MoviePass drops monthly price of unlimited movies to just $10

Well, there is. It’s called MoviePass, and now for just $10 a month you can see one movie a day in nearly any theater. The subscription firm still was able to do business by offering subscribers debit cards that it says are accepted at 91% of USA theaters. For just $10 every month, subscribers can see one movie every day. The company just sold a majority stake to raise the funds they need and intends to IPO by March.

But MoviePass disagrees and is banking on increasing overall movie attendance enough for movie theater owners and the studios to take notice. The stock tumbled 61 percent this year through Tuesday. Only hours after that announcement, AMC Theaters, the largest theater chain in the United States, threatened legal action against MoviePass, questioning the long-term viability of the company’s business model. The company is consulting with its lawyers in an attempt to prevent MoviePass being used in its theaters.

Ted Farnsworth, the CEO of Helios and Matheson says that the company’s goal is to get a large subscriber base and then collect data on them, which could, in theory, be used to target specific advertisements to each user. Insiders told the Hollywood Reporter it had about 20,000 subscribers on the $50 plan. Like plenty of other service companies from Facebook to Roomba, MoviePass can turn around and sell the data to advertisers. Well, I think it all boils down to how much of a movie buff you are and if you will, in fact, get your money’s worth.

The top four cinema operators, led by AMC Entertainment Holdings Inc. (NYSE: AMC) lost $1.3 billion in market value early this month after a disappointing summer. What’s more, the cost of tickets has almost doubled in the last 20 years, according to Box Office Mojo. BoxOfficeMojo says movie tickets in the USA cost $8.89 on average. If that is indeed true and MoviePass can deliver on that promise, why in the world would AMC push back against a program that would put more butts in its seats?

Check out the MoviePass FAQs on how the process works. If MoviePass can drive more people to theaters that would benefit the exhibitors, although the overall impact is “more negligible than anything”, Wold wrote.

The company named Mitch Lowe its new CEO previous year.

If you haven’t heard of MoviePass before today, don’t worry you’re not alone.

Many people love the idea of being able to sit at home and binge watch their favorite TV shows and older movies, but what if you could do that at the theater with new releases?