[2017] Movie Pass

[dioxide45]

The thing about subscription services like this it is like gym memberships, they hope people will sign up and then rarely use the service. Those that don't go or don't go often enough pay for those that overuse the service. The problem is when people use the service in droves, it causes issues. Certainly $10 a month is not sustainable. They do have other revenue streams available, but I still don't think that can pay for the movies they are paying for. They needed to work out arrangements with the theaters first to obtain some type of kickback/commission for increasing traffic to the movies and concessions. Certainly the theaters like the arrangement, more people in the theaters and more revenue from the shows and concessions.

 

[Steve Fatula]

They do have other revenue streams available, but I still don't think that can pay for the movies they are paying for. They needed to work out arrangements with the theaters first to obtain some type of kickback/commission for increasing traffic to the movies and concessions.

Of course they will work out a deal with the theaters, completely agree with you. But before you can do that, you have to have a large population of customers which is the phase they are in. Once you have a large enough base, you have more power in the negotiations. And then, once one theater chain succumbs to a deal, the others will almost be forced to follow. I don't see any issue with this strategy. It all depends on how much money you have to lose. Look at Amazon, how many years (decade?) they lost money, they were called unsustainable all the time. But, they had a massive amount of cash.

Not really worried about a month to month subscription if they ever died. So, I might lose a month depending on the month it happened, but I think they are smarter than they are getting credit for. And keep in mind AMC is likely behind some of the bad press.

Articles that seem to say nothing more than can MoviePass survive on their existing structure are not really thinking very much! There are many potential revenue streams here. But it will be a while before any profitability. Assuming they are well capitalized, they should be ok IMHO.

 

[Helaine]

They needed to work out arrangements with the theaters first to obtain some type of kickback/commission for increasing traffic to the movies and concessions. Certainly the theaters like the arrangement, more people in the theaters and more revenue from the shows and concessions.

Some chains agreed, but they asked this of AMC a few months ago. AMC said no way - this is not a sustainable business model - they will not get any of our money. Movie Pass then stopped supporting AMC's top 10 theaters. AMC has still not capitulated.
"MoviePass is seeking a $3 cut on AMC tickets that it covers, plus 20% of concessions given the foot traffic it sends to AMC (a total estimated at about $2 million a week, per MoviePass insiders)."

 

[Steve Fatula]

AMC said no way - this is not a sustainable business model - they will not get any of our money.

Exactly, realizing of course that this is just blowing smoke. So what if it's not sustainable (their public excuse), funny how the others have no issue. They will likely continue to fight tooth and nail, and are undoubtedly behind the bad press. But that's normal business. In the end, say Moviepass is able to send 10 million a week to say Cinemark many of which used to go to AMC, you think they might reconsider? That's the gamble being played out. Not too different than the initial struggle between Netflix and DVD rentals at the time.

 

[MULTIZ321]

MoviePass Prevents Repeat Viewings as Avengers: Infinity Wars Opens
By Brian Barnett/ Avengers: Infinity War/ IGN/ ign.com

"The war may be infinite, but you can only see it once.

Just in time for the wildly anticipated Avengers: Infinity War, MoviePass has decided to prohibit repeat viewings of the same movie.

According to The Hollywood Reporter, the change came Friday as many prepared to see the newly-released Marvel blockbuster, with an update that read, in all caps, "THE SERVICE PROHIBITS REPEAT VIEWINGS OF THE SAME MOVIE."

Far from being new, the change actually sees the service return to a policy it had over a year ago, and MoviePass CEO Mitch Lowe told THR the change is intended to help the company address issues of user fraud...."


Richard

 

[MULTIZ321]

Wall Street is So Sure MoviePass Will Fail, It's Become Incredibly Expensive to Short
By Alison Griswold/ Quartz/ qz.com

"Bob Visse couldn’t believe it when he first heard about MoviePass, a subscription movie-ticket service that lets members see a movie per day in theaters for $9.95 a month. “I honestly thought the same thing that everyone else always thinks,” he said. “This is too good to be true.”

