BREAKING 8/6: MoviePass will limit customers to three movies per month (plus MANY other changes)

Hotlantan

Hotlantan

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MoviePass will limit customers to three movies per month
https://money.cnn.com/2018/08/06/media/moviepass-three-movies-per-month/index.html
https://www.wsj.com/articles/moviepass-slashes-offering-to-three-films-a-month-1533560401



MoviePass, the struggling movie subscription service, will limit customers to three movies per month.
The company is trying to burn less cash so it can stay in business.

Under the previous plan, customers could see one movie per day in theaters. The change to three movies per month takes effect August 15. MoviePass says 85% of its customers already see no more than three per month.

"It has become clear that a small number — only 15 percent — of the subscriber base has been stressing the system," Ted Farnsworth, the CEO of parent company Helios and Matheson (HMNY), said in a news release.

If a subscriber wants to see more than three movies per month, the company will offer a discount of up to $5 on additional movie tickets.

Related: 'Talk of our demise is greatly exaggerated,' says MoviePass

The company also announced Monday that it will keep the monthly subscription price at $9.99. It is backing away from a plan, announced just last week, to raise the price to $14.99.

As part of its new model, MoviePass is doing away with a bunch of other changes, too.

The company will suspend surge pricing, which sometimes added as much as $8 to the cost of an individual ticket. And it will no longer enforce ticket verification, which required users to take a picture of their ticket stub and submit it to the company as a way to stop abuse of the service.

The new plan will also include "many major studio first-run films," according to the company. That reverses a change announced last week that would have cut access to blockbusters within the first two weeks of release.

MoviePass CEO Mitch Lowe described the changes in an interview earlier Monday with The Wall Street Journal.

"I should have accelerated the process of reducing the burn faster in hindsight," he told the newspaper. "Now I realize no matter how patient investors say they will be, they never are."

Related: Welp. MoviePass stock just fell back below $1

Helios and Matheson stock has plunged as investors have grown increasingly doubtful about the viability of MoviePass.

The stock plunged from $39 last October to just 8 cents last month. The company approved a reverse split — a cosmetic change that boosted the stock 250-fold, back up to $21. Since then it's fallen all the way back to 7 cents.

The stock gained 2 cents on Monday after the new plan was announced.

Two weeks ago, the company also borrowed $5 million in cash to pay its merchant and fulfillment processors after it had a service outage and couldn't afford to pay for movie tickets. It later said it paid back that loan.
 
Knew something was going to have to change but from basically 30 to 3 that's like 90% drop. Granted; if they would've started at 3 movie a month for $9 that wouldn't have been so bad
People would've still signed up. But to start off at basically 30 and drop to 3; I doubt that they'll hold onto their subcribers. It's probably a wrap for them, bruh.
 
On OCTOBER 11, 2017 if you had bought the current equivalent of ONE share of stock for the MoviePass parent company HMNY you could have paid as much as $9,715.00
On AUGUST 6, 2018 - today - that same amount of stock that you could have paid as much as $9.715.00 for last October is now worth slightly more than EIGHT CENTS.

To put it another way, ONE MILLION DOLLARS invested at its peak would now be worth TWELVE DOLLARS and FIFTY CENTS. Up from EIGHT DOLLARS and SEVENTY FIVE CENTS on Friday.
https://finance.yahoo.com/quote/HMNY/history/
https://www.nasdaq.com/symbol/hmny

MoviePass' owner is trading at an all-time low of $0.07, days after a drastic 1-for-250 reverse stock split
Aug. 3, 2018, 1:13 PM
https://www.businessinsider.com/mov...a-new-all-time-low-after-reverse-split-2018-8

5b3e6994967ba50c118b4796-750-375.jpg

The Joker watching money go up in smoke in "The Dark Knight."

  • MoviePass owner Helios and Matheson Analytics was trading below $0.07 on Friday, an all-time low for the company.
  • Last Wednesday it was at $14 following a 1-for-250 reverse stock split.
  • A lot has happened since then.

Though MoviePass and its parent company, Helios and Matheson Analytics ( HMNY ), claim everything is fine, the market begs to differ.

On Friday, stock for HMNY was trading below $0.07, an all-time low for the company that acquired the movie-theater subscription service last August.

The crash by the HMNY stock follows an awful week and a half for the company. In late July, HMNY CEO Ted Farnsworth expressed optimism to Business Insider that the stock price would stabilize after a reverse split. That didn't happen. The 1-for-250 reverse stock split got the stock from $0.09 to around $14 last Wednesday. But it has been falling since.

With the stock trading above a dollar last week, it only had to stay at $1 or above for 10 days (and have a market cap of at least $50 million) to stave off the possibility of being delisted from the Nasdaq in mid-December. But HMNY was below a dollar days later as a string of misfortune hit MoviePass.

