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MoviePass CEO Isn't Sure If The Service Will Bring Back 1 Movie Per Day

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MoviePass CEO Isn't Sure If The Service Will Bring Back 1 Movie Per Day
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Helios and Matheson Analytics Inc (NASDAQ: HMNY) popped as much as 5 percent Thursday on news that MoviePass abandoned its daily movie subscription package.

As of April 13, for the same $9.95 per month that previously secured 365 movie showings, new customers get just four tickets per month plus a subscription to iHeartRadio All Access.

CEO Mitch Lowe told The Hollywood Reporter "I don't know" when asked if MoviePass will ever reinstate the former model.

Why It’s Important

The Street seemed to interpret the strategy positively, as Helios and Matheson has long been plagued by critics of the MoviePass business model.

"As recently as a few months ago, Lowe told THR there were no plans to water down the service," The Hollywood Reporter's Paul Bond and Pamela McClintock wrote. "If the per-day service does not return, it would represent a victory of sorts for the skeptics who predicted the business model was unsustainable."

The debut of the previous offering — lowering the price from $50 to $9.95 last August — correlated with a 100-fold boost in MoviePass subscribers. A diminished offering may curb growth trends and limit the firm’s capacity to achieve its targeted 5 million to 6 million users — from a 2 million base — in 2018.

Update: On May 2, Lowe said the $10-per-month service will return.

What’s Next

Lowe said the change will affect relatively few customers, as 88 percent see fewer than two movies per month.

Helios and Matheson traded around $2.58 at time of publication, up 3 percent on the day. The stock is down about 60 percent in 2018.

Related Links:

The Pros And Cons Of MoviePass

Helios And Matheson Buys Moviefone

Posted-In: Mitch Lowe MoviePass The Hollywood ReporterNews Top Stories Movers Media Trading Ideas Best of Benzinga

 

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