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.”

 

Report: MoviePass Parent Expected to Delist

With its stock flatlining at a penny per share, Helios & Matheson Analytics — parent of fiscally-challenged theatrical ticket service MoviePass — is expected to delist from Nasdaq.

Bloomberg, citing market data, said HMNY could delist as early as the end of the business day on Feb. 12 — resuming trading as an over-the-counter stock.

HMNY spun-off MoviePass in January in an attempt to jumpstart investor confidence after the pioneering $9.95 monthly over-the-top ticket service resonated with consumers at the expense of a stable business model.

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Successive fiscal quarters generated fiscal losses in the hundreds of millions, compounded by the launch of a competing ticket service from AMC Theatres that resulted in a free-falling HMNY stock.

While MoviePass Films continues to produce low-budget movies, MoviePass took another PR hit when Variety reported that a senior executive recently hired to help turn the service around had been charged in 2010 with stealing thousands of dollars from a previous employer.

MoviePass Parent Schedules Second Reverse-Stock Split Vote

Helios and Matheson Analytics, parent of fiscally-challenged theatrical subscription ticket service MoviePass, Jan. 30 announced it plans to hold a special shareholder meeting March 15 in Los Angeles to vote on a second reverse stock split.

The proposed one-share-for-500 shares, which if passed would affect shareholders of record on Jan. 16, follows a previous reverse stock split (1-for-250 shares) eight months ago.

That split resulted in the HMNY stock briefly reaching $22.50 per share, before plummeting below Nasdaq’s $1 minimum threshold in less than a week. HMNY’s stock currently trades at about a penny.

The company in November canceled a vote for the second split after it couldn’t muster enough shareholder support. Apparently that sentiment has changed.

HMNY has until the summer to regain compliance or face the risk of delisting.

 

 

MoviePass Looking to Market Ticket Subscription Technology to Theaters

MoviePass, the beleaguered subscription theatrical ticket service, is looking to market its technology to exhibitors.

Dubbed a “red label” solution, the strategy is to enable theater owners a means of offering a proprietary subscription ticket service to consumers.

In addition to MoviePass, AMC Theatres and Cinemark currently offer monthly ticket subscription plans.

“Our new business strategy is stabilize, optimize and grow,” Khalid Itum, EVP of MoviePass, told Variety, which first reported the move.

MoviePass in August 2017 turned the exhibition service on its ear offering a $9.95 monthly service that enabled subscribers daily access to a theatrical screening.

While the loss-leader pricing concept resonated with millions of consumers, paying for it proved to be a debacle for MoviePass and its corporate parent Helios and Matheson Analytics (HMNY).

With the service hemorrhaging hundreds of millions of dollars, it has introduced seesaw measures to rein in costs, alienating consumers in the process.

MoviePass now charges from $9.95 to $24.95  monthly for theatrical access depending on market location. A new unlimited plan is also in the works.

HMNY’s stock has taken a beating on Wall Street, with shares in risk of being delisted for failing to meet the $1-per-share minimum. The corporate parent this week filed papers looking to spin off MoviePass to a subsidiary in hopes of resuscitating the penny stock.

HMNY subsidiary MoviePass Films got a boost this week after its film, Border, was nominated for an Academy Award in the “Best Makeup and Hairstyling” category. Announced last September, MoviePass Films partnered with Neon Rated LLC to co-release the Cannes award-winning film from writer and director Ali Abbasi.

The Swedish fantasy film is based on the short story of the same name by Ajvide Lindqvist from his anthology “Let the Old Dreams Die.” It won the Un Certain Regard award at the 2018 Cannes Film Festival and was selected as the Swedish entry for the Best Foreign Language Film at the 91st Academy Awards, though it was not nominated.

 

 

Helios and Matheson Files With SEC for MoviePass Spinoff

Helios and Matheson Analytics announced Jan. 17 that it has filed confidentially with the Securities and Exchange Commission to spin off its theatrical ticket subscription service MoviePass as a new subsidiary, MoviePass Entertainment Holdings.

Helios will spin off shares by listing on Nasdaq or an alternative exchange and distribute some of the shares as a dividend to shareholders as of a record date yet to be selected, according the announcement.

The company will retain a controlling stake in MoviePass.

MoviePass Parent Sells Hundreds of Millions in Common Stock for Pennies

Fiscally-challenged Helios and Matheson Analytics, parent of theatrical ticket subscription service MoviePass, Jan. 16 announced it has entered into definitive agreements with certain institutional investors for the purchase of 333,333,334 common units for gross proceeds of about $5.4 million.

