreenX, 4DX, Imax, RPX and 3D, by paying the usual standard upcharge.

Moviegoers who sign up for Regal Unlimited will be automatically enrolled in the Regal Crown Club program. Through the Regal Crown Club, members accumulate credits at the box office and concession stand to earn rewards, including free popcorn, soft drinks, movies and merchandise.

“This is the [subscription] program moviegoers have been craving,” Ken Thewes, chief marketing officer at Regal, said in a statement.

Regal Unlimited subs get a 10% concessions discount on all food and non-alcoholic beverages — as well as a free large popcorn and large drink on their birthday.

Along with all the Crown Club benefits, subs earn credits for every dollar spent, including the opportunity to attend advance screenings.

“Regal Unlimited is the best value option for movie fans,” said Kelly Hawkins, VP of loyalty at Regal.

AMC Theatres Subscription Ticket Service Tops 800K Members

AMC Theatres May 20 announced its branded Stubs A-List subscription ticket program now tops 800,000 moviegoers — an increase of 200,000 members in 2019.  The number make the service the No. 1 service in North America, and well ahead of its one-year target of 500,000 members by June 26.

“We believe we’ve cracked the code to make this concept successful for AMC, our shareholders, our studio partners and most importantly, our guests,” CEO Adam Aron said in a statement.

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The milestone comes after the world’s largest theatrical exhibitor reported a net loss of $130.2 million compared to profit of $17.7 million in its most-recent fiscal period. Revenue dropped 13.2% to $1.2 billion.

Indeed, AMC contends the service contributing to the bottom line as A-List members bring friends and family with them to the movies.

Launched in 2018, $19.95 Stubs A-List affords subscribers up to three movies per week, in every available AMC showtime and format, including “Imax at AMC,” “Dolby Cinema at AMC,” RealD 3D and “Prime at AMC.”

Stubs A-List subs have the same privileges as AMC Stubs Premiere members, including free upgrades on popcorn and soda, free refills on large popcorn, express service at the box office and concession stand, no online ticketing fees and 100 points for every $1 spent on the monthly Stubs A-List fee, tickets purchased for friends and family, and food & beverage spending at AMC.

AMC Stubs Premiere and A-List uers receive a $5 reward for every 5,000 points earned, which translates to a 10% credit toward future AMC purchases.

 

MoviePass Rival Sinemia Ceases Operations

Sinemia, the MoviePass competitor offering subscribers access to theatrical screenings for a $4.99 monthly fee, has ceased operations about a year after launching.

The Los Angeles-based service had attempted to piggyback on the initial success of MoviePass affording subscribers daily access to a theatrical screening for flat $9.95 monthly fee.

“Today, with a heavy heart, we’re announcing that Sinemia is closing its doors and ending operations in the U.S. effective immediately,” the service wrote April 25 on its website.

Launched by Turkish native Rifat Oguz, Sinemia sought to circumvent loss-leader pricing through up-front annual billing with revenue sharing with exhibitors.

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The service offered a two-ticket plan priced at $6.99 monthly (also billed annually); $9.99 for two tickets, including 3D, 4D and Imax formats; and $14.99 for three tickets, including 3D, 4D, Imax formats.

The strategy differed from MoviePass, which has attempted to circumvent exhibitors through a populous approach — with disastrous fiscal results.

The service’s parent, Helios Matheson Analytics, had its stock delisted by Nasdaq after investors fled MoviePass following tens of millions of dollars in quarterly losses due to an unsustainable business model, uncooperative exhibitors and frequent user policy changes, among other issues.

MoviePass reportedly has little more than 200,000 subscribers after once topping 3 million.

Meanwhile, AMC Theatres, the nation’s largest exhibitor, launched its own subscription service, AMC Stubs A-List, which earlier this year reached 700,000 subs paying $20 monthly fee.

Sinemia alluded to A-List for its decision to shut down.

“We are all witnessing that the future of moviegoing is evolving through movie ticket subscriptions,” Sinemia said. “However, we didn’t see a path to sustainability as an independent movie ticket subscription service in the face of competition from movie theaters as they build their own subscriptions. Thanks to the cost advantage and cross-sell opportunities, movie theaters will be prominent in the movie ticket subscription economy.”

MoviePass Reportedly Sinks to 225,000 Subscribers

MoviePass, the fiscally-challenged theatrical ticket subscription service, has reportedly shed about 90% of its peak of more than 3 million subscribers from June 2018.

