With the largest market share in the cinema industry, AMC (AMC - Free Report) has just launched its own subscription service called AMC Stubs A-List. With this new subscription, AMC stands as Movie Pass’s biggest competitor, seeing as they have a similar model.
AMC Stubs A-List is a monthly subscription for $19.95, exclusively for members of AMC’s loyalty program, AMC Stubs. According to CNN, members will be able to see any movie they want, whatever show time they want to see it, and whether they want to watch it in IMAX or 3D. You will be able to see up to three movies per week, whether you want to watch all the movies in the same day or throughout the week.
On the other hand, we’ve seen a similar subscription in the past with Helios & Matheson’s Movie Pass. Movie Pass is a subscription based movie ticketing service. At $9.95 a month, customers are able to watch only one movie per day for a month, whereas with AMC you can watch it multiple times.
The good thing about AMC’s subscription is that it is available in all AMC theaters, where as you can only use Movie Pass’ subscription in certain theaters. So with AMC, customers have a wider selection to choose from, since their subscription can be used in many different places.
Today, Movie Pass announced that they would be adding more features to their subscription package in light of AMC’s announcement yesterday. Mitch Lowe, the CEO of Movie Pass, said they plan to add on-demand features to their already constructed subscription package. Some of these features will include watching movies in IMAX /3D (which is already available with AMC’s package), as well as the option of bringing a friend with your subscription.
Even though Movie Pass is coming out with these additional features, it may get tough for them, seeing as there are already added benefits within AMC’s package. AMC’s members won’t have to pay an additional fee to use more features, as they are already paying for it within the subscription. With Movie Pass’s additional features, customers will have to pay $2-$6 a ticket.
After AMC’s announcement yesterday, Helios & Matheson’s share price plunged almost 30%, but has regained momentum today, with the stock up 8.01%. AMC’s stock went up by 3.61% today, hitting $17.18 per share.
It seems as though Movie Pass might be bitter about AMC’s announcement, seeing as they tweeted at AMC saying that they have always disparaged their business model, when all along they wanted to make a similar more expensive one. Movie Pass believes AMC is doing this for more profit, where their subscription is more geared towards their customers.
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