Jon Hadad

About the Author Jon Hadad

Jon Hadad graduated from the University of Delaware with a degree in political science. Prior to joining the Smarter Analyst team, he was an industry analyst at a New York research firm.

After Horrid 2018, Matheson Analytics (HMNY) Hoping New Pricing Plan Will Spur 2019 Growth


If you took a look at Helios and Matheson Analytics’ (HMNY) yearly chart, you’d probably have no idea that this company was among the most discussed in 2018. While the parent-company of unlimited movie seller MoviePass saw its stock surge nearly 700% towards the end of last year – as customers were flocking to its $10 per month service in droves – the stock is now trading at penny stock levels. The service became extremely popular last year, but as more people signed up (and presumably went to movies) the company’s losses surged. This is the exact opposite of how business should work – that is, expenses should decrease relative to growing revenue, but MoviePass saw expenses increase. Once the math caught up to it, HMNY’s stock plummeted and is now trading at less than two pennies.

Looking ahead to 2019, HMNY and MoviePass are hoping a three-tier pricing system will help turn things around. Instead of offering unlimited movies, each tier comes with three movies per month; the higher the tier, the larger the selection you have. While blogger Elephant Analytics says this could have been a “decent” plan had they launched it last year, he argues the company has “suffered extensive brand damage” with recovery seeming impossible.

Elephant says that MoviePass has “largely been sliding towards irrelevance in the last few months,” and points to its app falling out of the top 600 in Apple’ App Store’ free entertainment apps (after ranking in the top 25 in June). The blogger points out that with customers continuing to cancel their accounts and small growth in app downloads, the service is experiencing a net decrease in customer count.

HMNY is also looking at other approached to generate revenue. It launched a film studio last year and has begun releasing movies, including American Animals, Border and Monsters and Men. While some of their movies have been well received, Elephant says the company is unlikely to be making “much (if any) profits” due to low sales.

 

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