MarketWatch: MoviePass hits 1.5 million subscribers, shares of majority owner jump 9%

Shares of MoviePass majority owner Helios & Matheson Analytics Inc. HMNY, +5.20% gained more than 9% in premarket trade on Tuesday after the subscription movie ticket platform said on Twitter it had reached 1.5 million paid subscribers. MoviePass has been growing rapidly, and demand for the service seems to still be high. In late December, the $10-a-month service allowing members to see a movie a day in cinemas said it had hit the 1 million subscriber mark. It took Netflix, which began by mailing out DVDs, three years to reach 1 million subscribers. MoviePass Chief Executive Mitch Lowe has said the demand was more than the company expected. MoviePass had just 20,000 subscribers before dropping the price of its subscription to $10 from as much as $50 back in August. People who have signed up for the service have criticized the company for not sending them the cards necessary to use the service. Shares of Helios & Matheson have gained nearly 116% in the last 12 months, while the S&P 500 index SPX, +0.16%is up more than 21% and the Dow Jones Industrial Average DJIA, +0.17% is up more than 27%.

Finanzen.Net: MoviePass™ Surpasses 1.5 Million Subscribers

Less than 30 days after announcing its milestone of 1 million subscribers, MoviePass™, the nation’s premier movie theater subscription service and a majority-owned subsidiary of Helios and Matheson Analytics Inc. (Nasdaq:HMNY), announced today that MoviePass™ added another 500,000 new paying subscribers since December 12, 2017. MoviePass™ subscribers can see a movie every day of the month for a low monthly subscription fee of $9.95.

Mitch Lowe & Ted Farnsworth (Photo: Business Wire)

Mitch Lowe & Ted Farnsworth (Photo: Business Wire)

"MoviePass™ is attracting people back to the movie theaters by lowering their cost, which we believe is transformational for the industry,” said Ted Farnsworth, Chairman and Chief Executive Officer of HMNY. "We believe the data MoviePass™ collects from these million and a half movie-goers will become an important asset to our partners and the future of the movie industry,” Mr. Farnsworth continued.

 

Deadline: MoviePass Jumps Past 1.5M Subscribers In The Post-Holiday Period At The B.O.

 

Less than 30 days after hitting 1 million subscribers, Helios and Matheson Analytics’ MoviePass has now swelled to 1.5M monthly customers.

 

“MoviePass is attracting people back to the movie theaters by lowering their cost, which we believe is transformational for the industry,” said Ted Farnsworth, Chairman and Chief Executive Officer of HMNY in a statement. “We believe the data MoviePass collects from these million and a half movie-goers will become an important asset to our partners and the future of the movie industry,” Mr. Farnsworth continued about the service which provides subscribers with unlimited movie tickets for $9.95/a month.

“Based on the dramatic increase in the number of MoviePass subscribers over such a short period of time, we believe MoviePass will continue to grow its subscriber base significantly,” added Mitch Lowe, Chief Executive Officer of MoviePass. “We’re giving people a reason to go back to the movie theaters and they’re going in droves. With awards season here, we hope we can make Hollywood and exhibitors very happy by filling seats with eager audiences.”

In a $1 billion holiday movie period where moviegoers are seeing anywhere from two to four titles in a two week period, Lowe informed Deadline in November that “We’re funded properly to pay for” the holiday box office period; that the run on the B.O. would not drain the company.

MoviePass has been met with plenty of skepticism by those in the industry, chiefly how the model of charging a monthly price that’s lower than most metropolitan average movie ticket prices can stay afloat (while the consumer pays only $9.95/a month, MoviePass pays full price for each ticket to the exhibitor). Largely big exhibitors like AMC are ticked off that an outside player is determining the new cost of a movie ticket in consumers’ heads. Studios are largely agnostic to MoviePass: The service isn’t taking any money out of their hands, and if they can drive more business to the cinema, then more power to them.

Market Watch: How MoviePass plans to make money from its more than 1 million subscribers

MoviePass announced on Dec. 20 that it had surpassed 1 million subscribers 

Source: Getty Images

Source: Getty Images

MoviePass, the $10-a-month subscription service allowing moviegoers to see a film a day at cinemas, has been chewed over in Hollywood — seen as both friend and foe.