According to BusinessInsider, which cited internal data obtained from the former high-profile service, MoviePass has generated just 13,000 new subs since launching an “uncapped” plan in February affording subs daily access to a theatrical screening for $9.95 monthly fee.

The new plan, which was a reboot of a previous price point that attracted 100,000 subs in 48 hours after launching in 2017, also enables MoviePass to throttle frequent users.

MoviePass owner Helios and Matheson Analytics disputes the subscriber tally, calling the data “incorrect” without elaboration.

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Regardless, the MoviePass business model paying exhibitors face value for every movie ticket consumed by subscribers remains financially unsustainable.

The service hemorrhaged hundreds of millions of dollars, sending HMNY stock into a nosedive. Company shares were delisted from Nasdaq earlier this year.

Stacy Spikes, who co-founded MoviePass in 2011, sold it to HMNY in 2017 and was fired from the company in 2018, told BusinessInsider the $9.95 price point was never intended to be permanent.

“[It was] thought of as a promotional thing, in a way celebrating HMNY buying us. But we hit 100,000 [subs] in 48 hours. So I’m like, ‘OK, turn it off. We reached our goal,’” Spikes said.

The executive concluded that $12.99 was the least MoviePass could charge, while a $75 option including Imax and 3D screenings was considered as well.

“But the overriding voice [at HMNY] was, ‘No, this is awesome, look how fast we’re growing.’ And it was this moment of ‘but $10.’ It doesn’t fly. Now the plane is falling,” Spikes said.

In fact, when HMNY CEO Ted Farnsworth and MoviePass CEO Mitch Lowe were photographed joyfully in front of an AMC Theatre on Times Square after surpassing 1 million subs, Spikes had a different reaction.

“That photo changed [MoviePass’] relationship in the marketplace,” he said. “The tone turned it more adversarial [with exhibitors]. Up to that point, MoviePass had been the underdog champion for going to the movies.”

Indeed, AMC Theatres, which had initially been supportive of MoviePass under CEO Gerry Lopez, became increasingly less so under new CEO Adam Aron.

Aron made it a point to repeatedly question the MoviePass business model on fiscal calls and in press releases – despite generating millions in revenue from MoviePass subs.

Last year AMC launched the AMC Stubs A-List subscription service, which has generated about 700,000 subscribers paying $19.95 monthly for access to three screenings weekly in any format.

AMC recently raised prices to $21.95 or $23.95 depending on the market subscribers live in.

Spikes says the initial success of MoviePass, AMC Stubs A-List and Cinemark’s service underscores market demand for a subscription business model.

“The good side was cinema had not been taken seriously since Netflix really got its footing,” he said. “So what I liked about that was this had risen to the zeitgeist of conversation. Seventy-five percent of [MoviePass] members were under the age of 26. Cinema was an event people cared about again. So while there is a sadness around the brand, I was happy to see that this is front and center.”

Atom Tickets Seeks to Work with Exhibitors Rolling Out Subscription Platform

Online ticket platform Atom Tickets announced a new service, Atom Movie Access, enabling exhibitors to develop custom theatrical ticket subscription plans for consumers.

The move represents an effort to incorporate movie theaters with the consumer-popular concept of ticket subscriptions, while not alienating exhibitors as was done by subscription pioneer MoviePass.

MoviePass has cited fraudulent use of its $9.95 monthly subscription – not a flawed business model – for the service’s fiscal challenges.

App-based Atom Movie Access affords exhibitors the ability to offer subscribers reserved seating, pre-order concessions, invite friends via social media and check-in using portable media devices.

“We’ve always believed in being a valuable partner to exhibitors, starting with the core functionality of our app, which allows for marketing promotions at specific locations and integrating exhibitor loyalty plans,” Matthew Bakal, co-founder of Atom Tickets, said in a statement.

The service, which is co-owned by Lionsgate, Disney/Fox and Fidelity Management & Research Co., also offers backend support, including payment transactions, customer service and fraud detection.

“Atom Tickets is an innovative ticketing platform that enables exhibitors to reach and engage new and incremental audiences,” Bakal said.

 

AMC Theatres Ticket Service Tops 700,000 Subscribers

AMC Theatres said its Stubs A-List subscription ticket service added 100,000 subscribers in January and February to increase its membership base above 700,000.

