Owner of Theater Subscription Service
Highlights Growth of New Model for Movie Ticketing
Data and technology company Helios and Matheson Analytics Inc.
(Nasdaq: HMNY) (“Helios”), owner of MoviePass, today reflected on
its one year anniversary of its revolutionary movie subscription
service and formalized plans for it new, sustainable business
model.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20180815005435/en/
Helios and Matheson issues MoviePass
progress report (Photo: Business Wire)
One year ago, today, Helios announced its acquisition of a small
U.S. movie theater subscription company, MoviePass. With only eight
employees at the time, MoviePass was considered a fringe player
supporting 720 partnered screens and having 15,000 subscribers.
When MoviePass lowered its subscription price from $20 per month to
$9.95 per month, it created a movement bringing movie enthusiasts
back to movie theaters and became a boon to a declining industry
which, one year later, is showing signs of a financial rebound.
Within the first several days, MoviePass grew 1,000%, from
15,000 subscribers to 150,000. MoviePass continued the quick growth
trajectory, acquiring one million subscribers in just four months.
This growth enabled MoviePass to close deals with Costco, iHeart
Radio, and major Hollywood studios.
Now, MoviePass has over 2,000 partner screens while also
available for use at 91% of movie theaters nationwide. MoviePass
recently launched a new subscription model which is projected to
reduce its cash deficit by approximately 60% or more while allowing
its subscribers to enjoy three movies per month for $9.95 per month
and additional movies at a discounted price, a “win-win” for its
subscribers and the industry.
“We far exceeded our 2017 expectation for Helios and MoviePass,”
said Ted Farnsworth, Helios chairman and CEO. “In
our agreement to acquire MoviePass in August 2017, MoviePass had a
performance milestone to achieve 100,000 subscribers in one year.
We were all surprised to see the subscriber growth surpass that
milestone in one week. It is rare to see surprises of this
magnitude. We’ve reached an important point in our company where,
after a year of research and analysis, we believe we have
fine-tuned the MoviePass business model to fit our unique growth
rate. Under the new plan, we believe we are creating a more
sustainable path for MoviePass and its loyal subscribers.”
“Measured by number of movie tickets sold, we are the fourth
largest theater chain in the country without any brick and mortar
locations, or screens,” said MoviePass CEO Mitch Lowe. “It’s an
amazing milestone considering we feel like we’ve just begun.”
Helios/MoviePass One Year Highlights:
- Helios acquired MovieFone which will be
integrated with MoviePass.
- Helios launched MoviePass Ventures at
Sundance Film Festival 2018.
- Helios launched MoviePass Films with
Emmett Furla Oasis Films and veteran Hollywood producers Randall
Emmett and George Furla.
- MoviePass Films signed Bruce Willis for
its first production, 10 Minutes gone.
- MoviePass E-Ticketing partners have
seen a 38% growth in just the last few weeks.
- MoviePass now accounts for
approximately 6% of all movie tickets sold in the U.S. in any given
week.
- MoviePass has purchased over $450
million worth of tickets in the last 12 months.
- 49% of MoviePass subscribers are seeing
movies they wouldn’t normally see in theaters.
- MoviePass has partnered with 2 major
studios and over 10 independent distributors and was engaged to
promote their films, showing efficacy in marketing and buying a
greater percentage of their box office, showing it can persuade
subscribers to see particular titles over others.
- HMNY, MoviePass’ parent, established
MoviePass Ventures in January 2018, and co-acquired rights to two
movie titles, American Animals and Gotti, and brought its
subscriber base a series of MoviePass subscriber-only events. It
has begun to monetize the titles downstream, beyond the theatrical
window.
- MoviePass conducted a series of
sweepstakes and offers, showing the responsiveness and
receptiveness of its subscriber base, including a 1.5% conversion
rate for a financial services company (compared to an average
0.025% conversion rate) and over 120,000 opt-ins in a 24-hour
period for a movie-related sweepstakes.
- MoviePass is one of the most widely
read business stories of 2018.
- 47% of MoviePass subscribers are
recommending more movies to friends.
- 70% of MoviePass subscribers state that
they somewhat or strongly agree that they are still more likely to
see a film despite a low Rotten Tomatoes score.
- Beast, a Roadside Attractions’/30West’s
production: MoviePass-supported and E-ticketing screens grossed
54.7% higher than theaters that MoviePass does not support.
- MoviePass ticket purchases represented
16.8% of Thursday night previews for Paramount’s Book Club.
