Market Overview

MoviePass Accelerates Plan For Profitability


New Cost-Reduction and Subscription Revenue Increase Measures Have Been
Implemented, Currently Cutting the Monthly Burn by 60%

MoviePass™, the nation's premier movie theater subscription service and
a majority-owned subsidiary of Helios and Matheson Analytics Inc. (Nasdaq:
) ("Helios"), today announced the implementation of several new
measures aimed at accelerating the plan for profitability. Through these
new steps, the company believes it will be able to compress its timeline
to reach profitability.

This press release features multimedia. View the full release here:

MoviePass Accelerates Plan for Profitability (Photo: Business Wire)

MoviePass Accelerates Plan for Profitability (Photo: Business Wire)

Approaching the one-year anniversary of introducing its standard $9.95
price point, the MoviePass community has grown to more than 3 million
members and in turn has contributed to record box office growth,
responsible for approximately 6 percent of the nation's total box office
sales in the first half of 2018. In addition, MoviePass Ventures and
MoviePass Films are contributing to the company's ancillary revenue.

Today, the company has implemented several elements of a long-term
growth plan to protect the existing community and set it up for future
sustainable growth.

MoviePass has implemented several new cost-reduction and subscription
revenue increase measures:

  • Actions that have been implemented are currently cutting the monthly
    burn by 60%.
  • A future increase of the standard pricing plan to $14.95 per month
    within the next 30 days.
  • First Run Movies opening on 1,000+ Screens to be limited in their
    availability during the first two weeks, unless made available on a
    promotional basis,
  • Implementation of additional tactics to prevent abuse of the MoviePass

As of Q3 and beyond, MoviePass is also generating incremental
non-subscription revenue of approximately $4 to $6 per subscriber per

Integration of MoviePass Ventures and MoviePass Films with our own
original content allows us to gain revenue by owning the films through
box office, streaming, DVD, retail, transactional sales e.g. Apple and
Samsung, and international rights, etc.

  • Partnerships with 3rd party media inventory to increase scale and
    reach of marketing efforts driven by data
  • Continued rollout and refinement of the Peak Pricing program
  • Creating strategic marketing partnerships and promotions with studios,
    content owners, and brands
  • Integration of Moviefone.Com to support the media buys of brands and

In an effort to maintain the integrity of the MoviePass mission, to
enhance discovery, and to drive attendance to smaller films and bolster
the independent film community, MoviePass will begin to limit ticket
availability to Blockbuster films. This change has already begun rolling
out, with Mission Impossible 6 being the first film included in
the measure. This is a strategic move by the company to both limit cash
burn and stay loyal to its mission to empower the smaller artistic film
communities. Major studios will continue to be able to partner with
MoviePass to promote their first run films, seeding them with a valuable
moviegoing audience.

MoviePass subscribers are also more readily influenced by
recommendations and more willing to make them, making them an invaluable
audience to studios and distributors. The National
Research Group
study indicates that when we recommend films, partner
with studios, or promote our own movies, we currently account for 20% to
45% of the national box office.

"Over the past year, we challenged an entrenched industry while
maintaining the financially transparent records of a publicly traded
company. We believe that the measures we began rolling out last week
will immediately reduce cash burn by 60% and will continue to generate
lower funding needs in the future," said Ted Farnsworth, Chairman and
CEO of Helios.

"These changes are meant to protect the longevity of our company and
prevent abuse of the service. While no one likes change, these are
essential steps to continue providing the most attractive subscription
service in the industry. Our community has shown an immense amount of
enthusiasm over the past year, and we trust that they will continue to
share our vision to reinvigorate the movie industry," said Mitch Lowe,
MoviePass CEO.

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

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

Cautionary Statement on Forward-looking Information

Certain information in this communication contains "forward-looking
statements" about HMNY 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.
Forward-looking statements are generally identified by words such as
"projects," "may," "will," "could," "would," "should," "believes,"
"expects," "anticipates," "estimates," "intends," "plans," "potential"
or similar expressions. Statements regarding future events are based on
HMNY's current expectations and are necessarily subject to associated

Such forward-looking statements are based on a number of assumptions.
Although management of HMNY 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 may differ
materially and adversely 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

Some, but not all, of these risks include, among other things: our
capital requirements and whether or not we will be able to raise capital
as needed; the success of our cost-reduction and subscription revenue
increase measures; our ability to continue to generate non-subscription
revenue; our ability to successfully develop the business model of
MoviePass; our ability to integrate the operations of MoviePass,
MoviePass Ventures, MoviePass Films, Moviefone and other acquired
businesses into our operation; our ability to retain our existing
clients and market and sell our services to new clients and the risk
factors described in HMNY's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2018 filed with the SEC on May 15, 2018, in
HMNY's Annual Report on Form 10-K for the fiscal year ended December 31,
2017 filed with the SEC on April 17, 2018, and other HMNY filings,
including subsequent current and periodic reports, information
statements and registration statements filed with the SEC. You are
cautioned to review such reports and other filings at

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
HMNY's current expectations and HMNY 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.

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