In December, Visse, who lives in Kennewick, Washington, bought a pair of yearlong passes for himself and his wife for $89.99 each through a Costco deal. He also started paying attention to Helios and Matheson Analytics, a little-known data company that took a controlling stake in MoviePass in August 2017. Before he retired, Visse, 50, managed Microsoft’s MSN web portal and entertainment division, and he was intrigued by MoviePass’s potential to cut deals with film studios. Earlier this year, Visse started buying Helios and Matheson stock.

It hasn’t gone well. Shares of Helios and Matheson have tumbled 88% this year, as MoviePass has burned through an average of $21.7 million a month since last October to subsidize steep discounts, forcing its parent company to sell more shares to bolster its balance sheet. Instead of cutting its losses, Helios and Matheson has doubled down, buying up so much MoviePass common stock that it held about 92% of outstanding shares as of April 16. Helios and Matheson fell 45%, to $0.79, on May 9 after the company said in a securities filing that it had $15.5 million in cash on hand remaining, which even if it slashed the rate of its cash burn would last little more than a month.

Visse still has one good option: lending out his shares to short sellers, investors who bet that a company’s stock price will fall. Demand to short MoviePass’s parent is so great on Wall Street that retail investors like Visse can make a good bit of money by loaning out their otherwise largely worthless shares. As of May 9, bank and brokerage firm Charles Schwab was offering a 48% annualized interest rate to retail investors with large positions in Helios and Matheson, Visse told Quartz. It was charging double that to institutional investors looking to borrow the shares to short them. Schwab declined to comment...."

Wall Street is betting MoviePass won’t last. (AP Photo/Darron Cummings)


Richard

 

[MULTIZ321]

MoviePass Owner Hits Back at Reports Service is Dying
By Brent Lang/ Film/ Markets & Festivals/ Variety/ variety.com

"MoviePass’ stock has tanked in recent days on concerns about a cash shortage.

In an interview at the Cannes Film Festival, Ted Farnsworth, head of MoviePass’ parent company Helios & Matheson Analytics, said the subscription service has roughly $300 million available to it from an equity line of credit. The Helios chief is in the South of France to premiere “Gotti,” the John Travolta crime movie that MoviePass is releasing in conjunction with Vertical Entertainment.

“There’s been a feeding frenzy of negativity, but it’s not going to slow us down,” said Farnsworth. “I’m not worried at all. You’re going to see. We’re doing more acquisitions of movies and companies.”

MoviePass faces its share of skeptics. In a public filing last week, MoviePass disclosed it had $15.5 million in available cash — less than it traditionally spends to finance ticket buying on a monthly basis. Shares of parent Helios & Matheson Analytics slid 17¢ on Thursday to 61¢, a 22% decline and the second-lowest close for the stock since the company went public in 1997. Wall Street may have cooled on the service, but Farnsworth hit back, saying, “We’ve got 17 months’ worth of cash without further raises of capital.”..."

CREDIT: Michael Buckner/Deadline/REX/Shu


Richard

 

[MULTIZ321]

MoviePass Owner Says It Has $300 Million Line of Credit and Could Stay Afloat for 17 Months Without Raising More Money
By Jason Guerrasio/ Entertainment/ Business Insider/ businessinsider.com

"Ted Farnsworth — the CEO of Helios & Matheson Analytics, the parent company of MoviePass— played off concerns about the company's financial situation while attending the Cannes Film Festival this week.

While speaking with Variety in the South of France, where Farnsworth was on hand for the premiere of "Gotti," the mob movie starring John Travolta that MoviePass is releasing along with Vertical Entertainment, Farnsworth told the trade that despite the company losing around $20 million a month since September, he's "not worried at all."

"You're going to see. We're doing more acquisitions of movies and companies," Farnsworth said...."


Richard

 

[PigsDad]

They're going to make up for the losses with volume?

Kurt

 

[bbodb1]

They're going to make up for the losses with volume?

Kurt

I'm having Letterman flashbacks.....
Volume, Volume, Volume!

 

[MULTIZ321]

MoviePass to Launch 'High-Demand' Pricing Starting Next Month
By Bryan Clark/ Insider/ TNW/ The Next Web/ thenextweb.com

"MoviePass, perhaps the best deal running for anyone who still visits their local theater, is about to get more expensive.

