AMC wants to block ticket sales to users of MoviePass.
The world´s largest exhibition company says not so fast to MoviePass.
Movie Pass just recently sold a majority stake to Helios and Matheson Analytics Inc., reducing its base price from 14.95 to 9.95, far less than the average cost of a ticket in the majority of theatres.
This price allows subscribes to see one movie a day, which according to AMC, will make the service lose money as the price level is unsustainable and setting up consumers to ultimate disappointment.
Adding to this, AMC says “the price will not provide sufficient revenue to operate quality theatres nor will it produce enough income to provide film makers with sufficient incentive to make great new movies”, as the statement follows.
The company also said that it is working on not participating in this “shaky and unsustainable program”.
AMC vs MoviePass: a long-going disagreement
Since the concept of MoviePass was introduced in 2011, AMC and Landmark opposed the idea.
A race to win over premium video and on demand content has begun, and both investors and companies are seeing how much the industry is set to change.
As of this past month, the AMC market value felt a downfall of 35%, and like any business, precautions must be taken in further actions.
Mitch Lowe, CEO of MoviePass, explained he is worried that customers might believe that they cannot use the service in AMC complexes.
He added: “This is so much like Blockbuster was when we rolled out Netflix or Redbox” (…) “It’s the big guy being afraid of the little guy offering better value to consumers.”
How does MoviePass work?
Through an iPhone or Android, you sign up to then receive your MoviePass card in 5-to-7 business days.
After your get your membership, you get to browse the sites and showings available, you then use your card at the box office or kiosk.