AMC Doesn't Have to Fear MoviePass 2.0
There was a strong nostalgic response to the rebirth of MoviePass. A whopping 775,000 people signed up for the priority waitlist a week ago, and now we have more details as the multiplex subscription service gears up to launch in Chicago, Kansas City, and Dallas. A wider rollout will follow, but there's no immediate timeline as to when that will play out.
MoviePass said it would select the initial test cities based on waitlist response, but it certainly seems as if the plan is to continue trolling movie theater chains. AMC Entertainment (NYSE: AMC) (NYSE: APE) -- the country's largest multiplex operator -- is headquartered in the Kansas City metropolitan area. Smaller rival Cinemark (NYSE: CNK) is based a few miles north of Dallas.
MoviePass wants to get noticed by exhibitors. It obviously had no problem getting noticed by cinema patrons. However, as more details come out we see that the reality of sustainability -- something that the platform in its initial iteration failed to do -- it's becoming clear that MoviePass 2.0 won't be as disruptive or popular as it was the first time around. This could be good news for all parties involved.
Source Fool.com