The haste with which the company hit the million subscriber milestone — announcing on Dec. 20 that it had done so, just four months after lowering the subscription cost to $10 from as much as $50 — suggests consumers see MoviePass’s value.

It took Netflix, of which MoviePass Chief Executive Mitch Lowe was a founding executive and which, of course, began life as a DVDs-by-mail service, more than three years to hit the 1 million subscriber mark.

MoviePass had roughly 20,000 subscribers before the price cut, but demand for the service since has been much higher than Chief Executive Mitch Lowe expected.

Also see: MoviePass has struggled to meet demand for its $10-a-month movie-ticket deal

Check out: MoviePass helped drive record attendance at Studio Movie Grill cinemas

However, those in the industry and others following the business are concerned that MoviePass’s model is unsustainable. The question is how a movie-theater subscription company subsidizing its members’ potentially expensive film-going habits can be profitable?

“It’s about the data,” said Ted Farnsworth, chief executive of Helios & Matheson Analytics Inc., which owns a majority stake in MoviePass.

Helios & Matheson shares HMNY, +1.11% have been on a tear since the company took its majority position in August. Shares are up about 102% since that time. The stock has been volatile, too, reaching an intraday high of $38.86 per share in October, but closing Thursday at $6.90 a share.

Read: Costco offering members MoviePass and streaming Fandor service for $89.99 a year

Short seller Andrew Left warned retail investors in October that Helios & Matheson shares would fall back to $20, and that MoviePass would never be a $1 billion company.

“I’m not worried about it,” Farnsworth told MarketWatch. “He’s a short seller, so he’s got to cover his squeeze. But the bottle will stand on its own.”

Some critics of the MoviePass business are concerned the company won’t be able to make money and will flame out, further hurting already troubled theater chains, or that it will have to raise subscription prices and drive users away

When Helios & Matheson acquired MoviePass, the company also cut the price from as much as $50 a month to $9.95. But it is still shelling out the full price of tickets to studios and movie theaters.

According to the National Association of Theater Owners, the average cost of a single movie ticket was $8.65 in 2016 — and double that figure in some major U.S. cities.

See: Former Netflix executive wants to shake up moviegoing with $10 MoviePass service

Also read: MoviePass has struggled to meet demand for its $10-a-month movie-ticket deal

“The deal from our side and why we’re excited is we still get paid the full price of admission. If this succeeds in driving attendance, it will pay for itself,” said Chris Aronson, head of distribution at 20th Century Fox FOXA, +3.65% . “And they’ve made no secret that their goal is to mine data from subscribers. We’d be very interested in that.”

That’s exactly what Farnsworth and MoviePass’s Lowe are banking on. 

“Making money putting people in the theater is fine, but also think about the advertising side,” Farnsworth said. “We’re the only company out there that can tell companies exactly who and when people are going to the movies.”

 

If MoviePass is able to prove that it can drive incremental box-office revenue to studios and cinemas, Lowe said, the company can strike deals to share in the revenue from those sales, as well as from concessions.

Read: Is MoviePass’s $10-a-month movie ticket deal really as epic as it seems?

That could then lead to studios paying MoviePass to promote films to its users. MoviePass has experimented with this already, and Farnsworth said 18% of users go to movies after prompting by the MoviePass app.

Farnsworth and Lowe said they want to partner with restaurants located near cinemas and possibly even with Uber to get users a ride to the theater. It’s all about capitalizing on a night out at the movies, Farnsworth said.

“It’s so much easier than people think,” Farnsworth said. “There are so many areas for revenue streams. Will we need to raise more capital in the future? Sure. But right now we’re focusing on growing the company and doing deals with companies already out there.”

Shares of Helios & Matheson have gained 109% in the year to date, while the S&P 500 indexSPX, +0.65% is up 20%, and the Dow Jones Industrial Average DJIA, +0.24% is up nearly 26%.

Variety: How Do the MoviePass Competitors Stack Up?

MoviePass has emerged this year from obscurity as an app-based subscription service for those seeking to see movies for a low price. MoviePass grabbed headlines on Dec. 20 when it announced that it had passed the 1 million mark in paid subscribers, after it unveiled a pricing plan in August that allows subscribers to purchase a single movie ticket per day for a flat monthly subscription fee of $9.95 per month.

