How AMC Theatres plans to compete with MoviePass
AMC Theatres introduced a new subscription-based program on Wednesday aimed at giving MoviePass some competition.
AMC Stubs A-List, which rolls out June 26, will allow members to see three movies each week for a monthly fee of $19.95.
Each subscription comes with a three-month commitment, and permits users to make advance reservations and see movies in all formats, including 3D and IMAX.
"We believe that our current and future loyal guests will be interested in this type of program, as AMC Stubs A-List rewards guests with something that no one else offers: the very best of AMC, including IMAX, Dolby Cinema and RealD 3D up to three times per week, for one simple, sustainable price," AMC Theatres CEO and president Adam Aron said in a statement obtained by CNN Money.
The comment has been interpreted to be a dig at MoviePass, which was originally founded in 2011 and has been seen as a major disruptor for the movie business. Currently, it offers two plans: one that costs $9.95 per month and allows users to see a new 2D film every day, or a $7.95 per month version, for which users may see three 2D movies per month. According to the company, MoviePass is accepted at more than 91 percent of theaters nationwide, including AMC Theatres.
However, there have been questions raised recently about the sustainability of MoviePass' business model. Variety reported that the company pays full price for tickets and then discounts them. In April, the company's majority owner, Helios and Matheson Analytics, acknowledged in a regulatory filing that there were doubts about MoviePass' ability to stay in business.
"MoviePass has incurred losses since its inception and has a present need for additional funding. These factors raise substantial doubt about the Company’s ability to continue as a going concern," the document reads.
"If we are unable to obtain sufficient amounts of additional capital, we may be required to reduce the scope of the Company’s planned growth or otherwise alter our business objectives and operations, which could harm our business, financial condition and operating results."
The company wasted no time in taking its own jab at AMC Theatres on Wednesday. On its official Twitter page, MoviePass accuses AMC Theatres of "repeatedly" attempting to sabotage them while looking to turn a profit of its own.
"Heard AMC Theaters jumped on board the movie subscription train," the tweet reads. "Twice the price for 1/4 the theater network and 60% fewer movies. Thanks for making us look good AMC!" MoviePass added.