By the end of last week, the app temporarily shut down, leading to HMNY having to borrow $5 million cash to get it back up and running. Customers also complained that the biggest movie of the weekend, "Mission: Impossible - Fallout," was not available on the app and that there was across-the-board surge pricing for most of the screening times for available movies.

Following another service interruption to the app over the weekend, this Monday MoviePass CEO, Mitch Lowe, announced in an all-hands meeting that the company was drastically changing how subscribers could use the app as no major blockbusters would be available on the service going forward. On Tuesday, the company revealed that it would be changing its monthly subscription price from $9.95 a month to $14.95 .

Throughout, MoviePass has tried to put on a brave face. On Thursday it released a press release with the header " We're Still Standing, " boasting how important it had been to this year's impressive domestic box office (which is up around 8% from last year ).

But you only have to glance at what Wall Street is saying Friday to realize the situation is dire.
 
Dude I tried to go see The Equalizer at Rrgal Atlantic Station today and it said the entire movie theater is now "unauthorized"...

I wonder if that means they don't accept Moviepass as a form of payment anymore.
 
it's easier too give ppl more later than it is to take things back

at its face moviepass is still a deal but it doesn't have the appeal it had originally and now has legit comp with a list

a list gives you 3 flicks a week
moviepass giving 3 for the month
 
They have to have a backup plan to either make cancelling difficult (can only terminate by phone) or to offer something to members to avoid cancelling, like a free month. This is a major fail.
 
Tom Slick said:
They have to have a backup plan to either make cancelling difficult (can only terminate by phone) or to offer something to members to avoid cancelling, like a free month. This is a major fail.
Click to expand...
So far, I the only thing I saw said if I cancel, I cant sign up again for 9 months. I think they need some people to cancel.
 
I already joined A-List

going to cancel Moviepass in a month or two. A list gives me three a week and includes IMAX/3D and I can purchase tickets ahead of time without any hassle.
 
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Peaking pricing is gone, but that shit with new movies :smh:

850credit said:
The email they sent said 85 percent of their subscriber base see 3 or less movies a month. They are probably trying to get the other 15 percent to be missed off and cancel. That's who is making them unprofitable.

I am part of the 15 percent
Click to expand...

Shit, I've seen three in a week.
 
Hotlantan said:
On OCTOBER 11, 2017 if you had bought the current equivalent of ONE share of stock for the MoviePass parent company HMNY you could have paid as much as $9,715.00
On AUGUST 6, 2018 - today - that same amount of stock that you could have paid as much as $9.715.00 for last October is now worth slightly more than EIGHT CENTS.

To put it another way, ONE MILLION DOLLARS invested at its peak would now be worth TWELVE DOLLARS and FIFTY CENTS. Up from EIGHT DOLLARS and SEVENTY FIVE CENTS on Friday.
https://finance.yahoo.com/quote/HMNY/history/
https://www.nasdaq.com/symbol/hmny

MoviePass' owner is trading at an all-time low of $0.07, days after a drastic 1-for-250 reverse stock split
Aug. 3, 2018, 1:13 PM
https://www.businessinsider.com/mov...a-new-all-time-low-after-reverse-split-2018-8

5b3e6994967ba50c118b4796-750-375.jpg

The Joker watching money go up in smoke in "The Dark Knight."

  • MoviePass owner Helios and Matheson Analytics was trading below $0.07 on Friday, an all-time low for the company.
  • Last Wednesday it was at $14 following a 1-for-250 reverse stock split.
  • A lot has happened since then.

Though MoviePass and its parent company, Helios and Matheson Analytics ( HMNY ), claim everything is fine, the market begs to differ.

On Friday, stock for HMNY was trading below $0.07, an all-time low for the company that acquired the movie-theater subscription service last August.

The crash by the HMNY stock follows an awful week and a half for the company. In late July, HMNY CEO Ted Farnsworth expressed optimism to Business Insider that the stock price would stabilize after a reverse split. That didn't happen. The 1-for-250 reverse stock split got the stock from $0.09 to around $14 last Wednesday. But it has been falling since.

With the stock trading above a dollar last week, it only had to stay at $1 or above for 10 days (and have a market cap of at least $50 million) to stave off the possibility of being delisted from the Nasdaq in mid-December. But HMNY was below a dollar days later as a string of misfortune hit MoviePass.

By the end of last week, the app temporarily shut down, leading to HMNY having to borrow $5 million cash to get it back up and running. Customers also complained that the biggest movie of the weekend, "Mission: Impossible - Fallout," was not available on the app and that there was across-the-board surge pricing for most of the screening times for available movies.

Following another service interruption to the app over the weekend, this Monday MoviePass CEO, Mitch Lowe, announced in an all-hands meeting that the company was drastically changing how subscribers could use the app as no major blockbusters would be available on the service going forward. On Tuesday, the company revealed that it would be changing its monthly subscription price from $9.95 a month to $14.95 .