Though theater owners have long fought the idea of discounting movie tickets, the service has quickly gained traction as the movie business confronts the growth of streaming and lower ticket sales. Two other services — Cinemark’s Movie Club and California-based Sinemia — are offering subscription services, but neither offers the generous one-a-day policy of MoviePass.

Here’s how the three services stack up.

What is MoviePass?

MoviePass allows subscribers to purchase a single movie ticket per day for a flat monthly subscription fee by using a mobile app. It slashed prices in August to $9.95 per month, then offered a one-year subscription plan at $6.95 a month that required users to pay for the full year in advance.

It works with a special debit card good for one ticket per day at many theaters, though premium theaters such as the ArcLight aren’t included. But that’s only for day-of purchases and only for 2D movies. There’s also no family or couples option, making it difficult to book seats together.

Finally, the future of MoviePass is a bit murky, given AMC’s threat to take legal action and the question of whether the business model is sustainable. MoviePass pays theaters the full price for a ticket, so it is in essence subsidizing its users’ moviegoing and losing money each time they go to a film.

Read full article here

Slashfilm: MoviePass Has Reached One Million Subscribers

The movie theater ticket subscription service MoviePass shook up Hollywood earlier this year when a majority stake in the company was bought by Helios and Matheson Analytics Inc., which resulted in the monthly service dropping their price to just $10 a month. For that price, subscribers are able to see one movie each day as long as it’s not in IMAX or 3D, and they can see the same movie as many times as they want to. It’s one hell of a bargain, and movie-going audiences have been paying attention.

Just before Christmas, MoviePass subscriptions had reached 1 million paid subscribers, and if the credit given to the service for raising movie theater attendance is any indicator, the service is only going to get bigger.

“We are excited and proud to have reached the one millionth subscriber level in such a short time while still early in the consumer adoption curve. Our focus on creating the best movie theater subscription service experience for our subscribers has propelled our growth to date. We believe that growth will continue as we further develop our application, improve customer service, enhance exhibitor relations and fill movie theater seats for incredible films to be released in the future.”

Deadline says MoviePass reached this milestone in just four months. MoviePass has been around a lot longer than the past four months, but it had a relatively small number of consumers for a few years and most of their customer base was built up during the past few months. By comparison, it took Netflix 39 months to reach 1 million monthly subscribers. However, it should be noted that Netflix was the spark that lit the fire for media subscription services to take off with consumers, so it’s not necessarily a fair comparison.

Even so, the fact that MoviePass has grown so rapidly is impressive. The service has been operating rather smoothly after a rough start had customers waiting weeks to receive their Master Card debit card that they use to pay for tickets after checking into movie theaters through the MoviePass app. They’ve had some kinks in the system here and there due to the influx of new customers and the usual growing pains that come from a company expanding at such a quick rate, but they seem to be keeping most customers happy. Surely the Christmas season saw many more new subscribers gifted the service too.

We haven’t seen extensive statistics about the performance of MoviePass, but the company itself has provided some promising numbers. The service has increased opening weekend ticket sales by over 10% for some films, and subscribers are heading out to theaters even more during a film’s second week of release. Plus, Studio Movie Grill had “record attendance attributed to the help of MoviePass, led by an increase in off-peak attendance as well as with smaller films.”

This all comes after the largest movie theater chain in the world, AMC Theatres, pitched a fit about the subscription service. Of course, we learned that’s all because their own idea for a movie theater ticket subscription service didn’t pan out the way they hoped. Meanwhile, the movie theater chain Cinemark is desperately trying to keep up by creating their own subscription service, but it doesn’t quite measure up to the bargain that comes from MoviePass.

While it’s still early in the game for MoviePass, the company has made quite a splash in the film industry so far. If they keep growing, then the death of movie theaters may not be as close as some thought. But we’ll have to wait and see if MoviePass can keep this momentum going or if they crash and burn as AMC Theatres predicted.

Are you happy with MoviePass so far?

New York Times: MoviePass Adds a Million Subscribers, Even if Theaters Aren’t Sold on It

LOS ANGELES — As streaming services like Netflix and Hulu surge in popularity, movie theaters have been trying to compete by rethinking the concession counter and installing seats that resemble beds.

