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MoviePass Will No Longer Cover Certain AMC Theatres

January 26, 2018 20:08·
MoviePass No Longer Covering Certain AMC Theatre Locations

MoviePass No Longer Covering Certain AMC Theatre Locations

Considering the average price of a movie ticket in the U.S. is $8.89, it left many scratching their heads as to the economics.

Though AMC is the country's biggest chain, MoviePass probably could tell the relationship wasn't going to last. On an annualized run rate basis, that's over $135 million to AMC's gross profits - which doesn't include concession sales from MoviePass subscribers.

On its part, AMC said it has not restricted MoviePass acceptance at its theaters and urged angry MoviePass customers to contact that company for clarification. But it still raises concerns for users and investors, and is worth examining. Is it because AMC is finding some way to block MoviePass credit cards?

MoviePass, are you okay? The thinking goes like this: Of course it's signed up 1.5 million people, but eventually it will collapse under its own weight because it's financially unsustainable. Essentially, MoviePass will no longer cover ticket purchases at certain big market AMC theaters such as the Empire 25 in NYC, the Universal City Walk, AMC Loews Boston Common and the AMC Century Plaza.

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MoviePass has a plan for this. The idea was that in exchange for promotion in the MoviePass app and other perks, theaters would give MoviePass a discount on tickets.

But AMC has never been interested. As Deadline points out, back in November AMC CEO Adam Aron confirmed MoviePass is paying full price for the tickets, but also that each one costs $11.88. "We advise customers to always double check the MoviePass app for the most up-to-date list of participating theaters".

"We already know in past testing that MoviePass subscribers are not theater-loyal", Farnsworth said. "They're happy to drive by a theater that may be closer to a theater that will accept MoviePass - because of the MoviePass value".

Is a surprise twist for MoviePass coming out of the Sundance Film Festival where they announced they would be co-acquiring indie movies, such as The Orchard's American Animals, some of the monthly movie ticket's subscribers learned today that their app and cards no longer work at certain AMC venues, i.e. the Empire 25 in New York City. The answer to that question will have huge implications for the long-term financial viability of MoviePass.

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