×
You will be redirected back to your article in seconds

MoviePass Owner Hits Back at Reports Service Is Dying

MoviePass’ stock has tanked in recent days on concerns about a cash shortage.

In an interview at the Cannes Film Festival, Ted Farnsworth, head of MoviePass’ parent company Helios & Matheson Analytics, said the subscription service has roughly $300 million available to it from an equity line of credit. The Helios chief is in the South of France to premiere “Gotti,” the John Travolta crime movie that MoviePass is releasing in conjunction with Vertical Entertainment.

“There’s been a feeding frenzy of negativity, but it’s not going to slow us down,” said Farnsworth. “I’m not worried at all. You’re going to see. We’re doing more acquisitions of movies and companies.”

MoviePass faces its share of skeptics. In a public filing last week, MoviePass disclosed it had $15.5 million in available cash — less than it traditionally spends to finance ticket buying on a monthly basis. Shares of parent Helios & Matheson Analytics slid 17¢ on Thursday to 61¢, a 22% decline and the second-lowest close for the stock since the company went public in 1997. Wall Street may have cooled on the service, but Farnsworth hit back, saying, “We’ve got 17 months’ worth of cash without further raises of capital.”

MoviePass allows users to see a movie-a-day for $9.95 a month. That means that it loses money on many of its customers. In order to work, MoviePass pays theaters full price for the tickets its subscribers buy, but in major markets such as New York and Los Angeles, tickets cost as much as $15 a pop. MoviePass said it expects users will stop seeing as many films over time and will eventually see less than two movies a month.

Farnsworth was particularly annoyed with comments made by AMC Theaters chief Adam Aron, who told analysts that he had calculated that MoviePass users were attending the theater multiple times a month and expressed skepticism that the company had been able reduce attendance to the levels it needs to remain profitable. When MoviePass slashed it prices last summer to $9.95 and saw its subscriber levels rise, Aron dismissed the service and said its model was unsustainable.

“They’re trying to put us out of business,” said Farnsworth. “We’ve become a serious threat.”

The Helios CEO said that he was finalizing a major acquisition in the coming days that will be announced at the Cannes Film Festival.

“It’s going to be substantial,” said Farnsworth. “People are going to go, ‘Hmm how did they pull it off?'”

More Film

  • Fyre Festival Caterer Receives Thousands in

    Unpaid Fyre Festival Caterer Raises Thousands in Donations on GoFundMe

    As two Fyre Festival documentaries hit the airwaves, a couple who say their credit was ruined due to the Fyre Festival’s lack of payment for their services have raised $54,381 at time of publication on GoFundMe. Elvis and Maryann Rolle wrote on their page that they catered “no less than 1000 meals per day” in [...]

  • DF-10956_R – Gwilym Lee (Brian May) and

    'Bohemian Rhapsody' Producer Confirms Bryan Singer's Reason for Leaving, Says 'No One' Was Attached to Play Mercury

    “Bohemian Rhapsody” producer Graham King provided insight into some of the events surrounding the Golden Globe-winning film Saturday at the Producers Guild Awards Nominees Breakfast, including director Bryan Singer’s departure from the film partway through production. “It’s an unfortunate situation, with like 16, 17 days to go and Bryan Singer just had some issues, his [...]

  • Author Tony Mendez arrives at the

    Tony Mendez, Former CIA Officer Depicted in 'Argo,' Dies at 78

    Tony Mendez, the former CIA technical operations officer who orchestrated the 1980 rescue of six American diplomats from Iran and who was portrayed by Ben Affleck in the Academy Award winning film “Argo,” has died. He was 78. Mendez’s book agent, Christy Fletcher, announced the news on Twitter Saturday morning. “Early this morning, Antonio (Tony) [...]

  • Glass Movie

    'Glass' to Rank in Top 3 MLK Debuts With $48 Million

    M. Night Shyamalan’s “Glass” is on its way to a solid debut with an estimated $48 million for the four-day Martin Luther King Jr. weekend. A sequel to 2000’s “Unbreakable” and 2017’s “Split,” the Universal superhero thriller should bring in around $41 million from 3,841 domestic locations over the Friday through Sunday period. The estimates are [...]

  • China's 'Three Adventures of Brooke' to

    China's 'Three Adventures of Brooke' to Hit French Theaters (EXCLUSIVE)

    Midnight Blur Films has signed a deal with French distributor Les Acacias to release Chinese arthouse drama “Three Adventures of Brooke” in France this year, the Chinese production company told Variety on Saturday. A release date has yet to be set for the film, which premiered at the Venice Film Festival and stars Chinese newcomer Xu Fangyi [...]

  • Noe Debre On His Directorial Debut,

    Top French Screenwriter Noe Debre Makes Directorial Debut, ‘The Seventh Continent’

    This last half-decade, few French screenwriters have run up such an illustrious list of co-write credits as Noé Debré. Thomas Bedigain’s writing partner on Jacques Audiard’s Cannes Palme d’Or winner “Deephan,” Debra co-penned Bedigain’s own debut, “The Cowboys,” “Racer and the Jailbird,” by Michael Roskam, and “Le Brio,” directed by Yvan Attal. He has now [...]

  • Julien Trauman Talks Survival-Thriller Short ‘At

    Julien Trauman on Survival-Thriller Short ‘At Dawn’

    France’s Julien Trauman has never been afraid to play with genre, and in his latest short, the MyFrenchFilmFestival participant “At Dawn,” he employs aspects of psychological thriller, survival, coming-of-age and fantasy filmmaking. “At Dawn” kicks off the night before when a group of teens, one about to leave town, are imbibing heavily around a beach-side [...]

More From Our Brands

Access exclusive content