New Subscription Offering Continues at a
Monthly Price of $9.95, Includes New Releases, Suspends Peak
Pricing and Ticket Verification and Introduces Boundaries to Ensure
Long-Term Stability
MoviePass™, the nation’s premier movie theater subscription
service and a majority-owned subsidiary of Helios and Matheson
Analytics Inc. (Nasdaq:HMNY) (“Helios”), announces its new
subscription plan and business model effective August 15, 2018.
MoviePass’ new subscription plan retains its industry-low monthly
subscription rate of $9.95 and at the same time creates a long-term
and sustainable business model. The new plan will include many
major studio first-run films. For our subscribers who have migrated
to the new subscription plan, we are suspending Peak Pricing and
Ticket Verification. MoviePass continues to be the most widely
enjoyed theatrical subscription service in the United States,
available at 91% of the theaters.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20180806005321/en/
MoviePass launches new pricing plan built
for the mass consumer (Photo: Business Wire)
We have heard – and we have listened to – our MoviePass
Community and we will not be raising prices to $14.95 a
month. The new plan is focused on usage by the bulk of our
subscribers who have historically used MoviePass to attend three
movies or fewer a month. Additionally, the new plan addresses past
misuses which imposed undue costs on the system, including ticket
scalping, unauthorized card usage and other activities, which in
the past necessitated the use of certain remedial measures that
have sometimes been inconvenient for our subscribers.
Beginning August 15, 2018, MoviePass subscribers will transition
to the new plan upon their renewal, which gives subscribers up to
three movies a month for $9.95, and up to a $5.00 discount for any
additional movie tickets. Because only 15 percent of MoviePass
members see four or more movies a month, we expect that the new
subscription model will have no impact whatsoever on over 85
percent of our subscribers.
“We are well aware that during our journey to innovate
moviegoing — a form of entertainment that over time has become
unaffordable and broken — we’ve encountered many challenges.
However, any industry-wide disruption like MoviePass requires a
tremendous amount of testing, pivoting, and learning,“ said Mitch
Lowe CEO of MoviePass. “We discovered over several months of
research that our customers value a low monthly price above nearly
everything else, so we came together to create a plan that delivers
what most of our loyal MoviePass fans want, and one that, we
believe, will also help to stabilize our business model. While most
of our loyal subscribers shared the passion for this new accessible
movie experience and experimented fairly, the fact is that a small
number have used our business model to a point where it was
compromising the business’ long-term stability. As is true with any
new company, we’ve evolved to accommodate what has become an
unprecedented phenomenon. We are now creating a framework to
provide the vast majority of subscribers with what they want most –
low cost, value, variety, and broad availability – and to bring
some moderation to the small number of subscribers who imposed
undue cost on the system by viewing a disproportionately large
number of movies. We believe this new plan is a way for us to move
forward with stability and continue to revitalize an entrenched
industry and return moviegoing to everyone’s financial reach.”
Monthly subscribers will be given the opportunity to subscribe
to the new plan when their current plan comes up for renewal
beginning August 15, 2018. Annual subscribers will not be affected
by this plan until their renewal dates. Any subscriber can still
cancel anytime.
“All along, we’ve known that we need to invest heavily to prove
our business model and bring enough subscribers into the business
to truly understand their usage patterns and allow us to leverage
ancillary revenue opportunities,” said Ted Farnsworth, Chairman and
CEO of HMNY. “However, one year and 3 million plus members later,
it has become clear that a small number — only 15 percent — of the
subscriber base has been stressing the system. We believe this new
business model will immediately reduce our burn so we can refocus
our efforts where they belong: making a permanent and positive
change in this industry by creating an amazing theater-going
experience and building a company that continues to benefit our
nationwide community.”
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 moviepass.com.
Cautionary Statement on Forward-looking Information
Certain statements in this communication contain forward-looking
statements 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, including without limitation statements containing the
words “believe”, “may”, “plan”, “will”, “estimate”, “continue”,
“anticipate”, “intend”, “expect” and similar expressions. All
statements other than statements of historical fact included in
this communication are forward-looking statements.
Such forward-looking statements are based on a number of
assumptions. Although Helios’ management 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 (including, without limitation, whether
the new subscription plan will stabilize the MoviePass business
model and lower the burn and the impact of the new model on
MoviePass members) may differ significantly 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;
whether our new subscription plan and business model will be
successful; our ability to successfully develop the business model
of MoviePass; our ability to retain our existing subscribers and
market and sell our services to new subscribers following the
change in the subscription plan and business model; our ability to
integrate the operations of MoviePass and other acquired businesses
into our operation; and the risk factors described in Helios’
Annual Report on Form 10-K for the fiscal year ended December 31,
2017, its quarterly report on Form 10-Q for the quarter ended March
31, 2018 and other filings, including subsequent current and
periodic reports, information statements and registration
statements filed with the U.S. Securities and Exchange Commission.
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 Helios’ current expectations
and Helios 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/20180806005321/en/
HMNY Contact:The Pollack PR Marketing GroupStephanie
Goldman/Mark Havenner, 310-556-4443sgoldman@ppmgcorp.com /
mhavenner@ppmgcorp.comorMoviePass Contact:LaunchSquad for
MoviePassGavin Skillman, 212-564-3665gavin@launchsquad.com
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