Yet attendance was flat at North American cinemas in 2016, and analysts are predicting a 4 percent decline in 2017, bringing ticket sales to a 22-year low.

Perhaps something more radical is necessary.

Mitch Lowe, a Netflix co-founder, certainly thought so when he took over a ticketing firm called MoviePass in June 2016. By August of this year, when MoviePass introduced a cut-rate, subscription-based plan — go to the movies 365 times a year for $9.95 a month — Mr. Lowe had been declared an enemy of the state. “Not welcome here,” AMC Entertainment, the largest multiplex operator in North America, said in an indignant August news release that threatened legal action.

Dan Steven using his MoviePass to buy a ticket this week at the AMC Disney Springs 24 theater in Lake Buena Vista, Fla.  Credit: Jacob Langston for The New York Times

Dan Steven using his MoviePass to buy a ticket this week at the AMC Disney Springs 24 theater in Lake Buena Vista, Fla. 
Credit: Jacob Langston for The New York Times

It may be time to get on board: MoviePass said this month that it had signed up more than one million subscribers in just four months. It took Netflix more than three years to reach that level when it started selling low-priced subscriptions for DVD rentals in 1999. Spotify was relatively quick, at five months in 2011. It took Hulu 10 months to reach one million later that year.

“We’re actually shocked,” Mr. Lowe said. “We seem to have hit a nerve in America.”

Mr. Lowe and Ted Farnsworth, chief executive of Helios and Matheson Analytics, which bought a controlling stake in MoviePass in August for $27 million, celebrated the milestone by cheekily posing for photos at an AMC theater in Times Square.

Mr. Lowe, who previously sparred with studios as president of Redbox, the kiosk company that rents DVDs for $1 a day, believes that ticketing can at least be a break-even business for MoviePass. The real treasure in this venture, he contends, is the trove of data about consumer tastes and habits that MoviePass can collect. It hopes to sell that data to studio marketers.

Mr. Farnsworth said, “When you apply computer science and machine learning to an industry that we believe has lacked significant innovation, useful patterns start to emerge.” If MoviePass gets big enough, it could try to demand that chain theaters sell tickets at a discount or share a slice of their concession revenue.

Helios recently raised $60 million for the expansion of MoviePass, which expects to have more than three million subscribers by the end of next year. Monthly subscriber retention is roughly 96 percent, Mr. Lowe said. About 75 percent of MoviePass users are millennials, a group that Hollywood has struggled to turn into avid moviegoers.

“Millennials understand us because they grew up on subscription,” Mr. Lowe said.

Dan Steven, 34, signed up for MoviePass in October. Mr. Steven, who lives in Orlando, Fla., said he had gone to “maybe one movie a month” before he became a subscriber. In November, he went 12 times.

“I used to only go if it was clearly worth buying a ticket — something big-screen worthy, a spectacle or a movie with a lot of effects,” he said. “I would skip the undercard movies. I would just wait until they came out on Netflix.”

Over the last decade, theaters have spent billions of dollars to enhance the moviegoing experience. Improvements include the ability to reserve seats online, reclining seats, bigger screens, and better sound and projection systems. But the business has remained more or less the same for decades (sell ticket, serve popcorn, show movie) even as nearly every other area of media (television, music, publishing) has been forced to reinvent itself to contend with digital disruption.

As the popularity of MoviePass demonstrates, theater owners may no longer be able to avoid fundamental change. In particular, studios are expected to force exhibitors in the coming months to loosen their grip on new movies. Theaters have typically insisted on a 90-day period of exclusivity. Studios want to shorten that window and speed films to home video-on-demand services.

“This is something that has to happen, in part because consumers are demanding it,” Jim Gianopulos, chairman of Paramount Pictures, said at an investor conference in September.

MoviePass, which has been around since 2011, struggled to gain traction in its early years because of pricing ($50 a month, later lowered to $35) and pushback from exhibitors, who worried that a subscription service would undermine per-ticket pricing. By early 2017, MoviePass was trundling along as a fringe service; it had about 20,000 users in the United States.

When Mr. Lowe and Mr. Farnsworth drastically lowered the price, people started signing up en masse.

To a degree, the service depends on traditional subscription economics: More people pay than go. The model starts to get more complicated, however, when you consider the price of movie tickets.

