Reuters: Helios and Matheson drops on stock sale plan to raise MoviePass stake

 
 

(Reuters) - Helios and Matheson Analytics Inc (HMNY.O) said on Tuesday it would sell shares to raise funds to increase its stake in online ticketing service MoviePass, sending Helios’ shares plunging 22 percent aftermarket.

The company’s shares soared as much as 31 percent in regular trading after retailer Costco Wholesale Corp (COST.O) agreed to offer a subscription plan that would cover a year of membership for both MoviePass and streaming service Fandor for a flat fee of $89.99.

Helios did not disclose the size, date or terms of the offering.

The company’s shares have sky-rocketed since Aug. 15, when it agreed to buy a majority stake in MoviePass for $27 million.

MoviePass, a Netflix-style movie subscription business, allows unlimited access to more than 90 percent of U.S. theaters for a monthly subscription fee of $9.95.

The switch to a single $9.95 model in August helped the company’s subscriber numbers surge to over 400,000 from less than 20,000 within a month.

To Tuesday’s close of $10.08, Helios had more than tripled  in value this year.

Helios is a highly shorted stock, with about 42 percent of its total float held by short sellers as of Nov. 30, according to Thomson Reuters data.

Seeking Alpha: MoviePass owner announces share offering

 
 
  • Helios and Matheson Analytics (NASDAQ:HMNY) announces a new public offering of shares and warrants that will be issued separately.
     
  • Details on the size of the offering weren't disclosed.
     
  • The company says that it intends to use the proceeds from the offering to increase its ownership stake in MoviePass and support business operations of the movie ticket subscription platform.

InvestorPlace: Helios and Matheson Analytics Inc. Stock Soars on Costco MoviePass Deal

Costco is selling a MoviePass and Fandor subscription for $89.99

Helios and Matheson Analytics Inc (NASDAQ:HMNY) stock was on the rise today following news of a deal with Costco Wholesale Corporation (NASDAQ:COST).

The deal between Costco and Helios and Matheson Analytics Inc has to do with MoviePass. MoviePass is a majority-owned subsidiary of HMNY. The deal allows Costco members to purchase a one-year subscription to the service for $89.99.

The deal also includes a one-year subscription to movie-streaming service Fandor as well. The offering will only be available to Costco customers for a limited time. Those interested will be able to purchase the subscriptions via the retailer’s website from Dec. 12, 2017 to Dec. 18, 2017.

Costco customers that order the MoviePass and Fandor subscriptions will receive digital codes they can redeem for the services. These codes will need to be entered on MoviePass’ and Fandor’s websites to start the subscription service.

For those doing the math, the offer from Helios and Matheson Analytics Inc, Costco and Fandor saves quite a bit of cash. A subscription to MoviePass costs $9.95 per month. This comes to roughly $120 per year. The deal is worth it just for that, but the addition of the Fandor subscription makes it even better for COST customers.

“We’ve long been fans of Fandor’s library of movies and we’re excited to partner with them and Costco to bring new members this incredible limited-time offer,” Mitch Lowe, CEO of MoviePass, said in a statement. “MoviePass is ultimately about celebrating our love of movies, whether you stream them at home or experience them on the big screen.”

HMNY stock was up 15% as of noon Tuesday and is up 178% year-to-date.

Time: MoviePass Just Got Even Cheaper, Thanks to Costco

Movie buffs are in for a treat in 2018, thanks to a new deal that offers year-long subscriptions to both MoviePass and Fandor for half price.

Costco is currently offering an evoucher that bundles a full year of access to MoviePass and Fandor for just $89.99.

MoviePass, which gives free movie tickets, usually costs $120 a year alone. Twelve months of Fandor, a movie streaming service, is $60.

MoviePass offers access to one free full–price movie ticket every day at some 4,000 movie theaters across the country. The MoviePass subscription doesn’t work for 3-D theaters, but there are no blackout dates, meaning fans can catch a movie anytime they like.

