MoviePass Escalates Battle With AMC Theatres by Dropping Service from 10 Chains, Including Major Locations in L.A.
Subscription film ticket company MoviePass has ratcheted up its longstanding battle with AMC Theatres by dropping its service from 10 of the chain’s busiest cinemas, including major locations in Los Angeles and New York.
New York-based MoviePass, which offers one movie ticket a day to customers who use its red credit cards, has soared in popularity since it dropped its monthly fee to $9.95 last August. But AMC, the world’s largest cinema operator, blasted the new pricing, saying the startup’s model was unsustainable and could do long-term harm to the film industry. It also threatened legal action to block the service from its theaters.
The feud has only intensified since then. MoviePass, majority owned by data firm Helios and Matheson, now wants a cut of theater owners’ box-office and concession sales, according to people familiar with the matter who were not authorized to comment. MoviePass is seeking $3 per ticket sold through its app, and 20% of concession sales to its customers, these people said.
MoviePass, which counts more than 1.5 million subscribers (up from as little as 20,000 in December 2016), says it has significantly increased attendance at theaters, driving increases in concession sales for exhibitors at a time when domestic admissions are in decline. MoviePass wants to participate financially in that bump.
Read the full story on LATimes.com.