AMC - MoviePass Is Coming but AMC Shouldn't Be Worried
It's a blast from the multiplex past. MoviePass is coming back , rising from the dead nearly three years after calling it quits . We still don't know much about how Movie Pass will work this time, or how it will survive the inescapably bad math that doomed the multiplex subscription service the first time around.
What we know so far is that the service is expected to debut around Labor Day. A waitlist will launch this Thursday. The service is expected to have three pricing tiers, but we don't know what will come with the $10, $20, and $30 monthly plans. All movie theaters that accept credit cards for payment will be available for MoviePass-subsidized screenings, so that does mean that members will be able to use it at AMC Entertainment (NYSE: AMC) , Cineworld 's (OTC: CNWGY) (OTC: CNNW.F) Regal, Cinemark (NYSE: CNK) , and most other chains.
Will this be a positive or a negative development for the industry, and AMC in particular? Is the question moot, because it seems highly unlikely that MoviePass can gain traction with anything close to the original model? We'll have more answers soon, but it doesn't seem like a model that was doomed to fail a few years ago will fare any better the second time around.
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MoviePass Is Coming, but AMC Shouldn't Be Worried