Helios and Matheson Analytics Inc (HMNY)

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MoviePass to Shift Business Model to Focus on its Own Films
The company has films with Mel Gibson, Bruce Willis, Michael Chiklis and Al Pacino in its pipeline

Trey Williams | March 6, 2019 @ 6:15 AM
In its latest effort to shore up finances, MoviePass has announced plans for a new business model it says will prioritize self-generated revenue instead of reliance on earnings from exhibitors and studios.

The plan is to forge “a much more interconnected” relationship between the company’s monthly movie theater subscription service and the film production business it launched last year, MoviePass Films, according to a statement released Wednesday. The company will make the films it produces available to MoviePass subscribers, which it hopes will both increase the film’s box office potential, and lead to an expansion of the subscription service itself.

As part of this plan, the company says MoviePass Films will accelerate production of projects for theatrical release, and increase distribution deals for retail, home video, and transactional and international sales. The company says it will also emphasize “technology development,” and stepped up fraud prevention efforts.

The effort will be supported by MoviePass’ Moviefone advertising and information service.

“We have gained a tremendous amount of insight into moviegoers and the industry over this past year and a half,” MoviePass CEO Mitch Lowe said in a statement. “MoviePass subscription, MoviePass Films and Moviefone now have a winning combination that we believe will drive consumers to our films, and re-energize casual moviegoers to go more often and see great films in local theaters – films that consumers often wait to see much later through streaming services.”

“By spending the last several months analyzing the many different aspects of our prior business model, in terms of what worked and what didn’t, I believe we’ve been able to illuminate the path forward,” Ted Farnsworth, CEO of MoviePass parent company Helios and Matheson Analytics, continued. “We’ve taken a deep dive to understand our unique ecosystem and I believe we’re now ready to move forward at a rapid pace. I see this as an exciting time for MoviePass and its sister companies, because we’re taking our original vision for subscription, altering it for the better, and proceeding with significant clarity.”

https://www.thewrap.com/moviepass-to-shift-business-model-to-focus-on-its-own-films/