Each unit includes one share of common stock, one warrant to purchase one share of common stock at a price of 1.63 pennies per share, one warrant to purchase another share of common stock at the same price, and one warrant to purchase one share of common stock at $1 per share.

The potential gross proceeds from the warrants, if fully exercised on a cash basis, will be about $344.2 million.

HMNY said it would use the $5.4 million for working capital purposes; to redeem about $1.2 million of an outstanding debt offering; and to pay certain fees due to the placement agent and other transaction expenses.

Indeed, with its stock worth less than 2 cents per share, HMNY is in danger of being delisted by Nasdaq for failing to meet the minimum $1 per share threshold. The trading board has given HMNY until April to meet the minimum.

 

 

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 Films Inks Bruce Willis for Three New Projects

While its parent company – Helios and Matheson Analytics – lost $137 million in the most-recent fiscal period, with the stock worth about 1.6 cents, that hasn’t stopped MoviePass Films from signing Bruce Willis to a three-film deal.

Willis, who recently finished filming drama 10 Minutes Gone for Emmett/Furla/Oasis Films, agreed to the new deal with the production company he has made 14 movies (such as 16 Blocks and Lay the Favorite) for over his career.

Helios and Matheson Analytics, which owns and operates fiscally-challenged subscription theatrical ticket service, MoviePass, acquired Emmett/Furla/Oasis Films earlier this year, renaming the unit MoviePass Films.

Willis’ first movie in the new deal is Trauma Center, which reportedly begins filming in Miami in February.

“After 15 years, I look forward to continuing to work with Randall [Emmett] and George [Furla] in the coming year,” Willis said in a statement.

 

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.”

 

 

 

 

MoviePass Promotes Itum to EVP

MoviePass, the movie theater subscription service and majority-owned subsidiary of Helios and Matheson Analytics, has appointed Khalid Itum to EVP.

Previously VP of business development, Itum will continue to report to CEO Mitch Lowe. Itum will manage day-to-day operations at MoviePass, working closely with both Lowe and HMNY CEO Ted Farnsworth to spearhead company development, and drive its exhibition and distribution strategies forward, according to a MoviePass press release. Itum will also be responsible for creating its strategic plan and ensuring its implementation.

“Khalid is a unique talent with an amazing vision, who has been an integral part of MoviePass since 2014,” said Lowe in a statement. “Before coming on in a full-time capacity in 2017 to lead our studio affairs and distributor partnerships, he played a significant role as an advisor. As we continue to spur innovation across the industry, he not only strengthens our sales and operations efforts across the organization, but he deepens our relationships within the industry ecosystem.”

As VP, Itum had been responsible for driving revenue through multiple studio and independent distributor partnerships and various brand and content deals. He played a crucial role in growing MoviePass’ Los Angeles office and led the strategic formation of MoviePass Ventures and its first acquisition of American Animals — alongside The Orchard — at the 2017 Sundance Film Festival, according to the release. He also spearheaded the acquisition of Moviefone from Oath earlier this year.

“Khalid has a proven track record and I believe he will serve our financial goals and increase our overall operating performance,” said Ted Farnsworth, CEO of Helios and Matheson, in a statement. “Khalid brings a remarkable enthusiasm and passion to the job each day and truly shares in the overall vision of MoviePass.”

“I’m eager to continue building MoviePass and am proud of how far we’ve come,” said Itum in a statement. “The road hasn’t been easy — and the hyper growth has been challenging. However, we’ve taken a hard look over the past few weeks and months at what needs to happen in order to not just preserve what we’ve built, but to use it as a foundation upon which to build. Because of this, I know we’ll emerge a better partner to the theaters (big and small), major studios and independent distributors with whom we have the privilege of working to collectively best serve the interests of the American consumer. You may notice we’ve been out of the news for some time, and that’s been by design. At MoviePass, we’ve recently prioritized building toward a vision that aligns our success with greater consumption of entertainment. You’ll soon be able to judge for yourselves, and I believe that the best marketing we can do, today and always, is to enhance our product and treat our subscriber as a member of something special: because that’s what MoviePass is to a great number of Americans already. It’s on us to regain their trust. I believe the future is bright for our company, and I couldn’t do it without my team which has been giving its 200% dedication and effort to transform the offering and platform into its full potential. I look forward to announcing some powerful additions to our management team to join with us in charging forward.”