According to the National Association of Theater Owners, tickets cost an average of $8.93. But theaters in cities like New York, Los Angeles and San Francisco charge as much as $16.50 for a standard ticket. At Mr. Steven’s local theater in Florida, they are $11.92.

So far, none of the major studios have signed on as clients, and no studio executive contacted for this article would comment on the record. Mr. Lowe said MoviePass had been “making huge progress with content owners” and had signed up a small studio as a partner, but he declined to provide details.

The big theater chains have held their ground, although AMC recently softened its stance. A bit.

“We appreciate their business,” Adam Aron, AMC’s chief executive, said on a conference call with analysts last month. But Mr. Aron added, “AMC has absolutely no intention — I repeat, no intention — of sharing any — I repeat, any — of our admissions revenue or our concessions revenue.”

Regal, the No. 2 multiplex chain, has said it will take a “wait and see” approach to MoviePass, while Cinemark, the third-largest exhibitor, introduced its own subscription service in early December. For $8.99 a month, members can see one movie a month and receive a 20 percent discount on concessions, among other perks. Unused tickets roll over and never expire for paying members. Mr. Lowe called the offering “vapid.”

One small theater company that has become a MoviePass investor, Studio Movie Grill, which has 30 locations in nine states, credits the service with increasing attendance, especially on weeknights.

“I know it’s getting a bad rap in some circles, but we love MoviePass,” said Brian Schultz, Studio Movie Grill’s chief executive. “Some people aren’t sure they want to pay $10 to $12 to see a movie like ‘Lady Bird.’ MoviePass takes out that hurdle.”

Engadget: People are really into MoviePass’ unlimited cinema subscription

Source: Getty Images / iStockphoto

Source: Getty Images / iStockphoto

 

MoviePass, the deal that eliminates the eye-watering cost of going to the flicks, has passed the one million mark in paid subscribers -- not bad for a service that movie chain AMC lambasted as "unsustainable" earlier this year. Film fans can see a movie a day for $9.95 per month, or $6.95 if paid for the year in advance.

The offering has proved so popular (as the numbers suggest) that MoviePass couldn't keep up with demand. On unveiling the deal, the company's website crashed and customers faced a two-week delay in getting their MoviePass cards. Despite some limitations around the cinemas participating in the program, feedback has largely been positive, so we can expect subscription numbers to continue to increase pretty quickly. It's no surprise other companies, such as Cinemark, are getting in on the subscription action.

TechCrunch: MoviePass tops 1 million subscribers

Source: Drew Osumi

Source: Drew Osumi

Last month, the movie subscription service MoviePass, which lets customers go to unlimited movies in theaters for a monthly fee, lowered its pricing to under $7 per month, when billed annually. This followed an earlier price drop announced in August that brought the service down to $9.95 monthly. Today, the company says the introduction of its new pricing model has pushed membership to over a million paying subscribers.

That’s up from 600,000 users in October, and 400,000 in September.

After the price drop to $9.95/month, analysts projected MoviePass would hit the million subscriber mark by year-end. Meanwhile, MoviePass itself has previously said it aims to reach 2.5 million new subscribers in 2018.

The subscription service is a good deal for anyone who likes to go to the movies, but it’s not one that’s profitable for the company itself, even at this million-user mark.

To date, the company has been subsidizing the cost of tickets through the influx of capital it received after selling a majority stake – $27 million – to data firm Helios and Matheson Analytics Inc. (HMNY) in August. HMNY upped the investment in October to $28.5 million. And in November, it said it would raise $100 million to even further increase its investment in MoviePass.

As anyone can tell you, even a single movie ticket is more than $9.95 per month in most markets, and MoviePass users can go to theaters repeatedly throughout the month. The big bet that MoviePass – and HMNY – are making is that the company will eventually be able to sell the data and insights gained from its subscriber base to studios, who could then do targeted marketing for their films to the most active movie-goers.

In other words, if MoviePass’s plan plays out, users are paying for the service not with money, but by agreeing to have information about their preferences and movie-going behavior sold.

This risky business model seems to ignore the threat of Facebook, which already offers targeted marketing opportunities at scale. MoviePass, however, claims it could do better because it could connect the dots between showing an ad or a user watching a trailer, and movie attendance.