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AMC Theatres launched A-List (priced from $19.95 monthly) on June 26, 2018 and was originally expected to hit 500,000 members 12 months after launch. Membership includes access up to three movies per week, in every available AMC showtime and format, including Imax at AMC, Dolby Cinema at AMC, RealD 3D and Prime at AMC.

AMC said its conventional Stubs A-List membership program has totaled 14 million attendees, including the purchase of traditionally-priced tickets for family and friends.

AMC Stubs Premiere and A-List members receive a $5 credits for every 5,000 points earned, which translates to a 10% credit toward future AMC purchases.

“With every passing milestone, Stubs A-List is proving to be a huge benefit to our guests, our studio partners and our shareholders,” CEO Adam Aron said in a statement. “Members are watching more movies than they did before A-List was created, and they’re bringing their friends and family members along, who are paying for their tickets at full price.”

 

AMC Theatres Stubs A-List Subscription Ticket Service Tops 600,000 Members

AMC Theatres Dec. 26 announced that its Stubs A-List subscription ticket service has surpassed 600,000 subs since launching six months ago. The nation’s largest theatrical chain had expected to reach 500,000 A-List members after 12 months.

The $19.95 monthly service (which increases to $23.95 on Jan. 9, 2019 at AMCtheatres.com and AMC Theatres app) bowed on June 26 in response to rival service MoviePass.

The service affords members upwards of three movies per week, in every available AMC showtime and format, including Imax at AMC, Dolby Cinema at AMC, RealD 3D and Prime at AMC.

A-List subs also get the discounts and benefits of AMC Stubs Premiere, including free upgrades on popcorn and soda, free refills on large popcorn, express service at the box office, concession stand, and 100 points for every $1 spent for the AMC Stubs A-List monthly fee, tickets purchased for friends and family, and food & beverage spending at AMC.

AMC Stubs Premiere and A-List members receive a $5 virtual reward for every 5,000 points earned, which translates to a 10% credit toward future AMC purchases.

CEO Adam Aron said the success of A-List contributed to Hollywood’s record $11.4 billion domestic 2018 box office.

“What an incredible 2018 for AMC Theatres and our AMC Stubs A-List members,” Aron said in a statement. “To exceed our one-year goal of 500,000 members in 4 ½ months, then add another 100,000 members in the last six weeks of the year is astounding. We remain extremely excited about what’s to come.”

 

 

MoviePass Looking to Raise Prices, Restore Consumer/Investor Trust

MoviePass, the beleaguered theatrical ticket subscription service, is set to roll out new monthly pricing plans it hopes will financially stabilize the service and restore investor confidence in corporate parent Helios and Matheson Analytics, among other goals.

In an interview with Variety, MoviePass CEO Mitch Lowe said the new tiered pricing plans – ranging from the existing $9.95 to $24.95 – would be dependent on where subscribers lived.

As a result, consumers living in rural areas would likely see no change to the $9.95 fee (dubbed “select”) affording access to three movies per month at select times, while moviegoers in major markets such as Los Angeles and New York would pay $14.95.

A $19.95 “red carpet” option – which mirrors the fee of a competing service from AMC Theatres – enables rural subscribers access to three screenings at any time in any format (Imax, 3D, 2D). The option costs $24.95 in major cities.

“We have a lot to prove to all our constituents,” said Lowe. “We don’t just have to prove ourselves to our members, we also have to prove ourselves to the investment community, our employees, and our partners.”

Indeed, the service’s well-chronicled missteps largely revolved around an unsustainable business model that paid exhibitors full price for every ticket consumed by subscribers paying less than $10 per month for daily access to a theatrical screening.

With MoviePass unable to convince exhibitors to share in the financial risk in return for enhanced foot traffic and sharing user data – the latter triggering data breach concerns – the service began to hemorrhage money and alienate consumers and investors.

In HMNY’s most-recent fiscal report, the company reported a loss of $137 million and just $6.2 million in cash available. The parent’s stock is worth pennies and in risk of being delisted by Nasdaq – despite a reverse-stock split last summer. A planned second reverse-stock split was abandoned after failing to generate enough shareholder approval.

“Expectations weren’t met,” said Rodes Ponzer, head of marketing. “The creative memes and the consumer vitriol, we understand it. We told customers [theatrical access] was un-limited and we didn’t meet their expectations. Now we’re going to set their expectations properly.”