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AMC Theaters Is Not Happy About the New Super Cheap Movie. Pass Service. You probably saw this coming. The long embattled theatrical movie subscription service Movie. Pass blew everyone’s minds on Tuesday with an unbelievably cheap service that would seem to undermine the economics of moviegoing, and now, the largest movie theater chain in America is threatening legal action. AMC Theaters wants to block Movie. Pass subscribers from using the service in its theaters. In a statement that feels both predictable and defensive, AMC slammed Movie.

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Pass’s new $1. 0- per- month offering. For that impressive price, Movie. Movie Trailers Cinderella (2015) more. Pass will let subscribers see as many movies as you want, except for IMAX and 3.

D movies. Movie. Pass still plans on paying the full ticket price to the theaters through a debit card transaction with Mastercard. The CEO of Helios and Metheson Analytics, which now owns a majority stake in the Movie. Pass, told Bloomberg that the data collected about viewing habits could eventually be used to serve advertisements or other marketing to users. What is the sweet spot for getting people to join a movie theater ticket subscription service? Then comes the defensive part: In AMC’s view, that price level is unsustainable and only sets up consumers for ultimate disappointment down the road if or when the product can no longer be fulfilled. This idea runs contrary to statements from Movie. Pass, which argues that the subscription service will sell more tickets—even if Movie.

Pass has to lose some money in the process—and encourage moviegoers to spend more at concessions, where theaters enjoy high profit margins. Remember, this grand plan is being funded, in part, by selling a majority stake to Helios and Metheson Analytics. Movie. Pass also hopes to IPO next year, which could bring in more capital, but it certainly looks like Movie. Pass is betting that it can lose a bunch of money, attract a lot of new customers, and hopefully, sell that sweet data. At best, the economics of this plan are very risky. AMC actually partnered with Movie. Pass in 2. 01. 4 on a theatrical subscription program that started at $3.

Needless to say, the cheapening should be alarming to AMC, whose stock price has been decimated this year amidst declining ticket sales. But Movie. Pass chief executive Mitch Lowe, who was also an early executive at Netflix, claims that what’s good for his company is good for the studios and the theater chains. There’s still something a little off about the whole concept of a way- to- cheap unlimited pass saving the movie biz, and Even Lowe admits it.“. We’ll update this post if we hear back.