MoviePass Added 1.1 Million Net New Subscribers In The First Quarter

Helios & Matheson (Nasdaq: HMNY) (“Helios”) announced financial results for the first quarter today. The company posted quarterly revenues of more than $49 million for 2018 and $1.3 for 2017, an increase of more than 3,700%. Quarterly earnings per share was $.15 basic income per share compared to a loss of ($1.17) per share one year ago. Subscriptions to MoviePass were very strong for the first quarter.

“We are excited to report our biggest quarter in Helios and Matheson and MoviePass combined history. This growth surpassed our expectations,” said Ted Farnsworth, Chairman and CEO of Helios.

A recent independent survey by NRG (National Research Group) which was hired by the Hollywood Reporter, strongly supports the comparatively strong customer satisfaction levels of our subscribers, as 83% of our subscribers are more satisfied with MoviePass than any other subscriber service, with this further supporting and underscoring the tremendous value proposition we provide to consumers.

The NRG (National Research Group) report also stated:

  • 41% decide what theater to attend based on MoviePass
  • If their favorite theater chain started their own service, only 18% would definitely switch their service
  • 72% of subscribers would pay more to see a movie in a premium format
  • 84% very likely to recommend MoviePass
  • MoviePass subscribers are twice as likely to attend movies on opening weekend
  • 83% are seeing more movies than before they were subscribers to MoviePass
  • Subscribers are twice as likely to see the following movies such as, LadyBird, the Post, I, Tonya, Annihilation.
  • 49% are more willing to attend movies alone
  • Nearly half of all moviegoers are aware of the MovePass service and one third say they are very likely to subscribe once they learn more
  • 49% say they are seeing movies that they wouldn’t normally see in theaters

“Our core strategy has always been to provide a compelling value proposition to consumers that vastly improves their movie-going experience. As our subscriber base rapidly grows and matures, our financial goal is to breakeven on subscribers and generate alternative revenue streams through studio/brand promotion, advertising, digital films, and other initiatives, as well as MoviePass Ventures, MovieFone, and owning original movies in theatrical release, where MoviePass earns revenue by owning an equity stake in the movies and earning ancillary revenues from streaming, DVD sales, retail sales, foreign distribution sales, and transaction sales, etc. We have done this with most recent acquisitions of American Animals, and Gotti starring John Travolta, Kelly Preston, and Stacy Keach which both premiere in the United States in June 2018. Recent trends related to average ticket purchases, churning net growth and reducing abuse has bolstered our confidence in our economic model being viable and shows significant improvement in achieving our objectives.

MoviePass is releasing key metrics that demonstrate significant improvements to its economic model and strong appeal to customers. The trendline based on our data suggests this figure will be reduced further in the coming months. As our subscriber base matures, we are also naturally seeing significantly reduced usage over time. MoviePass added 1.1 million net new subscribers in the first quarter and our subscriber base recently surpassed 2.7 million. Recent actions MoviePass has taken to curb misuse (announced on April 27, 2018) have not had a negative impact on its strong net subscriber growth, which continues to exceed a monthly run rate of 350,000 net new subscriber additions since late April.”

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About the Author

William B. West
William B. West
William B. West is editor-in-chief of CordCuttersTalk.com, Rokuki.com, and StreamingThisMonth.com. All three sites cover the latest cord cutters news, information, and updates.
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