While that’s valuable data, not all theaters are happy about MoviePass. AMC threatened legal action in August, saying the service devalues the theater-going experience overall. (The service still works at AMC theaters for now.)

MoviePass, however, seems unfazed by the pushback.

“We are excited and proud to have reached the one millionth subscriber level in such a short time while still early in the consumer adoption curve,” said Mitch Lowe, MoviePass CEO, in a statement about its million subscriber milestone. “Our focus on creating the best movie theater subscription service experience for our subscribers has propelled our growth to date. We believe that growth will continue as we further develop our application, improve customer service, enhance exhibitor relations and fill movie theater seats for incredible films to be released in the future,” he said.

The Verge: MoviePass now has more than 1 million subscribers

Source: The Verge

Source: The Verge

MoviePass just announced that it now has more than 1 million paying users. 

This summer, the subscription service dropped its prices from a tiered model of $15 to $50 per month, to a flat fee of $9.95 per month. One week later, MoviePass was up to 150,000 subscribers, when it had just 20,000 a few months earlier. Last month, the company briefly offered an even cheaper one-year subscription plan, which came out to around $7 per month, but required users to pay for the full year in advance.

MoviePass has ballooned in just a few short months, but subscribers and theater chains are suspicious of its business model. MoviePass is subsidizing the cost of each ticket its users buy, at a maximum of one ticket per user per day, and almost definitely losing money. For people in big cities where theater prices can hover around $15, buying one movie ticket each month will already put MoviePass at a loss. MoviePass CEO Mitch Lowe has said the company hopes to offset the cost of city users by growing its subscriber base in more rural areas. The company also hopes that the data it collects from users will eventually be valuable to studios. 

But theater chains are worried that MoviePass will devalue the cost of movie tickets, because users will get comfortable paying so little. This summer, AMC threatened MoviePass with a lawsuit, and said it might opt-out of participation. For now, MoviePass works at most AMC theaters. 

Other theater chains have taken an alternate approach: trying to offer their own version of MoviePass. Earlier this month, Cinemark launched a MoviePass competitor called Cinemark Movie Club, but its price doesn’t really compare. It costs $8.99 per month for one 2D ticket, plus $8.99 for any additional tickets.

Deadline: MoviePass Clicks Past 1 Million Subscribers

Source: Drew Osumi

Source: Drew Osumi

It took Netflix 39 months to accumulate 1 million monthly subscribers and it has only taken monthly movie ticket service MoviePass four months to clear that mark. The majority-owned subsidiary of Helios and Matheson Analytics Inc announced this morning that they hit the 1M milestone. The news comes after MoviePass temporarily lowered their monthly subscription price from $9.95 and $8.

In the above photo, MoviePass CEO Mitch Lowe and Ted Farnsworth, CEO of Helios and Matheson Analytics celebrate outside AMC Empire 25 in New York City, the exhibitor who tried to sue MoviePass. Of course the work-around here in regards to how MoviePass works with theaters is that they mail their subscribers a debit Master Card which gets funded with a movie ticket purchase after their subscribers purchase a ticket through the MoviePass mobile app.

“We are excited and proud to have reached the one millionth subscriber level in such a short time while still early in the consumer adoption curve,” said Mitch Lowe, MoviePass CEO in a statement. “Our focus on creating the best movie theater subscription service experience for our subscribers has propelled our growth to date. We believe that growth will continue as we further develop our application, improve customer service, enhance exhibitor relations and fill movie theater seats for incredible films to be released in the future.”

How is MoviePass surviving, shelling out for the second biggest opening of all-time Star Wars: The Last Jedi at $220M?  “We’re funded properly to pay for that,” Lowe told Deadline last month about the Last Jedi rush and the holiday box office period.

MoviePass released some of their B.O. shares of recent November titles such as Coco, Lady Bird and Justice League. MoviePass cited that they accounted for $1.7M of the $93.8M opening B.O. of Warner Bros. Justice League. That’s a figure that the major studio cannot vouch for on their side because they cannot specifically see how many MoviePass tickets are being sold at the box office; they can only see actual dollars.

MoviePass dropped the following graph showing how they’ve outstripped other entertainment services on their way to reach to the 1M mark:

 

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

 
Benzinga_Logo-1.png
 

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

 
Benzinga_Logo-1.png
 

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.