Fandor offers subscribers 5,000 movies to stream in the comfort of their own homes. Titles range from Hollywood classics to documentaries, foreign films and the latest film festival favorites.

Customers don’t need a Costco subscription to sign up for the deal.

Benzinga: MoviePass, Fandor Ink Deal With Costco

 
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Just in time for the holidays, MoviePass, a movie-theater subscription service that's partially owned by analytics firm Helios and Matheson Analytics Inc HMNY, will be available to Costco Wholesale Corporation COST clients at a special price.

What You Need To Know
MoviePass allows its consumers to attend unlimited movies at more than 90 percent of theaters across the U.S. for a fee of $9.95 per month. But as part of a special promotion, a full-year MoviePass subscription along with access to Fandor's library of over 5,000 digital streams, will be available through Dec. 18 on Costco.com for a one-time payment of $89.99.

Why It's Important
MoviePass' user base has grown to over 600,000 subscribers and some analysts are modeling a path towards 1 million users. A partnership with Costco could be seen by some as a move that would accelerate the company's growth profile.

It's also important to note that Helios and Matheson's stock rose 1,000 percent in just one month before it was highlighted by Citron Research's Andrew Left as a short idea.

What's Next?
"We've long been fans of Fandor's library of movies and we're excited to partner with them and Costco to bring new members this incredible limited-time offer," said Mitch Lowe, CEO of MoviePass. "MoviePass is ultimately about celebrating our love of movies, whether you stream them at home or experience them on the big screen. We feel strongly that our subscription model is a major step forward for the industry, and the increased attendance that we've seen as a result of the MoviePass service is an encouraging sign not only for theaters, but for the studios and distributors as well."

HMNY shares were up more than 21 percent at $11.09 in Tuesday's session.

Benzinga: MoviePass Expands Revenue Source With Distributor Deal

 
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Helios and Matheson Analytics Inc HMNY 8.46% spiked more than 12 percent Monday after MoviePass announced a new revenue opportunity — a deal with an undisclosed independent movie distributor to promote a particular film for performance-based compensation.

“With studio-driven revenue, we have delivered on our promise to investors that our business model will continue to expand beyond subscription fees,” MoviePass CEO Mitch Lowe said in a press release.

The added revenue source and active effort to influence moviegoing behavior may abate Street skepticism of the MoviePass model.

MoviePass Proves Its Worth

MoviePass boasts of success in previous marketing campaigns, which corresponded with a 53.3-percent increase in ticket sales for Amazon.com, Inc. AMZN 0.48%’s “Last Flag Flying” and a 48.3-percent increase for Bleecker Street’s “The Man Who Invented Christmas” against non-targeted consumer control groups.

More broadly, it claims efficacy in bolstering releases and sustaining screening attendance beyond opening weekend.

Its representation among ticket sales for both “Justice League” and “Coco” marginally increased after opening weekend even as total attendance slipped. The firm also accounted for 13.21 percent of opening-weekend sales for “Roman J. Israel Esquire” and 10 percent for “Three Billboards Outside Ebbing, Missouri.”

“Our data shows that MoviePass has a demonstrable impact on revenue figures and percentage contributions to overall box office receipts for both major studio releases and independent films during Opening Weekend," Lowe said in the release.

Helios and Matheson traded recently at $9.44, up 11.4 percent.

Deadline: MoviePass Reports B.O. Impact On ‘Justice League’, ‘Coco’, ‘Three Billboards’ & More

 
 

MoviePass revealed various results this morning of how their monthly movie ticket subscription program is moving the needle for a number of titles in release at the fall box office. Currently, any moviegoer who wants to attend the cinema an unlimited number of times need only pay MoviePass $8 a month. 

Many inside distribution and exhibition have wondered how MoviePass will make money in the long run; and part of the company’s financial plan to offset those losses will come from marketing partnerships with studios and distributors.