According to a Business Insider report, the company plans to implement “high demand” pricing for popular movies starting in the next few weeks. In a system that’s reminiscent of Uber’s surge pricing, films that are popular with MoviePass subscribers will be subject to an extra $2 fee.

“At certain times for certain films — on opening weekend — there could be an additional charge for films,” CEO Mitch Lowe told Business Insider.

It’s not all bad though. The company also plans to add some additional features this summer that make MoviePass an even better value.

The first, a bring-a-friend option, is pretty self-explanatory.

The second, and this is something I’ve been wanting since first signing up for the pass, is the option to pay an additional fee for movies in Imax or Real 3D. Currently, MoviePass doesn’t support either (or other premium theater offerings), and using the pass on these premium offerings could get your account banned, permanently....."

Richard

 

[MULTIZ321]

AMC is Launching a MoviePass-Like Subscription Service
By Patricia Hernandez/ Entertainment/ Film/ Culture/ The Verge/ theverge.com

"It’ll be twice as expensive, but it boasts fewer restrictions than MoviePass.

The largest theater chain in America has announced that it will now offer a subscription service that allows patrons to watch up to three movies a week for $19.95 a month. Called AMC Stubs A-List, the subscription will function as an extension of AMC’s existing loyalty program, and it will roll out starting on June 26th.

According to the AMC press release, the online and smartphone-based subscription will allow members to watch multiple movies a day and let you see movies more than once. There will be no online ticketing fees, and it will offer a discount on food and drinks at the concession stand. Stubs A-List will be redeemable toward formats like IMAX and 3D and will also include special AMC locations such as Dine-Ins. AMC also boasts that the service will allow you to make up to three reservations at once in advance without having to physically be at the theater, unlike MoviePass’s one-at-a-time, location-dependent ticketing model.

The benefits go beyond movie tickets. Here’s AMC:
AMC Stubs A-List members also enjoy all the benefits of AMC Stubs Premiere, 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 for the AMC Stubs A-List monthly fee and food and beverage spending at AMC theatres. AMC Stubs Premiere members receive a $5 reward for every 5,000 points earned, which translates to a 10% credit toward future AMC purchases...."

Richard

 

[Steve Fatula]

Well, AMC really did hate Moviepass that much. All the bad press they put out, and, now they do something similar. I think it's great though, makes one think these are here to stay. Really, it's twice the price. Yes, there are a few benefits, but not worth that much for me. I went with the $7.99 Moviepass instead. It's only 3 movies a month, but, I really can't see myself doing more than that. I guess which one suits you better is based on your usage. Either could work. If you truly want to go to every first run movie for example, I am sure the AMC deal is better. Or, all the 3D/Imax. The popcorn / drink upgrades isn't worth much (to me). This is our second Moviepass purchase. I hope I am right and this lasts forever. Not necessarily MP, but the concept. It's really a great deal, we have spent a lot less on movies since we trialed the first MP subscription.

 

[Sandy VDH]

Since I have an annual movepass for $90 (So $7.50 a month all in), I will keep it until it ends at least, which is not until December this year.

I use it at AMC and with my Stubs Premier membership I get back the same $5 earning per 5000 points accumulated. So I can go to more movies, at half the price, just not the fancy seat ones. However I had to pay the $10 a year for the membership (they were running a promo). So that is extra.

So at the rate I am going, I will get discounted enough $ to cover my movie pass and my stubs membership for the year. AMC make money on my drink purchase. I rarely buy popcorn, but I did somehow manage to get 2 birthday rewards this year, do not know how that happened.

 

[SmithOp]

I have AMC Stubs Premier also, mainly so I did not have to pay the online booking fees. Our local theater upgraded all the seats to power recliners, very nice and I like that I can book exact seats by number. They have a $5/seat deal on Tuesdays, thats when we go, hope they keep that. We only go once or twice a month at most, very few new movies interest us.


