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MoviePass Surpasses 600,000 Subscriptions; Helios And Matheson Investors Are Loving It

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MoviePass Surpasses 600,000 Subscriptions; Helios And Matheson Investors Are Loving It
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Helios and Matheson Analytics Inc (NASDAQ: HMNY) reported Tuesday that MoviePass Inc. saw a 30-fold increase in paying monthly subscribers since implementing its $9.95 subscription rate.

MoviePass, in which Helios and Matheson recently agreed to buy a majority stake, surpassed 600,000 paying monthly subscribers last week against mid-August figures of 20,000. The increase is a boon to the trending Helios and Matheson as it begins analysis of MoviePass data to identify trends in the film-exhibition industry.

"More subscribers mean more data,” Helios and Matheson CEO Ted Farnsworth said in a press release. “Together, I believe HMNY and MoviePass can offer important analytics to movie studios and exhibitors while serving the interests of moviegoers in the process."

The accelerated growth exceeded initial projections and coincided with a decline in churn rates. MoviePass saw 4.2-percent churn in the first month after introducing the new pricing model and 2.4 percent in the second. The rates reflect 96-percent monthly retention and a nearly four-year average subscriber “life expectancy.”

In reaction to the surge, MoviePass increased its year-long added subscriber predictions from 2.5 million to 3.1 million, according to a press release.

Some have wondered if MoveiPass is the so-called Netflix, Inc. (NASDAQ: NFLX) of movie theaters. "[T]his fall will be an interesting time for MoviePass to test how much demand there is for people to go to the theater," CNN Money's Paul La Monica opined.

Helios and Matheson spiked 20 percent to nearly $16 per share in pre-market trading off today's news.

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Posted-In: Andrew Left Citron Research MoviePass Ted FarnsworthNews Short Sellers Movers Media Best of Benzinga

 

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