MoviePass, the company that plans to revolutionize movie theaters with a flat monthly ticket rate, has added another 500,000 new paying subscribers since December 12, 2017, reaching 1.5 million subscribers in just five months. Though MoviePass has been around for several years, in August it was acquired by Helios and Matheson Analytics Inc (NASDAQ:HMNY) and lowered the monthly subscription rate to just $9.95.
Helios and Matheson shares reacted to the news, rising 3.5% to $7.16 as of this writing.
Helios and Matheson CEO Ted Farnsworth commented, “MoviePass™ is attracting people back to the movie theaters by lowering their cost, which we believe is transformational for the industry […] We believe the data MoviePass™ collects from these million and a half movie-goers will become an important asset to our partners and the future of the movie industry.”
MoviePass™, led by Mitch Lowe, its Chief Executive Officer, worked with HMNY to change the MoviePass™ monthly subscription fee to $9.95 in August 2017 resulting in the service’s recent national attention and success in attracting new paying subscribers.
“Based on the dramatic increase in the number of MoviePass subscribers over such a short period of time, we believe MoviePass will continue to grow its subscriber base significantly,” said Mitch Lowe, Chief Executive Officer of MoviePass™. “We’re giving people a reason to go back to the movie theaters and they’re going in droves. With awards season here, we hope we can make Hollywood and exhibitors very happy by filling seats with eager audiences.”
On the ratings front, Maxim analyst Brian Kinstlinger reiterated a Buy rating on HMNY, with a price target of $25, in a report issued on January 3. The current price target represents a potential upside of 243% from where the stock is currently trading. According to TipRanks.com, Kinstlinger has a yearly average return of 8.4%, a 59% success rate, and is ranked #733 out of 4755 analysts.
Helios & Matheson provides information technology consulting, training services, software products and enhanced suite of services of predictive analytics. Its solutions cover the entire spectrum of IT needs, including applications, data, and infrastructure.