AMC and MoviePass have never liked one another, and now their mutual enmity has grown with the announcement that MoviePass is pulling out of 10 AMC theaters across the country. The subscription-based company, which charges a monthly fee of $9.95 for customers to see one movie per day, claims responsibility for a significant portion of the theater chain’s profits; AMC has downplayed these claims and rebuffed MoviePass’ attempts to enter into a revenue-sharing deal.
That would appear to be the reason why the service is no longer available at such popular locations as the AMC Century City 15 in Los Angeles and the AMC Loews Boston Common 19 in Boston. This led to confusion among customers, who were unsure which company was responsible for the decision.
“AMC has taken no action to block the acceptance of MoviePass at our theatres,” the chain said in a statement. “We have no further comment about MoviePass’s unilateral actions. We are, however, disappointed that MoviePass continues to make false statements about AMC, including today when MoviePass greatly exaggerated its contributions to AMC’s profitability.”
The statement in question claimed that MoviePass brought in 62 percent of AMC’s profits. “In publicly disclosed 2017 financial documents, AMC claimed each customer spends $4.88 on concessions each visit – meaning MoviePass subscribers could bring an additional $17.1 million in AMC concession revenues for Q1 of 2018, which on an annual run rate means $68.4 million more — an annualized run rate going forward of over $203.4 million revenue from MoviePass subscribers,” CEO Ted Farnsworth said.