How Major Theater Companies Are Reacting to MoviePass
During the summer, moviegoing subscription service MoviePass dropped its monthly price from $19.95 to $9.95. Interest in the service surged, with the company signing up 400,000 people in the first month.
As you can imagine, the beleaguered movie theater chains were skeptical of the new low-priced entrant, with AMC Entertainment (NYSE: AMC) CEO Adam Aron saying, "[I]t is not yet known how to turn lead into gold."
Subscription services can be very profitable when executed well, but the chains seem unsure if they should embrace or compete against MoviePass, which is reflected in recent comments from their leadership. Here's how the industry incumbents are reacting.
Source: Fool.com
