3 million subscribers and counting: How high can MoviePass go?


MoviePass announced Wednesday that it has reached the 3 million subscriber mark and unveiled further ambitions in face of declining stock prices and growing criticism that the one-movie-a-day subscription plan is financially unsustainable.

In its announcement, MoviePass said that more than 5 percent of all U.S. movie receipts were purchased through its services — and as much as 8 percent in its peak weeks. When MoviePass targeted advertisements toward its subscribers for select movies, the company said its box office receipts for the movies jumped to 30 percent.

MoviePass — and its parent company, the New York City-based firm Helios and Matheson — says it expects to reach 5 million subscribers by the end of 2018.

“MoviePass is moving quickly and decisively on a course to continue innovating the film industry from the ground up and delivering audiences for films and films for audiences,” said MoviePass CEO Mitch Lowe in a statement. “We are witnessing the dawn of a new Golden Age, where audiences, studios and exhibitors are all connected, from top to bottom — all in the interest of diversifying the movie-going palate and demonstrating the success of smaller, independent titles.”

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MoviePass started its new subscription model in August and currently offers subscribers one movie ticket per day for $9.95 a month. The company’s rate of growth has slowed down, according to Business Insider; it took seven weeks for MoviePass to hit 2 million subscribers from 1 million, but it took 18 weeks to reach 3 million subscribers from 2 million.

Despite MoviePass’ growth, Wall Street has not been kind. After hitting its peak share price of $38.86 in October, Helios and Matheson’s share prices have slipped nearly …read more

Source:: The Mercury News – Business

      

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