To date, one MoviePass collaboration was with Bleecker Street’s Thanksgiving stretch release The Man Who Invented Christmas which the ticketing agency reports that they “realized a further 48.3% lift to ticket purchases for the title against a statistically relevant control group which was not a part of the marketing campaign.” To date, The Man Who Invented Christmas has grossed $4.3M at the domestic B.O.

Lionsgate/Amazon Studios’ Last Flag Flying. MoviePass reports that they “realized a further 53.3% increase in ticket purchases for the title against a statistically relevant control group, which was not a part of the marketing campaign.” Last Flag Flying has not been one of Amazon’s successes this season earning less than $1M.

In addition, MoviePass reported the following impact figures its subscription program had when it came to the box office. Duly note that studios on their side cannot verify these box office figures: They cannot see what portion of their hourly grosses are generated by MoviePass. Again, MoviePass only counts 600K subscribers, so marketshare figures are small. One major studio executive told Deadline recently that if MoviePass controlled a formidable share of admissions on a weekly basis, on par with Imax, then they’d take the company very seriously as a moviegoing partner. Of note:

–MoviePass’ ticket purchases accounted for 13.21% of the opening B.O. ($62K) for Sony Pictures/Columbia’s Roman J. Israel Esq.  “This represents more than a 6x increase on the average 2% of the box office that MoviePass contributes to nationwide,” says the company.

–MoviePass’ ticket purchases repped 10% of the opening B.O. ($322K) for Fox Searchlight’s Three Billboards Outside Ebbing, Missouri. 

–Moviepass repped 1.78% of domestic box office for Warner Brothers’ Justice League  — that’s $1.7M off an $93.8M opening. “Even as the domestic box office for the film shrunk to nearly 27% of opening weekend box office for the second full week MoviePass’ ticket purchases actually climbed to 2.17% of domestic box office total during that same period.”

–For Disney’s Coco, MoviePass’ accounted for 1.34% of the pic’s opening B.O. of $72.9M or $977K.  Coco‘s ticket sales eased close to 50% in weekend 2 with MoviePass’ percentage contribution to the domestic box office upticking to 2.18%.

–On Universal’s The Snowman, MoviePass fueled 3.54% of the pic’s $6.6M opening weekend or $233K.

“The data speaks for itself – our data shows that MoviePass has a demonstrable impact on revenue figures and percentage contributions to overall box office receipts for both major studio releases and independent films during Opening Weekend,” said Mitch Lowe, CEO of MoviePass. “And in partnering actively with studios, exhibitors and distributors to promote particular titles, we continue to drive even more tangible benefits to both movie exhibitors and studios.  With studio-driven revenue, we have delivered on our promise to investors that our business model will continue to expand beyond subscription fees.”

“Studio and distributor executives are increasingly understanding our impact on box office receipts. But we’ve moved beyond ideological discussions in Hollywood to the tactical – how we can partner with studios and distributors to actively influence moviegoing behavior in order to have our subscribers select and buy tickets to their titles over other movie options,” said Khalid Itum, VP of Business Development at MoviePass. “And while it can no longer be disputed that our opening weekend box office numbers are consistently significant at this stage in our company’s growth, I think the real story here is the velocity of our impact: that MoviePass’ contribution to those box office totals grow beyond opening weekend for sustained performance in the theatrical window even as box office receipts decrease overall on a weekly basis.”

MoviePass also announced today that they’ve signed a marketing-performance based revenue agreement with an independent distributor, but did not name the company in their release. “Under terms of the agreement, MoviePass will provide active marketing services to a particular title and will earn revenue based on the incremental increase in ticket prices demonstrated in the theatrical release of the film,” read this morning’s statement.

Forbes: The MoviePass $89.95 Annual Subscription: Safe Bet Or Risky Business?

 
 

In the weeks since MoviePass announced its $89.95 annual subscription promotion—a 25 percent discount off its $9.95/month plan—I’ve gotten lots of queries about the wisdom of taking up MoviePass on the offer.