Sent from my iPad using Tapatalk Pro

 

[MULTIZ321]

Movie Pass: Everything You Need to Know
By Joe Maring/ AndroidCentral/ androidcentral.com

"Here's your one-stop-shop for all the MoviePass news, controversies, and more.

Unless you've been living under a rock lately, there's a good chance you've heard a thing or two about MoviePass. Although the company was founded way back in 2011, it's picked up a lot of steam over the past year or so with its too-good-to-be-true offer of allowing you to see one movie per day for just $9.95/month.

MoviePass has become one of the most disruptive companies of recent memory, and whether you're looking for the latest controversies or want to learn more about the service before you sign up, you've come to the right place.

Without further ado, this is everything you need to know about MoviePass!...."

Richard

 

[rapmarks]

We have had rainy bad weather, but there are not any good movies at the theatre. How do you find so many to go to

 

[Sandy VDH]

We have had rainy bad weather, but there are not any good movies at the theatre. How do you find so many to go to

That all depends on your definition of good. It seems to be either feast of famine for titles.

I find with Moviepass I am more likely to try titles I do not know about, but have decent reviews. If I don't like it I can always walk out. I saw Book Club and Oceans 8, in the last 2 weeks even though those are movies I wouldn't normally go and see. I saw Jurassic World: Fallen Kingdom, Avengers, Solo, Ready Play One, Star Wars Greatest Showman, Shape of Water, over the last 5 months, all good theater choices

 

[bnoble]

I find with Moviepass I am more likely to try ...

I am new to MP (in my first month), but I saw Ready Player One and Ocean's 8 in a theater, both of which I would have otherwise waited for home streaming or just skipped. But, I'm also looking for ways to keep myself occupied these days.

 

[rhonda]

Surge pricing has gone into effect.
Link: https://www.engadget.com/2018/07/05/moviepass-surge-pricing-starts-today/

Snippet:
Last month, MoviePass CEO Mitch Lowe announced that surge pricing would soon go into effect, charging customers a little extra for movies and showtimes that are especially popular. That added fee, which MoviePass is calling Peak Pricing, starts rolling out today to customers with a monthly plan as well as any new annual subscribers. When a film or a particular showtime is in high demand and subject to an additional fee, you'll see a little red lightning icon over the showtime. Any showtimes that are gaining in popularity and could have an added Peak Pricing fee soon will have a grey lightning icon above them.

 

[Steve Fatula]

It has, but, they are also going to implement one free surge price per month my email says.

 

[Sandy VDH]

I have an annual plan so I will NOT have this impact me until January 2019, when my plan renews.

 

[MULTIZ321]

MoviePass Was Down for Hours, Ruining Everyone's Friday Night
By Brittany Levine Beckman/ Entertainment/ Mashable/ mashable.com

"Frustrated moviegoers let out a collective scream Friday night when MoviePass stopped working.

As customers from across the country tried to purchase tickets, they were left confused as the popular app that lets you pay a monthly subscription fee was down for several hours. The company announced on Twitter that it was aware of the issue around 7:45 p.m. ET — after social media users had complained prior — and asked moviegoers to buy tickets at full price from the theater in exchange for a refund at a later date. The company resolved the issue around 9:30 p.m. ET and asked customers to wait to submit their refund requests until Saturday....."

MoviePass was down for several hours Friday.


Richard

 

[Kozman]

I have an annual plan so I will NOT have this impact me until January 2019, when my plan renews.

Same here. However, I was caught last time by having to take a photo of the ticket stub and submitting to them. Supposedly this did not go out to everyone and was meant to discourage abuse. I use the MP maybe twice a month!

 

[Sandy VDH]

Same here. However, I was caught last time by having to take a photo of the ticket stub and submitting to them. Supposedly this did not go out to everyone and was meant to discourage abuse. I use the MP maybe twice a month!

I was too. But I am not doing anything that I am not suppose to AFAIK.

I thought that picture of the ticket was for everyone. I have had to do it since I downloaded a newer version of the app.

Are we targeted or is that for everyone? I did look it up and found this. MoviePass tells us that it’s all part of a test program to combat fraud. The group we are testing this feature on has not done anything wrong, but they will help us to determine if this new system is effective.