Since 2011, MoviePass has offered a service to moviegoers that allows them to pay a monthly subscription fee in exchange for the ticket to one movie per day. The service worked like a credit card, so essentially any theater that used Discover would work with MoviePass. The subscription was based on a tiered system according to Variety, with prices ranging from $15 to 50. But now, after a majority sale to the company Helios and Matheson Analytics, MoviePass is lowering their price to $9.95 per month and it seems to be ruffling a few feathers in the industry.
According to Mashable, AMC is the first theater chain to cry foul over the price drop. The largest theater chain in the United States seems to be confused by where MoviePass is heading with their business plan and doesn’t want any part in finding out, sending out a biting statement that rejects the plan:
“While AMC is not opposed to subscription programs generally, the one envisioned by MoviePass is not one AMC can embrace,” the theater chain said. “We are actively working now to determine whether it may be feasible to opt out and not participate in this shaky and unsustainable program…
“From what we can tell, by definition and absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month”