On Tuesday, AMC Theatres announced concern regarding a small fringe player attempting to resell movie tickets. According to AMC’s official press release, it believes MoviePass is not in the best interest of moviegoers, theatres or movie studios. AMC also confirmed that it was in consultation with its attorneys to determine how it could prevent the MoviePass service from being used at its theatres in the United States.
On the same day, MoviePass announced that it would change its subscription model to allow consumers to see 365 movies a year for a monthly price of $9.95. MoviePass intends to pay the theatre the full price for the ticket. According to AMC, the average price of watching a movie at one of its theatres during the recent financial quarter was $9.33.
AMC believes that MoviePass will lose money on each subscriber that sees two or more movies during the span of a month. Today, Bloomberg referred to the move as “crazy”. AMC believes that the movie isn’t going to do moviegoers any favors. AMC believes that the price level is unsustainable and will only lead to consumer disappointment when the service can no longer continue.
Simultaneously, AMC is worried about the impact of offering unlimited first-run movie content below $10 per month to theatres and studios, suggesting film makers will no longer have an incentive to make great films. AMC has made it clear that they will not provide MoviePass with discounts in the future.
AMC insists it is not opposed to subscription programs, but cannot support the “shaky and unsustainable program” offered by MoviePass. In addition, AMC is actively looking for ways to opt out and not participate in the MoviePass service.