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Rob Cain

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.

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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.

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