MoviePass has exceeded 3 million paying subscribers and projects that the service will exceed 5 million subscribers by the end of the year.
MoviePass said Wednesday it currently represents more than 5% of U.S. box office receipts, with its peak weeks nearing 8% of box office.
Variety first reported in May that its parent company, Helios and Matheson Analytics, had acquired the exclusive option to buy the production slate and library of Emmett Furla Oasis Films, the producers of “Lone Survivor” and “End of Watch.” Helios also recently acquired Moviefone and its subsidiary, MoviePass Ventures, and has economic interests in films such as “Gotti” and “American Animals.”
“With MoviePass Films and MoviePass Ventures under the Helios umbrella, we are continuously adding more perks and services for our MoviePass subscribers,” said Helios chairman and CEO Ted Farnsworth. “Consistent growth in MoviePass subscribers means we can utilize our media companies in ways no one has seen before. With its considerable market share of moviegoers, MoviePass expects to influence its subscribers to engage with our other revenue channels throughout the entire film industry ecosystem.”
MoviePass, best known for allowing customers to watch a movie a day for less than $10 a month, is facing questions about its long-term future and current capitalization. Helios and Matheson’s stock has been trading for 40 cents-a-share for several weeks amid investor alarm about a cash shortage — since it pays exhibitors for the movie tickets that subscribers purchase. The issue was down 5% to 37 cents a share in trading on Wednesday.
In October, Helios and Matheson’s stock had been trading at $38.86 a share. The value has declined rapidly since a recent filing with the Securities and Exchange Commission revealed that the company had $15.5 million in available cash at the end of April, plus $27.9 million on deposit with merchants. Its monthly expenses totaled $21.7 million. Farnsworth said last month that the company had roughly $300 million available from an equity line of credit.
“MoviePass is moving quickly and decisively on a course to continue innovating the film industry from the ground up and delivering audiences for films and films for audiences,” said MoviePass CEO Mitch Lowe. “This is the eve of a transformative time in the movie industry. We are witnessing the dawn of a new Golden Age, where audiences, studios, and exhibitors are all connected, from top to bottom — all in the interest of diversifying the movie-going palate and demonstrating the success of smaller, independent titles.”