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AMC Theaters Set to Challenge MoviePass With New $20 Subscription Plan

21 June 2018
AMC Theaters Set to Challenge MoviePass With New $20 Subscription Plan

National movie theater chain AMC is entering the movie-going subscription plan arena dominated by MoviePass with a more expensive but perk-packed plan of its own.

Stubs A-List costs more and is of course limited to AMC theaters, but AMC is taking direct aim at MoviePass with features like seeing multiple movies per day and repeat visits to a movie you've already seen.

And in an earnings call Wednesday afternoon, AMC CEO Adam Aron, while promising that "our program will be profitable", noted that those who come in early on the service will be guaranteed that $20 monthly price for the next year.

"Heard AMC Theaters jumped on board the movie subscription train", the tweet reads.

However, AMC said movie will not be able to carry over from the previous week if they fail to see three films.

An AMC representative told The Verge the service isn't meant to compete with MoviePass. According to the company, MoviePass is accepted at more than 91 percent of theaters nationwide, including AMC Theatres.

That "sustainable price" bit is no doubt a dig at MoviePass. In April, the company's majority owner, Helios and Matheson Analytics, acknowledged in a regulatory filing that there were doubts about MoviePass' ability to stay in business.

It will be up to consumers to decide which deal is best, but it's good to have competition in this space, and I personally think that AMC Stubs A-List will be the more sustainable option despite carrying the bigger price tag. MoviePass pays for full-priced tickets and sells them at a discounted rate in order to capitalize on user data.

Late Tuesday, Helios and Matheson announced it was seeking a reverse split of its shares and that it might delist on Nasdaq if investors don't approve the plan.

AMC Stubs A-List includes all benefits of AMC's existing AMC Stubs Premiere rewards program, including free popcorn and soda refills and upgrades, no online ticketing feeds, and rewards points. 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.

We'll have to see if this move from AMC cuts into the growth projected by MoviePass or not.