Is Helios and Matheson Analytics Inc (NASDAQ:HMNY) dangling a line to capture even more subscribers to its majority-owned subsidiary burgeoning MoviePass’ user base?
The tech platform gaining quick popularity among movie enthusiasts could very well be the next Netflix of the movie theater enterprise. Having now made the annual subscription even more enticing for a cheaper offer of $6.95 per month, new subscribers now have even more reason to be able to spring for one new movie per day in theaters for an entire year.
A deal that is a limited time offer and one that specifically targets new MoviePass subscribers, MoviePass could grow its user base even stronger with such an affordable subscription deal.
After all, this platform has drawn wildfire momentum in knowing how to diversify its revenue streams thanks to a series of marketing agreements with studios and distributors alike. Add in partnerships with a slew of theater exhibitors into the mix, and MoviePass is playing it smart to succeed in the Wall Street game.
The recent strides the company has been able to make in cultivating key relationships with studios, exhibitors, and marketing partners is the very success inspiring MoviePass to dish out a deal now even more tempting to consumers.
MoviePass works at the majority of theaters in America- beyond 91%. Boasting two million plus subscribers, the platform contributed during recent opening weekends 17% of box office to Paramount Picture’s Annihilation, 10% of box office to Orion Picture’s Every Day, and 9% of box office to Fox Studio’s Love, Simon.
“Our vision has always been to make the movie going experience easy and affordable for anyone, anywhere,” said MoviePass CEO Mitch Lowe. “With the current growth and support that we’ve seen within the last several months, our studio and exhibitor revenues and other marketing partnerships have motivated us to lower the price once again, offering movie lovers greater access to MoviePass.”
MoviePass is currently 81% owned by HMNY. MoviePass first introduced its landmark $9.95 per month subscription plan in August 2017. MoviePass has recently expanded its executive team and increased its profile across the entertainment industry through initiatives like its involvement in the SXSW film festival, the Sundance Film Festival, and HMNY’s formation of MoviePass Ventures, a wholly-owned subsidiary of HMNY founded to acquire rights in films with film distributors.
“We believe our business will succeed by granting the public greater access to see movies how they were originally intended to be seen – in theaters,” said HMNY’s Chairman and CEO Ted Farnsworth. “As the leading movie theater subscription company, we want to bring better value to our MoviePass fans. With this new annual plan, MoviePass is bringing cinema back to the masses.”
The MoviePass $6.95/month annual subscription plan is paid annually and has a one-time processing fee of $6.55.
According to TipRanks, one bullish voice is betting on this tech player: Brian Kinstlinger of Maxim rates a Buy rating on HMNY stock with a $16 price target, which implies a massive 426% upside from current levels.