Most have expressed concern that if they put down their $89.95 up front, as the plan requires, they may get left with an unhappy write-off if the movie-ticket-a-day service goes bankrupt.

It’s not an unreasonable worry, given that MoviePass not only seems to be unsustainable at the low average price of $7.50 per month, but also because it has attracted increasing ire from the movie theater chains with whom it does its business.

But there are other considerations to factor in to the decision as to whether to purchase the annual pass. Here are two good reasons to go ahead, and three reasons to consider sticking with the monthly plan instead, or skipping MoviePass completely.

Read full article here

Cision PR Newswire: Studio Movie Grill scores record attendance in 2017 with the help of MoviePass and data driven decisions

2017 industry stories continue to sound the alarm on box office woes.  SMG, with the help of MoviePass, has experienced major increases in off-peak attendance as well as with smaller films.  In 2016, Studio Movie Grill ("SMG") created a strategic relationship with MoviePass, the nation's premier movie-theater subscription service, to assist in driving traffic into its theaters.  On the anniversary of that partnership, SMG is delighted to announce that it will finish the year with both positive comp store attendance and sales.  The company considers its success to have been bolstered by its partnership with and early adoption of MoviePass, coupled with the growth of the in-theater dining concept and service model.

In fact, at a time when competitors have seen a marked decrease in anticipated annual revenue, SMG is staying on track for continued growth due, in no small part, to the substantial partnerships it forged, including that with Movie Pass, and the subsequent guest loyalty it engendered.  

SMG partnered with MoviePass in experimenting with new concepts by combining the best of subscription and dine-in cinema to enhance loyalty and build new audiences. In addition, Movie Pass has seen tremendous success with millennials, who perceive great value in the program coupled with the time savings the extensive American Grill menu and in-theater dining offers at SMG.  They also love the ease of use and subscription offerings.  Members benefit from being able to take advantage of features like e-ticketing and seat selection directly through the MoviePass app.  

"MoviePass has enhanced our ability to open hearts and minds by providing a no risk vehicle for movie goers to sample movies they might not otherwise see.  SMG was amazed to learn that in some cases, as with Lady Bird, MoviePass generated a double digit % of total attendance.  We are in the business of creating the habit of movie going and we are excited to be an early adopter of MoviePass," said Brian Schultz, Founder/CEO, Studio Movie Grill.

The largest gains SMG has seen from the program have been in driving attendance to off-peak times and bringing audiences in for a wider range of movies.  In some cases, a monthly even weekly habit is created on the price point offered.  Thus, MoviePass caters to the viewing habits of SMG's loyal guests and prides itself in producing theater attendance increases month over month from subscribers.

"The MoviePass subscription-based model can be an integral part of the future of the exhibition business and we are excited to have been the leader in implementing the model in our theaters," stated Ted Croft, CFO, Studio Movie Grill. "As a conscious business, it is important for SMG to be focused on being actively involved as a partner in innovative steps towards enhancing the future of movie going and to supporting our stakeholders."

Read more here

The New York Times: Twelve Gifts May Be Better Than One

Credit: Kendra Dandy

Credit: Kendra Dandy

It might seem a bit extravagant to give a newly married couple a present every month. Yet monthly gifts may not cost much more than one big gift bestowed at the wedding, and these keep on giving throughout the year. There are many options from which to choose. Here are a few suggestions.

Unlimited Movies
MoviePass, a movie ticketing service, offers various subscription plans for viewing new films at participating theaters nationwide. Subscription holders can see a movie a day if they want for a flat monthly fee; the service is attached to a mobile phone number. A 12-month plan can be purchased as a gift for $119.40 per person and a six-month plan for $59.70. moviepass.com

Read full article here 

Cheddar: MoviePass Lets You Go to Theaters For Less than $7 a Month

 
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National movie ticket prices are at an all-time high, but one company wants to tempt Americans with a $6.95 monthly subscription service, which allows moviegoers to hit the cinema once a day, for as many days as they'd like.

