Owner of Theater Subscription Service Highlights Growth of New Model for Movie Ticketing

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 NEW YORK (August 15, 2018)— Data and technology company Helios and Matheson Analytics Inc. (Nasdaq: HMNY) (“Helios”), owner of MoviePass, today reflected on its one year anniversary of its revolutionary movie subscription service and formalized plans for it new, sustainable business model.

One year ago, today, Helios announced its acquisition of a small U.S. movie theater subscription company, MoviePass.  With only eight employees at the time, MoviePass was considered a fringe player supporting 720 partnered screens and having 15,000 subscribers.  When MoviePass lowered its subscription price from $20 per month to $9.95 per month, it created a movement bringing movie enthusiasts back to movie theaters and became a boon to a declining industry which, one year later, is showing signs of a financial rebound.

Within the first several days, MoviePass grew 1,000%, from 15,000 subscribers to 150,000.  MoviePass continued the quick growth trajectory, acquiring one million subscribers in just four months.  This growth enabled MoviePass to close deals with Costco, iHeart Radio, and major Hollywood studios.

Now, MoviePass has over 2,000 partner screens while also available for use at 91% of movie theaters nationwide. MoviePass recently launched a new subscription model which is projected to reduce its cash deficit by approximately 60% or more while allowing its subscribers to enjoy three movies per month for $9.95 per month and additional movies at a discounted price, a “win-win” for its subscribers and the industry. 

“We far exceeded our 2017 expectation for Helios and MoviePass,” said Ted Farnsworth , Helios chairman and CEO. “In our agreement to acquire MoviePass in August 2017, MoviePass had a performance milestone to achieve 100,000 subscribers in one year.  We were all surprised to see the subscriber growth surpass that milestone in one week.  It is rare to see surprises of this magnitude. We’ve reached an important point in our company where, after a year of research and analysis, we believe we have fine-tuned the MoviePass business model to fit our unique growth rate. Under the new plan, we believe we are creating a more sustainable path for MoviePass and its loyal subscribers.”

“Measured by number of movie tickets sold, we are the fourth largest theater chain in the country without any brick and mortar locations, or screens,” said MoviePass CEO Mitch Lowe. “It’s an amazing milestone considering we feel like we’ve just begun.”

Helios/MoviePass One Year Highlights:

 ·         Helios acquired MovieFone which will be integrated with MoviePass.

·         Helios launched MoviePass Ventures at Sundance Film Festival 2018.

·         Helios launched MoviePass Films with Emmett Furla Oasis Films and veteran Hollywood producers Randall Emmett and George Furla.

·         MoviePass Films signed Bruce Willis for its first production, 10 Minutes gone.

·         MoviePass E-Ticketing partners have seen a 38% growth in just the last few weeks.

·         MoviePass now accounts for approximately 6% of all movie tickets sold in the U.S. in any given week.

·         MoviePass has purchased over $450 million worth of tickets in the last 12 months.

·         49% of MoviePass subscribers are seeing movies they wouldn’t normally see in theaters.

·         MoviePass has partnered with 2 major studios and over 10 independent distributors and was engaged to promote their films, showing efficacy in marketing and buying a greater percentage of their box office, showing it can persuade subscribers to see particular titles over others.

·         HMNY, MoviePass’ parent, established MoviePass Ventures in January 2018, and co-acquired rights to two movie titles, American Animals and Gotti, and brought its subscriber base a series of MoviePass subscriber-only events.  It has begun to monetize the titles downstream, beyond the theatrical window.

·         MoviePass conducted a series of sweepstakes and offers, showing the responsiveness and receptiveness of its subscriber base, including a 1.5% conversion rate for a financial services company (compared to an average 0.025% conversion rate) and over 120,000 opt-ins in a 24-hour period for a movie-related sweepstakes.

·         MoviePass is one of the most widely read business stories of 2018.

·         47% of MoviePass subscribers are recommending more movies to friends.

·         70% of MoviePass subscribers state that they somewhat or strongly agree that they are still more likely to see a film despite a low Rotten Tomatoes score.

