Helios and Matheson jumps as MoviePass tops 1M subscribers
Shares of Helios and Matheson (HMNY) jumped in afternoon trading after the company said its MoviePass theater subscription services surpassed 1M paying monthly subscribers this month.
MOVIEPASS EXCEEDS 1M MONTHLY SUBSCRIBERS
Helios and Matheson, a majority owner of MoviePass, said this morning that the subscriber base for the movie theater subscription service surpassed 1M paying monthly subscribers, compared to more than 600,000 as of October 18 and approximately 20,000 as of August 14, the day before MoviePass announced its new $9.95 per month subscription price.
In a statement, the company said MoviePass has increased its subscriber base by over 6,500% since the introduction of the $9.95 per month pricing model.
MoviePass shifted to the lower price subscription model on August 15, and noted today that it has reached the 1M subscriber mark in less time than Netflix (NFLX) or Hulu (DIS, CMCSA, CMCSK, FOX, FOXA).
MoviePass CEO Mitch Lowe said:
“Our focus on creating the best movie theater subscription service experience for our subscribers has propelled our growth to date. We believe that growth will continue as we further develop our application, improve customer service, enhance exhibitor relations and fill movie theater seats for incredible films to be released in the future.”
Helios and Matheson announced plans in November to raise its stake in MoviePass from the 53.71% it held in October. After MoviePass dropped its subscription price to $9.95, analysts predicted the service would hit 1M subscribers by the end of the year.
In October, MoviePass said its continued growth trajectory “exceeded MoviePass’ initial projections, and now MoviePass projects that it will acquire at least 3.1 million additional paying subscribers through August 18, 2018, exceeding its previous estimate of 2.5 million subscribers.
“Earlier this month, MoviePass and streaming service Fandor partnered with Costco (COST) to offer a one-year subscription plan for a flat fee of $89.99.
Citron Research has expressed cautious comments on Helios and Matheson, saying in October that the stock will “trade back to $20…You might like product but $1+bill it isn’t. Giving away $1 for .90 no biz.” Helios and Matheson has also been mentioned cautiously by TheStreetSweeper.
Shares of Helios and Matheson are up about 5% in Wednesday’s trading to $6.51.
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