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: HMNY) (“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.
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the full release here:
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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 service.
As of Q3 and beyond, MoviePass is also generating incremental
non-subscription revenue of approximately $4 to $6 per subscriber
per quarter:
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 studios
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 www.hmny.com.
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 www.moviepass.com.
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 risks.
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 effects.
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 www.sec.gov.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180731005582/en/
HMNY Contact:The Pollack PR Marketing GroupStephanie
Goldman/Mark Havenner, 310-556-4443sgoldman@ppmgcorp.com /
mhavenner@ppmgcorp.comorMoviePass Contact:LaunchSquad for
MoviePassGavin Skillman, 212-564-3665moviepass@launchsquad.com
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