- Movie theater subscription service, MoviePass, is getting into the distribution business as it has teamed with The Orchard to acquire the Sundance Film Festival title, “American Animals.”
- A day after the buy at Sundance the company announced its app will no longer be available at some AMC theaters.
- A media analyst believes MoviePass is “skating on thin ice.”
It’s been a roller-coaster ride this week for MoviePass.
On Wednesday, the movie theater subscription service announced that it was teaming with distribution company, The Orchard, to take the North American rights for the Sundance Film Festival title, “American Animals.” Then on Thursday, MoviePass revealed that it was pulling its service from some AMC theaters, the largest movie chain in the US.
Going into the acquisition game with MoviePass Ventures, the company hopes that by investing in movies it can share in their box-office success, which will help counter the company having to pay full price for the tickets at most of the theaters where MoviePass subscribers use the app.
However, there’s skepticism if this is the right move for MoviePass.
“It’s a diversion from their focus and a loss, as most film investments are,” Hal Vogel, media analyst and founder of Vogel Capital Management, told Business Insider. “In my opinion, they’re skating on thin ice.”
Another move that will not be universally praised is MoviePass deciding to pull its service from some AMC theaters. Subscribers will no longer be able to use the app at major theaters like Empire 25 in New York City, the Universal City Walk and AMC Century Plaza in Los Angeles, and AMC Loews Boston Common, according to Deadline.
MoviePass CEO Mitch Lowe said about the move in a statement obtained by Business Insider that, “As of today, you’ll find a small handful of theaters Read More Here