Will AMC Theaters lose money on this service? Despite their complicated past, AMC denies that they're throwing down the gauntlet in front of MoviePass and instead told The Verge, "We understand the comparison, but we're focused on our own program and on delivering the very best, most reliable movie-going value option in the entertainment industry, which is what we believe AMC Stubs A-List provides to our guests".
Theatres, the world's largest movie theater chain, on Wednesday unveiled a $20-a-month subscription service to rival the flagging MoviePass.
"We believe that our current and future loyal guests will be interested in this type of program", said Adam Aron, CEO and President of AMC Theatres. Since MoviePass slashed its monthly fee, questions have mounted over the long-term viability of its economic model.
MoviePass has been a controversial but innovative way to get people back to theaters by offering a movie per day all for the cost of $9.99/month subscription. CNNMoney reported in May that MoviePass' parent company, Helios and Matheson Analytics, burns through approximately $21.7 million each month to keep MoviePass in operation. MoviePass pays for full-priced tickets and sells them at a discounted rate in order to capitalize on user data.
Theatres on Wednesday said it would launch a subscription service that will allow customers to watch up to three movies per week for a monthly fee, challenging a rival service offered by MoviePass. Further, the addition of Imax to AMC Stubs A-List program will not impact the large format exhibitor's studio arrangements and the incremental attendance should result in increased revenues. "Heard AMC Theaters jumped on board the movie subscription train". It was a smashing success when it came out a few years ago; so much so that the company had some difficulty keeping up with the number of subscribers it acquired in a short period.