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Elizabeth Balboa

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.