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Stats: 340 members, 4,611 Topics. Date: January 22, 2018, 10:53 pm

AMC Theatres Slams MoviePass, Threatening Legal Action

TodayNewsReview / Technology / Movies-Music / AMC Theatres Slams MoviePass, Threatening Legal Action 191 Views

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AMC Theatres is threatening legal action against MoviePass, a subscription based service for cinema-goers.

In a statement, the world’s largest exhibitor dismissed MoviePass as “a small fringe player” and said that its model “is not in the best interest of moviegoers, movie theatres and movie studios.”

On Tuesday, MoviePass announced that had sold a majority stake to Helios and Matheson Analytics Inc., a publicly traded data firm, for an undisclosed price. It said it was using the capital injection to fund an overhaul to its pricing model. It will now enable customers to see movie a day in a theater for a $9.95 monthly fee, far less than the cost of a ticket in many major markets.

MoviePass re-sells the tickets to customers. It claims it boosts attendance by 111% and that its customers buy more concessions. But exhibitors have preferred to bolster their own loyalty programs instead of aligning themselves with the service, with AMC investing heavily in its Stubs rewards program.

In the statement AMC said it is consulting with its attorneys to determine if or how it can prevent a subscription program offered by MoviePass from being used at its locations.

“MoviePass envisions paying AMC its full ticket price without discount,” the company’s statement reads. “The AMC average ticket price for watching a movie at AMC Theatres in the most recent financial quarter was $9.33. From what we can tell, by definition and absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month.”

In an interview on Tuesday morning, MoviePass CEO Mitch Lowe acknowledged that his company was subsidizing ticket buyers. He argued that it will be able to prove its value to movie theaters and studios, and that in the future they will cut the company in on their additional profits.

“We’re hoping that if we can drive a meaningful increase in attendance we can share in that success,” said Lowe.

AMC does not sound like it wants to endorse MoviePass’s ambitions.

In the statement it said, “that it is not yet known how to turn lead into gold,” adding, “In AMC’s view, that price level is unsustainable and only sets up consumers for ultimate disappointment down the road if or when the product can no longer be fulfilled.”

The company said that reducing pricing to accommodate the MoviePass model would negatively impact the customer experience and would leave them unable to “operate quality theatres” and will have a chilling effect on the creative community by cutting them out of the income they receive from movie theaters.

“While AMC is not opposed to subscription programs generally, the one envisioned by MoviePass is not one AMC can embrace. We are actively working now to determine whether it may be feasible to opt out and not participate in this shaky and unsustainable program,’ the company’s statement reads.

www.msn.com/en-us/movies/news/amc-slams-moviepass-threatening-legal-action/ar-AAqaati

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