That service, Movie Pass, charges about $1.70 less for a full monthly subscription than the national average cost of a single movie ticket in the U.S.

Ted Farnsworth is the CEO at Helios and Matheson, the majority owner of MoviePass. He says the company is leaning towards a data-driven business model.

“That’s really where you make your money --on the data side,” Farnsworth said.

Helios and Matheson recently doubled down on its investment in MoviePass, where Netflix co-founder Mitch Lowe is at the helm, by funneling $100 million into the company. Lowe said that MoviePass will use this funding to expand its data science program.

"This latest round of investment will allow MoviePass to continue to deliver on its mission of staying the number one movie theater subscription service in the country," he said. "As demand for our service continues to accelerate among consumers, the early data we are seeing on movie-going behavior can be tremendously valuable to both the studios and theaters.”

But is this a risky investment? Data suggests that people prefer to watch movies at home. According to a Statista report, a cool 52 percent of Americans who watch movies prefer to stay home, while only 12 percent would actually go to a theater. Still, the same firm projects that the movie industry will hit $50 billion by 2020. As of 2016, it was worth $38 billion.

MoviePass is riling up some industry leaders, however. Movie giant AMC Theaters released a statement this summer calling the company a “small fringe player,” and stated that AMC is working with its lawyers to see if it can prevent MoviePass tickets from being used at its theaters.

“MoviePass announced a change to its ‘subscription model’ that would allow consumers to see up to 365 movies a year for a monthly fee of $9.95. MoviePass envisions paying AMC its full ticket price without discount. The AMC average ticket price for watching a movie at AMC Theatres in the most recent financial quarter was $9.33,” the statement said.

“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.”

This week, MoviePass launched a limited-time holiday sale that allows subscribers to sign up for under $7, although it usually costs 9.95 per month.

Farnsworth says that lowering the cost has brought in an influx of new customers. He also says that the company is partnering with tech companies like Uber and Lyft to offer “movie night” promotions, and similarly with movie studios.

“We are the only company that understands every move you make, what movies you go see,” he said. “It’s a very sustainable model, that’s not our issue at all, that’s why we lowered the price.”

TechCrunch: MoviePass drops pricing to under $7 per month, if you opt for the annual plan

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MoviePass, the subscription service that lets consumers pay a monthly fee to see unlimited movies in theaters across the U.S., is slashing its prices yet again. The company announced today it’s now offering its service for $6.95 per month, down from the current price of $9.95 per month, when customers commit to a one-year subscription plan. That works out to a flat fee of $89.95 annually.

The deal is a limited-time promotion, as opposed to a permanent pricing change, but MoviePass didn’t say how long the offer is valid. However, it is open to both new and existing subscribers – the latter who would receive a 25 percent savings on their current subscription if switching over to the annual plan.

This is not the first time that MoviePass has dropped its pricing.

When the company introduced its $9.95 per month, one-movie-per-day plan this August, down from $15 for 2 movies per month (or more in select markets like L.A. and NYC, and going as high as $50), it saw so many new sign-ups it had trouble meeting demand. Within a couple of days, 150,000 new users joined, and by September, the company said that its number of subscriptions had grown to 400,000.

As of October, MoviePass had grown to over 600,000 subscribers.

It also said its subscriber churn had dropped from 4.2 percent in the first month, to 2.4 percent in month two.

The service is today majority owned by data firm Helios and Matheson Analytics Inc. (HMNY), after selling a $27 million stake in August. The firm then increased the purchase price in October to $28.5 million, raising its stake to 53.71 percent from 53 percent. In November, HMNY announced plans to raise $100 million to increase its investment even further.

This influx of capital has allowed MoviePass to continue to subsidize the cost of this subscription to the benefit of pass holders, though obviously not profitability at this point. It’s operating in the red while it focuses on growing subscribers.