·         Beast, a Roadside Attractions’/30West’s production:  MoviePass-supported and E-ticketing screens grossed 54.7% higher than theaters that MoviePass does not support.

·         MoviePass ticket purchases represented 16.8% of Thursday night previews for Paramount’s Book Club.

·         During the July 4th 2018 holiday week, MoviePass accounted for over 5% of Universal Pictures’ First Purge, a 3,000+ screen wide release.  

·         Hearts Beat Loud, a Sundance favorite:  MoviePass represented 40% of the film’s box office take in its first full week of its theatrical release in New York and Los Angeles.

·         Tag, which MoviePass promoted in-app, represented 13% of the film’s opening weekend domestic box office.

·         A Miseducation of Cameron Post:  MoviePass represented 57% of the film’s opening weekend NYC release.

·         Blindspotting:  MoviePass contributed 22.7% of its opening weekend domestic box office, and 24.7% through the first Tuesday following its release (37.6% domestic box office contribution on Monday, 30.8% domestic box office contribution on Tuesday) that included advance member screenings.

About Helios and Matheson Analytics

Helios and Matheson Analytics Inc. (Nasdaq:HMNY) (“Helios”) is a provider of information technology services and solutions, offering a range of technology platforms focusing on big data, artificial intelligence, business intelligence, social listening, and consumer-centric technology. Helios currently owns approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass Inc., the nation's premier movie-theater subscription service. Helios' holdings include RedZone Map™, a safety and navigation app for iOS and Android users, and a community-based ecosystem that features a socially empowered safety map app that enhances mobile GPS navigation using advanced proprietary technology. Helios is headquartered in New York, NY and listed on the Nasdaq Capital Market under the symbol HMNY. For more information, visit us at www.hmny.com.

About MoviePass Inc.

MoviePass Inc. (“MoviePass”) is a marketing technology platform enhancing the exploration of film and the moviegoing experience. As the nation's premier movie-theater subscription service, MoviePass provides film enthusiasts the ability to attend select new movies in theaters. The service, now accepted at more than 91% of theaters across the United States, is the nation's largest theater network. Visit us at moviepass.com.

Cautionary Statement on Forward-looking Information

Certain statements in this communication contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 or under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, “forward-looking statements”) that may not be based on historical fact, but instead relate to future events, including without limitation statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “project” and similar expressions. All statements other than statements of historical fact included in this communication are forward-looking statements.

Such forward-looking statements are based on a number of assumptions. Although Helios’ management believes that the assumptions made and expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement contained herein will prove to be accurate. Actual results and developments (including, without limitation, the ability of MoviePass to reduce its cash deficit by 60% while allowing its members to enjoy more than three movies per month and  the ability to create a more sustainable path for MoviePass) may differ significantly from those expressed or implied by the forward-looking statements contained herein and even if such actual results and developments are realized or substantially realized, there can be no assurance that they will have the expected consequences or effects. Risk factors include, among other things: Helios’ capital requirements and whether or not it will be able to raise capital as needed; the success of MoviePass’ cost-reduction and subscription revenue increase measures; the ability to successfully develop the business model of MoviePass; the ability to integrate the operations of MoviePass, MoviePass Ventures, MoviePass Films, Moviefone and other acquired businesses into Helios’ operation; MoviePass’ ability to retain its existing subscribers and market and sell its services to new subscribers, and the risk factors described in  Helios’ Annual Report on Form 10-K for the fiscal year ended December 31, 2017, its quarterly report on Form 10-Q for the quarter ended June 30, 2018 and other filings, including subsequent current and periodic reports, information statements and registration statements filed with the U.S. Securities and Exchange Commission. You are cautioned to review such reports and other filings at www.sec.gov

Given these risks, uncertainties and factors, you are cautioned not to place undue reliance on such forward-looking statements and information, which are qualified in their entirety by this cautionary statement. All forward-looking statements and information made herein are based on Helios’ current expectations and Helios does not undertake an obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law.