Throughout, MoviePass has tried to put on a brave face. On Thursday it released a press release with the header " We're Still Standing, " boasting how important it had been to this year's impressive domestic box office (which is up around 8% from last year ).

But you only have to glance at what Wall Street is saying Friday to realize the situation is dire.
Click to expand...

Omg
 
MoviePass is still a better deal for a lot of people as A List and Movie Club only allow you to see movies at THEIR theaters. MoviePass gets me into either Cinemark or AMC and any other theater. It amazes me that they are in such financial trouble.
 
Funny thing, if I had signed up for it, I probably only would have gone to see 2-3 movies a month anyway. So in theory, it would still be a pretty good deal. But for the people who were on board for the original deal, this is a pretty hard hit.
850credit said:
The email they sent said 85 percent of their subscriber base see 3 or less movies a month. They are probably trying to get the other 15 percent to be missed off and cancel. That's who is making them unprofitable.
Click to expand...
Pretty much this. They expect to retain a certain percentage of users that weren't straining the system, survive the backlash, and then probably pick up some new subscribers down the road when the heat dies down. Them losing the people that were burning a movie (or more) a day is probably an expected outcome.

It's a gamble, but at this point it's a better move than just continuing to bleed money.
 
I want them to succeed,.I really do, but they have lost me as a customer at the end of the year.

The catalyst for signing up was the one movie per day sales pitch. They have taken that away, and so now I'm out. It's a matter of principle now...

I can see all these movies at home on Terrarium for free.
 
doggish_098 said:
I don’t understand why they could charge less than the average price to see a movie
Click to expand...
They were thinking that most people going to use it like they do their gym membership. I use it a whole lot in the beginning and then forget about it. They didn't think people are actually going to usee it. $10 a month was far too low and an unsustainable business model
 
850credit said:
I can see all these movies at home on Terrarium for free.
Click to expand...

i hope you have a bomb ass home theater.

i do have a bomb ass home theater. and i still like to go to the movies for action and sci-fi movies.
 
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Somebody on this board said a good idea... They were better off if they invested in movie theatres and charge $10 a month and make money off of that plus refreshments
 
0utsyder said:
MoviePass is still a better deal for a lot of people as A List and Movie Club only allow you to see movies at THEIR theaters. MoviePass gets me into either Cinemark or AMC and any other theater. It amazes me that they are in such financial trouble.
Click to expand...

Why is it amazing? People have been predicting it for months. They were burning through money fast. I knew they would eventually run out of money. That's why they were adding tweaks. You can't see the same movie. Why? There were those of us buying Black Panther tickets multiple times. They didn't want people to go see Infinity War mad times.

T_Holmes said:
Funny thing, if I had signed up for it, I probably only would have gone to see 2-3 movies a month anyway. So in theory, it would still be a pretty good deal. But for the people who were on board for the original deal, this is a pretty hard hit.

Pretty much this. They expect to retain a certain percentage of users that weren't straining the system, survive the backlash, and then probably pick up some new subscribers down the road when the heat dies down. Them losing the people that were burning a movie (or more) a day is probably an expected outcome.

It's a gamble, but at this point it's a better move than just continuing to bleed money.
Click to expand...

Yeah, They are hoping to lose those of us who were going multiple times a week.

but restricting new movies is unacceptable. I'm not used to waiting for movies now. Waiting two weeks? Now I know when to go to the movies even on opening weekends when it might not be as packed.

There's movies I would go see with Movie Pass that I wouldn't pay for. I wasn't going to pay for Rampage or Skyscraper. That Marky Mark movie in a week. I will go see it with A-List, I wouldn't pay for that shit.

godofwine said:
They were thinking that most people going to use it like they do their gym membership. I use it a whole lot in the beginning and then forget about it. They didn't think people are actually going to usee it. $10 a month was far too low and an unsustainable business model
Click to expand...

This was dumb, extremely dumb. Sometimes it's hard to believe a company with people with experience can be so stupid. One of the main reasons people don't go to the movies is the price. It's an event. For an IMAX movie it can cost over $20 based on location and time. For a regular movie $12 to $15. That's the real reason a lot of people aren't going. Add in around $20 for popcorn and a drink. That can be almost $40. That's why people normally only go once or twice a month. You're paying over $30 for one person.

That's totally different from the gym. People don't go to the gym out of laziness and because they expect instant gratification. I didn't lose 5 pounds in one week? Because it takes effort. You have to have a lot of will power to go to the gym. There's many a days where I really don't feel like going, but force myself, because I'd feel guilty if I didn't.

They should have had the $9.99 as an introductory price to get people in for three months and then raised it to $19.99.
 
Wanted to see BlacKkKlansman this weekend but MoviePass is now restricting to two movies only to choose from :hmm::angry:
 
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