Meet the Lone Loser in MoviePass Hitting 1 Million Members
It's no surprise to see the best deal in the multiplex industry gaining momentum. MoviePass announced on Wednesday that it has surpassed a million subscribers to its namesake service, a debit card that lets members screen a single movie a day for just $9.95 a month. Shares of Helios and Matheson Analytics (NASDAQ: HMNY) moved 3% higher on the news, as it owns a nearly 54% stake in the platform.
MoviePass has come a long way since it was servicing just 20,000 accounts in mid-August. Slashing the monthly price of its service from what had been as high as $30 to $50 to less than 10 bucks turns heads. The last movie ticket you bought was probably for more than $9.95, so just imagine how much money you can save if you see more than a single movie a month through MoviePass. Some of the larger theater chains have complained about MoviePass disrupting the value proposition, and it's easy to see why there's nervous rumbling among streaming video services if folks are flocking back to the corner multiplex.
At the end of the day, the theaters will benefit from the increase in box office sales. Streaming isn't going away. There's only one real loser when it comes to MoviePass hitting a significant seven-figure milestone this week, and -- spoiler alert -- it's the stock that rose 3% on Wednesday following the announcement.
Source: Fool.com
