brown4321
1 year ago
MoviePass Reaches 1 Million Tickets Sold and Turns First Profit
By ETCentric Staff
February 20, 2024
MoviePass says it has sold more than 1 million tickets since relaunching last spring, and has also announced the first profitable year in the company’s 13-year history. Co-founder and CEO Stacy Spikes, who purchased the company out of bankruptcy in 2021, is giving artificial intelligence much of the credit for the turnaround. The MoviePass Cinematic Marketplace is an aggregator for the theatrical industry that uses AI and machine learning to improve attendance engagement and ticket sales. Spikes says hitting the milestones “highlights the powerful impact” the technology enhancements have had “from the previous business model.”
MoviePass uses a proprietary algorithm to allocate credits to movies based on a variety of factors, including days of the week and volume of business at participating theaters. MoviePass members pay to subscribe, then purchase tickets using the credits that come with their selected membership level.
The system “helps drive exploration of titles looking to compete against movies with much larger budgets,” according to MoviePass, which says in an announcement “that on average, there is a 40 percent shift to theater location offering the same movie for fewer credits.” The internal research also found that “members increase midweek attendance by 50 percent and go to an average of 2.4 different theater locations while using their MoviePass subscription.”
A CNET reporter says his own interaction with MoviePass found the system offers the most savings for weekday showings, but was priced almost identically to other first-run theater chains when attending “a new movie on a Friday night.” The writer goes on to call the recent milestones “particularly notable” considering the company’s tumultuous past.
Business Insider writes that “the movie-ticket-subscription service had become the butt of jokes for a couple of years when it famously dropped its monthly price to an unsustainable $10 a month in 2017, which led to a predictable bankruptcy.” Inc. recounts the downfall, and says Spikes paid only $140,000 to purchase the company at a liquidaton auction.
Though Spikes hasn’t revealed the number of memberships MoviePass has sold since its relaunch, nor publicly shared revenue, Business Insider says it was able to confirm the CEO’s profitability claim by “viewing internal data.”
brown4321
1 year ago
MoviePass Reaches 1 Million Tickets Sold and Turns First Profit
By ETCentric Staff
February 20, 2024
MoviePass says it has sold more than 1 million tickets since relaunching last spring, and has also announced the first profitable year in the company’s 13-year history. Co-founder and CEO Stacy Spikes, who purchased the company out of bankruptcy in 2021, is giving artificial intelligence much of the credit for the turnaround. The MoviePass Cinematic Marketplace is an aggregator for the theatrical industry that uses AI and machine learning to improve attendance engagement and ticket sales. Spikes says hitting the milestones “highlights the powerful impact” the technology enhancements have had “from the previous business model.”
MoviePass uses a proprietary algorithm to allocate credits to movies based on a variety of factors, including days of the week and volume of business at participating theaters. MoviePass members pay to subscribe, then purchase tickets using the credits that come with their selected membership level.
The system “helps drive exploration of titles looking to compete against movies with much larger budgets,” according to MoviePass, which says in an announcement “that on average, there is a 40 percent shift to theater location offering the same movie for fewer credits.” The internal research also found that “members increase midweek attendance by 50 percent and go to an average of 2.4 different theater locations while using their MoviePass subscription.”
A CNET reporter says his own interaction with MoviePass found the system offers the most savings for weekday showings, but was priced almost identically to other first-run theater chains when attending “a new movie on a Friday night.” The writer goes on to call the recent milestones “particularly notable” considering the company’s tumultuous past.
Business Insider writes that “the movie-ticket-subscription service had become the butt of jokes for a couple of years when it famously dropped its monthly price to an unsustainable $10 a month in 2017, which led to a predictable bankruptcy.” Inc. recounts the downfall, and says Spikes paid only $140,000 to purchase the company at a liquidaton auction.
Though Spikes hasn’t revealed the number of memberships MoviePass has sold since its relaunch, nor publicly shared revenue, Business Insider says it was able to confirm the CEO’s profitability claim by “viewing internal data.”
brown4321
1 year ago
NEW YORK, Feb. 13, 2024 (GLOBE NEWSWIRE) -- MoviePass Inc., the technology platform enhancing the exploration of film and the moviegoing experience, today announced that its members have seen more than one million on its new platform. The company also achieved its first profitable year ever. The average MoviePass member saved 35% on the cost of going to movies since MoviePass relaunched in beta during Q1 2023.
The MoviePass Cinematic Marketplace is an aggregator for the industry that uses AI and machine learning engines to improve attendance and performance. The proprietary credit system helps drive exploration of titles looking to compete against movies with much larger budgets. Based on internal member testing, MoviePass found that on average, there is a 40 percent shift to theater location offering the same movie for fewer credits. Members increase midweek attendance by 50 percent and go to an average of 2.4 different theater locations while using their MoviePass subscription.
"Reaching this pivotal milestone highlights the powerful impact of our AI and machine learning enhancements from the previous business model, while continuing to drive value for members and boosting attendance for partners profitably. But we could not have done it without the support of our MoviePass community," said Stacy Spikes, Co-Founder and CEO.
MoviePass continues to add new features that add value to its members. In November 2023, the company unveiled several new platform updates including online ticketing, virtual membership cards in the app, the ability to buy additional credits on top of existing subscription plans, and coming soon the option to see premium large format films, including IMAX.
MoviePass has the largest theater footprint of any subscription service featuring over 3500 locations across America and covering all 50 states with a reach of over 97 percent of the market.
About MoviePass Inc.
