MoviePass putting the squeeze on AMC
MoviePass is hitting AMC Theaters where it hurts.
The all-you-can-watch movie buffet has withdrawn support from 10 of the busiest AMC locations nationwide — including its monster Times Square megaplex — in a show of force as it tries to extract a deal out of the nation’s largest theater chain.
MoviePass CEO Mitch Lowe, in a statement, explained that his company had dropped the Midtown Manhattan location — along with nine other high-traffic theaters in cities including Los Angeles and Boston — as it strives “for mutually beneficial relationships with theaters.”
“Many exhibitors have been receptive to this mission, and we’re excited to keep working with theater chains that are closely aligned with our customer service values,” Lowe said.
MoviePass, which earlier this month announced it surpassed the 1.5 million user mark, has been at odds with AMC since it announced in August that it was slashing its prices from as much as $50 per month to only $9.95.
When the new rate was rolled out, AMC came out strongly against the plan, calling MoviePass a “small fringe player” and claiming cheap tickets are “not in the best interest of moviegoers.”
Since then, the popularity of MoviePass has skyrocketed, and the service has announced partnerships with several theater chains.
Ted Farnsworth, chief executive of Helios and Matheson Analytics, which owns a controlling stake in MoviePass, claims that MoviePass has contributed more than $135 million to AMC’s gross profits, and says that AMC should meet them at the bargaining table.