AMC Theatres unveiled a monthly subscription service to rival the flagging MoviePass today.
The theater chain’s loyalty program, AMC Stubs, allows subscribers to see up to three movies a week for a monthly fee of $19.95. That’s more expensive than the $9.95 monthly fee for MoviePass, but AMC’s plan gives access to premium format screenings like IMAX and 3-D.
The new subscription model is the latest salvo in a heated battle for what the movie business most craves: frequent moviegoers. AMC, which has blocked MoviePass sales at some of its theaters, has been a vocal opponent of MoviePass’ model.
AMC Theatres chief executive Adam Aron pointedly noted Wednesday that AMC’s program was set at “a sustainable price.” Since MoviePass slashed its monthly fee, questions have mounted over the long-term viability of its economics.
MoviePass has attracted 3 million members, but the stock price of the service’s parent company, Helios and Matheson, has dropped from $38 a share to 44 cents a share. MoviePass pays for full-priced tickets and sells them at a discounted rate in order to capitalize on user data.
AMC is estimating that subscription members will see an average of 2.5 movies a month. The theater chain expects the service could cost the company $5-10 million in ticket revenue in the next six months, but that those losses are worth future gains.