MoviePass is a technology platform enhancing the exploration of film and the moviegoing experience. Started in 2011, MoviePass quickly became the nation's premier movie theater subscription service, providing film enthusiasts with the ability to attend select new movies in theaters across the United States. After leaving the company when MoviePass was acquired in 2017, MoviePass’ Co-Founder and CEO Stacy Spikes bought the company’s assets out of bankruptcy and re-launched the company in 2022. To learn more, visit moviepass.com.
Contact
LaunchSquad for MoviePass
brown4321
1 year ago
NEW YORK, Feb. 13, 2024 (GLOBE NEWSWIRE) -- MoviePass Inc., the technology platform enhancing the exploration of film and the moviegoing experience, today announced that its members have seen more than one million on its new platform. The company also achieved its first profitable year ever. The average MoviePass member saved 35% on the cost of going to movies since MoviePass relaunched in beta during Q1 2023.
The MoviePass Cinematic Marketplace is an aggregator for the industry that uses AI and machine learning engines to improve attendance and performance. The proprietary credit system helps drive exploration of titles looking to compete against movies with much larger budgets. Based on internal member testing, MoviePass found that on average, there is a 40 percent shift to theater location offering the same movie for fewer credits. Members increase midweek attendance by 50 percent and go to an average of 2.4 different theater locations while using their MoviePass subscription.
"Reaching this pivotal milestone highlights the powerful impact of our AI and machine learning enhancements from the previous business model, while continuing to drive value for members and boosting attendance for partners profitably. But we could not have done it without the support of our MoviePass community," said Stacy Spikes, Co-Founder and CEO.
MoviePass continues to add new features that add value to its members. In November 2023, the company unveiled several new platform updates including online ticketing, virtual membership cards in the app, the ability to buy additional credits on top of existing subscription plans, and coming soon the option to see premium large format films, including IMAX.
MoviePass has the largest theater footprint of any subscription service featuring over 3500 locations across America and covering all 50 states with a reach of over 97 percent of the market.
About MoviePass Inc.
MoviePass is a technology platform enhancing the exploration of film and the moviegoing experience. Started in 2011, MoviePass quickly became the nation's premier movie theater subscription service, providing film enthusiasts with the ability to attend select new movies in theaters across the United States. After leaving the company when MoviePass was acquired in 2017, MoviePass’ Co-Founder and CEO Stacy Spikes bought the company’s assets out of bankruptcy and re-launched the company in 2022. To learn more, visit moviepass.com.
Contact
LaunchSquad for MoviePass
brown4321
2 years ago
HMNY Increases Stake in MoviePass™ Through Offering of $100M in Convertible Notes
NOVEMBER 13, 2017
MSK client Helios and Matheson Analytics Inc. (Nasdaq: HMNY), a provider of information technology services and solutions, and MoviePass Inc., a company in which HMNY has agreed to purchase a majority stake, announced that HMNY has entered into a securities purchase agreement with institutional investors for HMNY to issue convertible notes in the aggregate principal amount of $100,000,000 (the “Notes”), for the purpose of further funding MoviePass, and for general corporate purposes. HMNY is not obligated to register the resale of any shares underlying the Notes with the Securities and Exchange Commission. Absent registration, the investors may resell the shares underlying the Notes only pursuant to Rule 144 or another available exemption from registration.
The Notes will be convertible, at the option of the holders, at a fixed conversion price of $12.06, subject to adjustment.
The investors paid for the Notes with $5 million in cash up front and $95 million in investor notes payable to HMNY (the “Investor Notes”). The Investors are required to prepay approximately $15.65 million of the Investor Notes to HMNY in equal weekly payments over the next seven weeks. The investors may prepay the remaining balance of the Investor Notes, with the resulting cash being paid to HMNY, in their discretion.
The purpose of the financing transaction is to enable HMNY to pay the remaining $5 million balance that HMNY will owe to MoviePass, subject to certain conditions, under a promissory note that HMNY is obligated to give to MoviePass upon the closing of the previously announced Securities Purchase Agreement, dated August 15, 2017 and amended on October 6, 2017, between HMNY and MoviePass (as amended, the “MoviePass Purchase Agreement”), and to increase HMNY’s ownership stake in MoviePass by paying MoviePass up to $20 million upon HMNY’s exercise of its additional investment option under the Investment Option Agreement, dated October 11, 2017, between HMNY and MoviePass, and for any other transaction where HMNY increases its ownership interests or other rights and interests in MoviePass.
In connection with the financing, MoviePass entered into a waiver agreement with HMNY waiving any rights of MoviePass to terminate the MoviePass Purchase Agreement and all conditions to MoviePass’ obligations under the MoviePass Purchase Agreement. The closing of the MoviePass Purchase Agreement remains subject to approval by HMNY’s stockholders. MoviePass also entered into a guaranty with the investors in the financing guarantying HMNY’s obligations under the Notes.
Canaccord Genuity Inc. acted as sole placement agent for the financing. Palladium Capital Advisors LLC acted as a financial advisor to HMNY in connection with the financing.
MSK served as HMNY’s legal counsel in connection with the agreement to issue the Notes and related transactions between HMNY and MoviePass. Kevin Friedmann, Chairman of MSK’s Corporate & Business Transactions Department, led the MSK deal team. The MSK deal team also included MSK Partner Melanie Figueroa and Associates Blake Baron and Latore Price.
“We are proud to continue representing Helios and Matheson Analytics in its industry impacting transactions,” stated Mr. Friedmann. “And we are beyond gratified to help Helios further fuel MoviePass as it enhances the movie-going experience,” Mr. Friedmann concluded.
For additional information concerning the details of the financing, please refer to the Current Report on Form 8-K filed by HMNY with the U.S. Securities and Exchange Commission on November 6, 2017.
Media contact:
Doug Gold, Chief Marketing Officer
310.312.3712
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