As part of the sale of its majority stake to Matheson Analytics Inc. and Helios, subscription service MoviePass said that customers will have a reduced monthly fee of $9.95. This amount will allow them to watch one film per day in a theater. Following the announcement, Missouri-based movie chain AMC Theatres threatened the company of pursuing legal action to stop MoviePass’ program from being applied by consumers in its theaters, Variety reported.
AMC stated that MoviePass is “a small fringe player” and that its service model does not align with the interest of viewers, theaters, and studios. Because of a sluggish summer box office and financial failures in some films, exhibitions stocks declined, including AMC’s. And when MoviePass announced its new price, AMC’s shares dropped 2.57 percent, reaching $13.25.
AMC further stated that lowering its pricing to adapt to the model of MoviePass would prevent the company from maintaining its theaters’ good quality in terms of service and consumer experience. Mitch Lowe, the CEO of MoviePass, told Variety that the deal is not yet finalized.
Lowe also expressed concerns over AMC’s reaction and elaborated that this can lead to customers misunderstanding that they can’t apply the service at AMC theaters. Still, after MoviePass announced its plan to reduce monthly fees, The Hollywood Reporter reported that its website encountered difficulties in keeping up with the upsurge in traffic. This sudden increase resulted in the website crashing on Tuesday due to overuse.
The usual traffic for MoviePass amounts to 10,000 unique users weekly. However, six hours after the news of the price cut, 500,000 people visited the website. Lowe said that many visitors went to the website to sign up, but he did not specify the number of new subscribers.
The Hollywood Reporter also wrote that existing MoviePass subscribers will also start paying the MoviePass monthly fee of $9.95 when the next billing cycle starts.
Upgrading school safety—how should it be done?
Companies with safety enhancement solutions will find opportunities in schools looking to upgrade their safety measures.
Expat leadership: Lessons from hugely successful immigrant women
Here are three things powerful immigrant professionals have in common that can help any aspiring workplace "outsider" lead a team.
Precious metals rise amid expectations of a Fed rate cut in July
Gold and the precious metals all rose as expectations rise for a Fed rate cut at the July FOMC.
Brain-powered hearing aids: The next big thing in biotech?
A team at Columbia University is creating hearing aids that use artificial intelligence (AI) and brain wave monitoring, bringing brain-powered...
Why feasibility studies are crucial when searching for specific types of upcoming projects
Feasibility studies indicate the potential of upcoming contracting opportunities in the public sector marketplace.
- Business3 weeks ago
Why big data and machine learning is the future for commercial real estate
- Sponsored3 weeks ago
What the second half of 2019 holds for Bitcoin in Africa
- Crypto3 weeks ago
Using blockchain in high fashion
- Sponsored3 weeks ago
4 misconceptions retailers still have about sales analytics