MoviePass hopes to eventually convince theater owners it’s growing their customer base, so it can be cut in on profits, according to CEO Mitch Lowe, in a report from Variety in August. It also believes it may be able to sell the data collected on its subscribers in the future.

In the meantime, MoviePass is a ridiculously cheap deal for movie-goers. It now works at 91 percent of theaters across the U.S., though not all are happy with the service.

AMC specifically threatened the startup with legal action in August, and announced that MoviePass was “not welcome here.” It said it would try to find a way to opt out, as it believes lowering the cost of ticket prices would devalue the theater-going experience overall.

Others, like Regal and Cinemark, are taking a wait-and-see approach, Lowe earlier said. 

“HMNY continues to be the biggest supporter of MoviePass, as it outpaces any other movie theater subscription service and continues to disrupt the movie theater industry,” said Ted Farnsworth, Chairman and CEO of HMNY, in a statement about today’s new, lower pricing. “We look forward to helping MoviePass continue to broaden its reach and modernize the movie theater industry,” he added.

The annual subscription is available now through MoviePass.com

New York Post: MoviePass dangles big discount heading into holidays

MoviePass is cutting the price of a movie to less than the cost of a popcorn and a drink.

For a limited time, the all-you-can-watch movie ticketwill now cost you just $6.95 a month — 30 percent below its usual $9.95 price.

But there’s a small catch — you have to pay for an entire year upfront. The special-offer $89.95 price includes a $6.55 processing fee.

Back in August, MoviePass was an expensive, niche service, charging users up to $50 a month to see as many movies as they wanted in theaters.

But then the company upset some theaters owners by slashing the price from $50 to $9.95. Americans loved the lower price and the number of MoviePass subscribers ballooned to over 600,000.

Ted Farnsworth, chief executive of Helios & Matheson Analytics, which took a controlling stake in MoviePass before the price cut, told The Post that the company decided to offer the limited-time lower price because it is determined to get its subscriber numbers past the 1 million mark.

It is already making its mark on the theater industry, according to Farnsworth.

MoviePass was responsible for 4 percent of all tickets sold for the recently released “Murder on the Orient Express,” which pulled in over $36 million in its opening weekend, according to Farnsworth.

Photo: Shutterstock

Photo: Shutterstock

Insider Financial: Helios and Matheson Analytics Inc. Enters Into Agreement to Issue $100 Million in Convertible Notes to Institutional Investors In Order to Increase Its Stake in MoviePass™

by Chris Sandburg

by Chris Sandburg

It has been a little over a week since we last covered Helios and Matheson Analytics Inc (NASDAQ:HMNY) and, at the time, the company was trading considerably down on its pricing from just a few days earlier.

From highs around $35 during early to mid-October, the company had fallen to around $10 a share – a decline of a little over 71%.

The decline came in part due to profit taking on the steep run-up throughout September and in part due to markets letting off steam after what was (in all likelihood) an overenthusiastic response to the development that kicked it all off.

Read more here

Forbes: MoviePass Owner Helios & Matheson's Shares Soar 47% On $100M Debt Issuance News

by Rob Cain

by Rob Cain

No media-related stock has been on a wilder rollercoaster ride these past few months than Helios & Matheson (NASDAQ:HMNY), owner of the MoviePass movie ticket subscription service. The company’s share prices went on a 1,400 percent tear starting on September 15, when MoviePass announced that it had signed up 400,000 subscribers in the month since it rolled out its new $9.95 per month “all you can watch” plan. After rocketing from $2.50 per share on September 14 to a high of $38.66 just 19 trading sessions later on October 11, the stock rapidly drifted down to the $10.00 range, where it bounced around for a few weeks until yesterday.

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That was when Helios revealed that it had secured a $100 million convertible debt commitment from institutional investors for the purpose of further funding MoviePass, and for general corporate purposes. That sparked a 45.2% pop for HMNY’s shares on Tuesday, to a closing price of $14.20.

Read full article here

 

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