- During the July 4th 2018 holiday week,
MoviePass accounted for over 5% of Universal Pictures’ First Purge,
a 3,000+ screen wide release.
- Hearts Beat Loud, a Sundance favorite:
MoviePass represented 40% of the film’s box office take in its
first full week of its theatrical release in New York and Los
Angeles.
- Tag, which MoviePass promoted in-app,
represented 13% of the film’s opening weekend domestic box
office.
- A Miseducation of Cameron Post:
MoviePass represented 57% of the film’s opening weekend NYC
release.
- Blindspotting: MoviePass contributed
22.7% of its opening weekend domestic box office, and 24.7% through
the first Tuesday following its release (37.6% domestic box office
contribution on Monday, 30.8% domestic box office contribution on
Tuesday) that included advance member screenings.
About Helios and Matheson Analytics
Helios and Matheson Analytics Inc. (Nasdaq:HMNY) (“Helios”) is a
provider of information technology services and solutions, offering
a range of technology platforms focusing on big data, artificial
intelligence, business intelligence, social listening, and
consumer-centric technology. Helios currently owns approximately
92% of the outstanding shares (excluding options and warrants) of
MoviePass Inc., the nation's premier movie-theater subscription
service. Helios' holdings include RedZone Map™, a safety and
navigation app for iOS and Android users, and a community-based
ecosystem that features a socially empowered safety map app that
enhances mobile GPS navigation using advanced proprietary
technology. Helios is headquartered in New York, NY and listed on
the Nasdaq Capital Market under the symbol HMNY. For more
information, visit us at www.hmny.com.
About MoviePass Inc.
MoviePass Inc. (“MoviePass”) is a marketing technology platform
enhancing the exploration of film and the moviegoing experience. As
the nation's premier movie-theater subscription service, MoviePass
provides film enthusiasts the ability to attend select new movies
in theaters. The service, now accepted at more than 91% of theaters
across the United States, is the nation's largest theater
network. Visit us at moviepass.com.
Cautionary Statement on Forward-looking Information
Certain statements in this communication contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 or under Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended (collectively, “forward-looking statements”) that
may not be based on historical fact, but instead relate to future
events, including without limitation statements containing the
words “believe”, “may”, “plan”, “will”, “estimate”, “continue”,
“anticipate”, “intend”, “expect”, “project” and similar
expressions. All statements other than statements of historical
fact included in this communication are forward-looking
statements.
Such forward-looking statements are based on a number of
assumptions. Although Helios’ management believes that the
assumptions made and expectations represented by such statements
are reasonable, there can be no assurance that a forward-looking
statement contained herein will prove to be accurate. Actual
results and developments (including, without limitation, the
ability of MoviePass to reduce its cash deficit by 60% while
allowing its members to enjoy more than three movies per month and
the ability to create a more sustainable path for MoviePass) may
differ significantly from those expressed or implied by the
forward-looking statements contained herein and even if such actual
results and developments are realized or substantially realized,
there can be no assurance that they will have the expected
consequences or effects. Risk factors include, among other things:
Helios’ capital requirements and whether or not it will be able to
raise capital as needed; the success of MoviePass’ cost-reduction
and subscription revenue increase measures; the ability to
successfully develop the business model of MoviePass; the ability
to integrate the operations of MoviePass, MoviePass Ventures,
MoviePass Films, Moviefone and other acquired businesses into
Helios’ operation; MoviePass’ ability to retain its existing
subscribers and market and sell its services to new subscribers,
and the risk factors described in Helios’ Annual Report on Form
10-K for the fiscal year ended December 31, 2017, its quarterly
report on Form 10-Q for the quarter ended June 30, 2018 and other
filings, including subsequent current and periodic reports,
information statements and registration statements filed with the
U.S. Securities and Exchange Commission. You are cautioned to
review such reports and other filings at www.sec.gov
Given these risks, uncertainties and factors, you are cautioned
not to place undue reliance on such forward-looking statements and
information, which are qualified in their entirety by this
cautionary statement. All forward-looking statements and
information made herein are based on Helios’ current expectations
and Helios does not undertake an obligation to revise or update
such forward-looking statements and information to reflect
subsequent events or circumstances, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180815005435/en/
HMNY Contact:The Pollack PR Marketing GroupStephanie
Goldman/Mark Havenner, 310-556-4443sgoldman@ppmgcorp.com /
mhavenner@ppmgcorp.comorMoviePass Contact:LaunchSquad for
MoviePassGavin Skillman, 212-564-3665moviepass@launchsquad.com
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