Can MoviePass survive?
MoviePass, the monthly movie ticket-subscription service, will start its own film distribution branch called MoviePass Ventures this year.
This announcement occurred at the Sundance Film Festival in January, where the company also stated it was working with The Orchard to gain rights to a film called “American Animals.” The film was one of the most highly revered at the festival — it features a group of friends attempting a heist.
It is now nearly the end of May, and “American Animals” is set to drop on June 1st– just a couple days from now. The film is highly anticipated, with a Rotten Tomatoes score of 88% in previewing.
However, that does not mean that MoviePass is necessarily succeeding. In 2017, the firm lost nearly $151 million, and it has lost $20 million each month since September. The owner company Helios and Matheson Analytics (HMNY) has seen its shares plummet almost 99% since October 2017.
But if this film is a success, their company could turn around. They have an equal cost share with The Orchard, so they will split revenue from “American Animals” evenly. In addition, they will partner with Vertical Entertainment to release “Gotti” on June 15.
Although MoviePass and its shareholders may be sweating right now, if they cash in on these movies, they could see the turn of their company.
Featured image via Pixabay/annca